By Shamayun Chowdhury, Senior Accountant · Published: 13 October 2026 · Last reviewed: October 2026 · Applies to the 2026/27 tax year
Quick Answer
There is no separate second employment tax in the UK. Pay from a second job is added to your other income and taxed at the normal rates. Because your Personal Allowance usually sits with your main job, the second job is often taxed in full, typically under a BR code at 20%.
You take on evening shifts or a weekend role, the first payslip arrives, and a fifth of it has gone straight to HMRC. It is easy to assume a special second employment tax has kicked in. In reality, the rules are the same as for any job; what changes is how your tax-free allowance is shared out.
This guide explains how second job tax works for 2026/27: the bands, the tax codes your second employer may use, National Insurance on each job, and two worked examples. Every figure is checked against GOV.UK.
Key takeaways
- A second job is taxed at your normal Income Tax rates; there is no extra charge.
- Your £12,570 Personal Allowance normally goes against your main job, so the second job is often taxed from the first pound.
- BR, D0 and D1 are the codes HMRC usually gives a second job, taxing it at 20%, 40% or 45%.
- National Insurance is worked out separately by each employer, using the £242-a-week threshold for each job.
- If your combined pay crosses £50,270, a BR code can leave you owing more tax later.
In this guide
- What is second employment tax?
- Do you get taxed more on a second job?
- 2026/27 Income Tax bands for two jobs
- Second job tax code: BR, D0, D1 and 0T
- How much do you get taxed on a second job?
- Example scenarios (illustrative)
- National Insurance on two jobs
- Second job vs self-employed side income
- Overpaid or underpaid second employment tax
- Common mistakes
- FAQs
- 2026/27 checklist
- Final Verdict
What Is Second Employment Tax?
“Second employment tax” is a search term, not a tax HMRC charges. It describes the Income Tax and National Insurance taken from a second job paid through PAYE. Each employer runs its own payroll and deducts tax using the code HMRC gives it for that job.
The catch is that neither employer can see what the other pays you. HMRC joins the dots: it decides how much of your Personal Allowance each job gets, then issues a tax code to each payroll. At the end of the year, it compares the total tax deducted with the tax actually due on all your income.
Do You Get Taxed More on a Second Job?
No. The tax rate on a second job is exactly the rate that applies to your total income. It only feels higher because the tax-free part of your income has already been used by your main job. A main job paying £20,000 uses the full allowance, so every pound of a second job lands in the 20% basic-rate band.
So when people ask about tax on a second job, the honest answer is: same rates, different order. The second employment tax you see on a payslip is your normal tax, simply collected from a job that has no allowance attached.
2026/27 Income Tax Bands for Two Jobs
Add your salaries together and compare the total with these bands. GOV.UK’s Income Tax rates for England, Wales and Northern Ireland in 2026/27 are:
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
The Personal Allowance falls by £1 for every £2 of adjusted net income over £100,000. Source: GOV.UK, checked October 2026.
Scotland uses six bands on earnings: starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45% and top 48%, according to GOV.UK’s Scottish Income Tax page. For every rate and allowance in one place, see our UK tax rates and allowances hub for 2026/27.
Second Job Tax Code: BR, D0, D1 and 0T Explained
Your tax code tells each employer how much tax-free pay to give you before deducting tax. GOV.UK confirms that you get a separate code for each employment or pension you have. For most people, the main job carries 1257L and the second job carries one of the codes below.
| Code | What it does | When a second job might get it |
|---|---|---|
| BR | All pay taxed at the basic rate (20%) | Combined income stays within the basic-rate band |
| D0 | All pay taxed at the higher rate (40%) | Your main job already uses up the basic-rate band |
| D1 | All pay taxed at the additional rate (45%) | Total income is above £125,140 |
| 0T | No tax-free allowance; tax worked out through the normal bands | Allowance used up elsewhere, or the employer lacks your details |
Source: GOV.UK, What your tax code means. GOV.UK notes BR, D0 and D1 are usually used if you have more than one job or pension. Checked October 2026.
A BR code is the most common second job tax code, and it is also why the tax for two jobs often looks like a flat 20% slice of every payslip.
The starter checklist and your new employer
If you do not hand over a P45, your new employer will ask you to complete HMRC’s starter checklist. Its three employee statements decide your first tax code:
- Statement A: this is your first job since 6 April, with no other pay or pensions. The employer uses the full Personal Allowance.
- Statement B: you have had another job since 6 April but have no P45, or you have received certain other payments. The allowance is used on a week 1/month 1 basis.
- Statement C: you have another job and/or a pension. The employer uses tax code BR.
Ticking Statement C for a genuine second job is correct. Ticking Statement A by mistake gives the second employer your allowance as well, which usually leads to an underpayment that HMRC collects later.
Emergency tax on a second job
A code ending in W1, M1 or X is an emergency code; for 2026/27 that means 1257L W1, 1257L M1 or 1257L X. GOV.UK explains that tax is then based only on each period’s pay, as if you earned that amount all year. It is usually temporary, but HMRC can take up to 35 days to send a corrected code after it has details from both employers.
Can you split your Personal Allowance between two jobs?
Yes, where it makes sense. If your main job pays less than £12,570, part of the allowance goes unused. You can ask HMRC to move the spare amount to your second job, which reduces the second employment tax deducted during the year. You can check and update your codes through your HMRC personal tax account. If both jobs together earn less than £12,570, there is no Income Tax to pay at all, so splitting changes nothing.
Tax Tip
Check both codes after starting a second job. If your second employment tax looks wrong for more than a month or two, raise it with HMRC early; small errors are easier to fix during the year than through a P800 calculation afterwards.
How Much Do You Get Taxed on a Second Job?
The answer depends on which band the second job’s pay falls into once it is added to your main salary. In other words, your second job tax rate is simply your marginal rate. This quick second job tax calculator table shows the yearly Income Tax on common amounts, assuming your main job already uses your full Personal Allowance.
| Second job pay (year) | Tax if it all falls in the 20% band | Tax if it all falls in the 40% band |
|---|---|---|
| £5,000 | £1,000 | £2,000 |
| £10,000 | £2,000 | £4,000 |
| £15,000 | £3,000 | £6,000 |
England, Wales and Northern Ireland rates for 2026/27. If the second job straddles £50,270, part is taxed at 20% and part at 40%, as Example 2 shows.
Example Scenarios (illustrative)
Example 1: Daniel stays in the basic-rate band
Daniel earns £30,000 in his main job on code 1257L and £8,000 from weekend work on code BR, paid evenly through the year.
- Main job tax: (£30,000 − £12,570) × 20% = £3,486
- Second job tax on BR: £8,000 × 20% = £1,600
- Tax actually due on £38,000: (£38,000 − £12,570) × 20% = £5,086, exactly what was deducted
- National Insurance on the second job: nil, because about £154 a week is below the £242 threshold
Example 2: Aisha crosses into the higher-rate band
Aisha earns £45,000 in her main job and £12,000 from a second job taxed on BR. Her combined £57,000 pushes £6,730 into the 40% band.
- Tax due: £37,700 × 20% + £6,730 × 40% = £7,540 + £2,692 = £10,232
- Tax deducted: £6,486 from the main job + £2,400 from the second job = £8,886
- Shortfall: £1,346, which HMRC would normally collect through a code change or a P800 calculation
This is where second employment tax catches people out. The BR code is not wrong for the first part of the job, but it cannot see the band change. Asking HMRC to review your codes as soon as your combined pay passes £50,270 avoids a bill later.
Both examples are illustrative, assume no other income, reliefs or student loan, and use 2026/27 rates for England, Wales and Northern Ireland.
National Insurance on Two Jobs
National Insurance works differently from Income Tax. Each employer works out Class 1 contributions on the pay it gives you, using its own threshold. For 2026/27, employees pay 8% on weekly earnings between £242 and £967, and 2% above £967.
In Aisha’s case, her second job pays about £231 a week, under the threshold, so no employee NI is taken from it. Had all £57,000 come from one employer, her employee NI would have been about £556 higher. This is the one part of second employment tax that often works in your favour: Income Tax is worked out on the combined total, but NI is not.
At the other end of the scale, high earners can pay more NI than needed across two payrolls. GOV.UK allows you to apply to defer if you earn £967 or more a week in one job and £242 or more in the other. For 2026/27, HMRC must receive form CA72A by 14 February 2027.
Student loans and a second job
Student loan deductions also look at each job on its own. GOV.UK says you only repay through jobs where pay is over your plan’s threshold, not on combined income. The 2026/27 annual thresholds are £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4), £25,000 (Plan 5) and £21,000 for postgraduate loans. If you file a Self Assessment return, the repayment is recalculated on your total income.
Accountant’s View
In practice, the clients who end up with a second employment tax bill are almost always higher-rate earners on a BR code. Nothing goes wrong on the payslips, so nobody notices until a P800 arrives. A quick check of your codes whenever your total pay changes is the simplest protection.
Two jobs tax at a glance
- 2nd job tax is charged at your normal rates; there is no special rate for a second job.
- With 2 jobs and tax codes on each, the usual tax code for two jobs is 1257L on the main job and BR on the other.
- The tax code for second job pay moves to a secondary job tax code of D0 or D1 when your main job already fills the lower bands.
- Looking for a 2nd job tax calculator? The table under “How much do you get taxed on a second job” shows the tax on common amounts.
- Tax on second job pay is checked by HMRC against your total income after the tax year ends.
Second Job vs Self-Employed Side Income
Not every 2nd job is employment. Freelance work, delivery driving or selling online usually counts as self-employment, which is not taxed through PAYE. GOV.UK’s £1,000 trading allowance means very small side earnings may not need reporting, but above that you normally register for Self Assessment and pay tax and Class 4 NI on the profit. Our sole trader tax guide covers that route in detail.
Overpaid or Underpaid Second Employment Tax? How It Gets Fixed
If the wrong codes run for part of the year, HMRC usually corrects things automatically. During the year it can change one or both tax codes. After the year ends, GOV.UK says HMRC may send a P800 or Simple Assessment letter between June and March of the following tax year. A Simple Assessment is used when you owe more than £3,000 or the tax cannot be collected through your pay.
You do not have to wait. Checking your codes and estimated income in your personal tax account lets you spot a problem with your second employment tax while it is still small.
Common Second Job Tax Mistakes
| Mistake | Why it happens | Consequence | How to avoid it |
|---|---|---|---|
| Ticking Statement A for a second job | Misreading the starter checklist | Allowance given twice, tax owed later | Choose Statement C |
| Ignoring the £50,270 line | BR code looks correct on every payslip | A P800 bill after the year ends | Ask HMRC to review your codes |
| Leaving an emergency code in place | No P45 given to the new employer | Wrong tax each pay day | Chase it after 35 days |
| Treating freelance work as a PAYE job | Both feel like a second job | Missed Self Assessment registration | Check your employment status |
Second Employment Tax FAQs
Is there a separate second employment tax?
No. Second employment tax is simply the normal Income Tax and National Insurance on pay from a second job. The rates are the same; your Personal Allowance usually just sits with your main job, so the second job is taxed from the first pound.
Why is my second job taxed at 20%?
Most second jobs are given a BR tax code, which taxes all pay from that job at the basic rate of 20%. This happens because your tax-free Personal Allowance is normally used by your main job.
How does tax work with 2 jobs?
HMRC adds both incomes together to decide your tax bands, then gives each employer a separate tax code. Each payroll deducts tax using its own code, and HMRC checks the total after the tax year ends.
What tax code should my second job have?
Usually BR if your combined income stays in the basic-rate band, D0 if your main job already uses the basic-rate band, or D1 if your income is above £125,140. Your main job normally keeps 1257L.
Do I pay National Insurance on both jobs?
Each employer works out National Insurance separately. For 2026/27 you pay 8% on weekly earnings between £242 and £967 in each job, so a small second job may attract no employee NI at all.
Do I need to tell HMRC about a second job?
Your new employer reports your pay to HMRC through payroll, but you should complete the starter checklist correctly and check both tax codes. If your codes look wrong, contact HMRC or update them through your personal tax account.
Can I get a refund if I overpaid tax on my second job?
Yes. If too much tax was deducted, HMRC may refund it through a tax code change during the year or a P800 calculation after the year ends. You can also check your position in your personal tax account.
Second Job Tax Checklist for 2026/27
- ☐ Starter checklist completed correctly (Statement C for a second job)
- ☐ Main job on 1257L (or your own code), second job on BR, D0 or D1 as appropriate
- ☐ Combined pay checked against £50,270 and £125,140
- ☐ No emergency code (W1, M1 or X) still running after 35 days
- ☐ NI deferment considered if one job pays £967 or more a week
- ☐ Second employment tax reviewed in your personal tax account each quarter
Final Verdict: Second Employment Tax in Plain English
Second employment tax is not an extra charge: it is your normal Income Tax, usually collected through a BR code because your allowance sits with your main job. Check the codes on both jobs, watch the £50,270 line and remember NI is worked out per job. Do that and a second job should bring no surprises.
Your next steps
- Check both tax codes in your HMRC personal tax account.
- Compare your combined pay with the bands in our 2026/27 rates hub.
- Want it checked? See our personal tax service, call 0116 4030595 or email info@eternityaccountants.co.uk.
Working two jobs?
Get your tax codes and tax bill checked
✓ Fixed fee, agreed before we start
✓ Tax codes on both jobs reviewed
✓ Self Assessment filed if you need one
✓ Tax codes on both jobs reviewed
✓ Self Assessment filed if you need one
See exactly what it costs, then let Eternity Accountants deal with HMRC for you.
Why trust this guide
- Written by a chartered management accountant (ACMA, MAAT) with more than 15 years’ UK practice experience.
- Bands, NI thresholds and student loan thresholds taken from GOV.UK’s 2026/27 tables.
- Tax code meanings and starter checklist rules checked against GOV.UK and HMRC’s own forms.
- Both worked examples recalculated before publishing.
- Last reviewed: October 2026.
Sources (accessed 13 October 2026)
- GOV.UK: Income Tax rates and Personal Allowances
- GOV.UK: Scottish Income Tax
- GOV.UK: Rates and thresholds for employers 2026 to 2027
- GOV.UK: What your tax code means
- GOV.UK: Emergency tax codes
- HMRC: Starter checklist
- GOV.UK: Defer National Insurance
- GOV.UK: Repaying your student loan – what you pay
- GOV.UK: Tax overpayments and underpayments
- GOV.UK: Tax-free allowances on property and trading income