Multiple Jobs Tax Guide
How tax, National Insurance, and your Personal Allowance actually work when you have more than one job — whether that’s two employed roles, a side hustle, or self-employed income alongside a salary.
How Tax Works With More Than One Job
A quick explainer before you check your payslips or tax code.
Your Personal Allowance & Tax Codes
Why your second payslip often looks more heavily taxed
Everyone in the UK gets a tax-free Personal Allowance each year. When you have one job, HMRC applies your full allowance to that income through your tax code, usually 1257L for the current standard allowance.
When you take on a second job, HMRC normally assumes your Personal Allowance is already being used up by your main job, so your second job is often given a BR, D0, or D1 tax code instead, meaning it’s taxed from the first pound you earn.
This doesn’t mean you’re paying more tax overall than you should — it just means the tax-free portion of your income is applied to one job rather than split evenly, and HMRC reconciles everything at the end of the tax year if anything is out of balance.
Quick Facts
Key things to know about multiple jobs and tax
Managing Tax Across Multiple Jobs
Follow these steps to make sure you’re taxed correctly and not leaving money on the table.
Tell HMRC About Your New Job
Your new employer will ask you to confirm whether this is your main job or an additional one, so HMRC can issue the right tax code from the start.
Check Each Payslip’s Tax Code
Look for codes like 1257L on your main job and BR, D0, or D1 on your second job, and confirm they match what you’d expect based on your combined income.
Consider Splitting Your Allowance
If your second job pays more than your main job, contact HMRC or use your Personal Tax Account to ask for your Personal Allowance to be reallocated between the two.
Declare Any Self-Employed Income
If part of your income is from freelance or self-employed work, register for Self Assessment and report it separately, alongside any employed income, each tax year.
Common Tax Codes for a Second Job
These are the tax codes most people see on a second or additional job, and what each one means in practice.
| Tax Code | Meaning | Typical Use Case |
|---|---|---|
| 1257L | Standard tax-free Personal Allowance applied | Your main job |
| BR | All income taxed at the basic rate (20%) | Second job, basic-rate taxpayer |
| D0 | All income taxed at the higher rate (40%) | Second job, higher-rate taxpayer |
| D1 | All income taxed at the additional rate (45%) | Second job, additional-rate taxpayer |
| 0T | No allowance given; tax calculated on full income | Missing details or allowance used up |
| NT | No tax deducted from this income | Specific HMRC-approved circumstances |
Second Employed Job vs. Self-Employed Side Income
How your extra income is taxed depends heavily on whether it comes through payroll or you’re working for yourself.
| Aspect | Second Employed Job | Self-Employed Side Income |
|---|---|---|
| How tax is collected | Automatically via PAYE | Self Assessment tax return |
| National Insurance | Deducted per job by each employer | Paid via Self Assessment (Class 2 & 4) |
| Tax-free allowance | Usually applied to main job only | Shared with employed income total |
| Reporting deadline | Handled by employer, no action needed | Register and file by 31 January each year |
| Expenses | Not usually deductible | Allowable business expenses can reduce tax |
Multiple Jobs Tax FAQ
Answers to the questions people with more than one income source ask most often.
Not necessarily more tax overall, but your second job is often taxed differently because your Personal Allowance is usually allocated entirely to your main job. This can make your second payslip look more heavily taxed, even though your total tax bill across both jobs is calculated correctly.
A BR tax code means all of your income from that job is taxed at the basic rate of 20%, with no Personal Allowance applied, because HMRC assumes your allowance is already being used against your main job.
Yes. You can ask HMRC to split your Personal Allowance across both jobs if it works out better for you, for example if your second job pays more than your main job. This is done by contacting HMRC directly or updating your details online.
National Insurance thresholds are usually applied separately to each job, so you could pay National Insurance on a second job even if your combined income would not have crossed the threshold as a single salary. You may be able to claim a refund in some circumstances.
Your employer deducts tax and National Insurance from your employed income through PAYE as normal. Your self-employed income is reported separately through a Self Assessment tax return, and tax on that income is calculated and paid based on your total combined income.