Noticed a chunk of your second job’s pay vanishing before it reaches your bank? You’re not being punished. Second employment tax is simply ordinary Income Tax and National Insurance applied through a different tax code, and once you see how that code works, the deductions make sense.
There is no separate second employment tax in the UK. Each job gets its own tax code. Your £12,570 Personal Allowance normally sits with your main job, so the second job is usually taxed from the first pound: 20% on a BR code, 40% on D0 or 45% on D1. National Insurance is worked out separately for each job.
- Second employment tax uses the same 2026/27 rates as any other job; only the tax code changes.
- BR, D0 and D1 codes collect tax on second job pay at a flat rate because the allowance is used elsewhere.
- If your main job pays under £12,570, you can ask HMRC to move unused allowance to the second job.
- Each employer checks National Insurance, student loan and pension thresholds on its own pay only.
- A second job alone does not mean a Self Assessment return; self-employed side income usually does.
- What is second employment tax?
- Do you get taxed more on a second job?
- 2026/27 tax bands for two jobs
- Second employment tax codes
- Splitting your Personal Allowance
- How much second employment tax will I pay?
- National Insurance on two jobs
- Student loans, pensions and benefits
- Second job vs self-employed side income
- Overpaid or underpaid tax
- Common mistakes
- FAQs
- Final Verdict
What Is Second Employment Tax?
“Second employment tax” is the everyday name for the tax taken from a job that isn’t your main one. HMRC has no special levy for it. The same Income Tax bands apply to all your employment income added together; the difference is in how each payroll collects its share.
Under PAYE, every employer receives its own tax code for you. HMRC issues a separate code for each job or pension, and each payroll only sees its own figures. Neither employer knows what the other pays you, so the code does the joining up.
This guide is for anyone working two or more PAYE jobs, plus people mixing employment with a small business. If you’re also weighing up whether to work for yourself, our guide to freelance vs self-employed status explains the difference.
Do You Get Taxed More on a Second Job?
Not in the overall sense. When it comes to 2 jobs and tax, across the year your total tax depends on your combined income, not on how many employers you have. What changes is timing. Because the second payroll gets no allowance, tax starts on the first pound, which feels heavier than your main payslip.
When you start, the new employer asks for your P45 or, if you’re still in your first job, a PAYE starter checklist. Tick the statement saying you have another job. Skipping it is the most common reason second employment tax goes wrong at the start.
Emergency codes on a new second job
Until HMRC sends the right code, payroll may use an emergency code ending W1, M1 or X, or the code 0T, which gives no allowance at all. These usually correct themselves within a few pay periods once HMRC has your details.
2026/27 Tax Bands for Two Jobs
These are the Income Tax rates for 6 April 2026 to 5 April 2027 outside Scotland. Add both salaries together and compare the total with the bands. Your second employment tax for the year is worked out on that combined figure, not job by job.
| 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% |
Above £100,000 of adjusted net income, the Personal Allowance shrinks by £1 for every £2 over, reaching nil at £125,140. Scottish taxpayers have different bands; see Scottish Income Tax on GOV.UK.
Second Employment Tax Codes: BR, D0, D1, 0T and NT
The code on your second payslip tells you how that employer is collecting second employment tax. HMRC’s tax code meanings are summarised below.
| Code | What it does | Typical use |
|---|---|---|
| 1257L | Gives the full £12,570 allowance | Main job |
| BR | All pay taxed at 20% | Second job, combined pay under £50,270 |
| D0 | All pay taxed at 40% | Second job when the main job already fills the basic band |
| D1 | All pay taxed at 45% | Second job when income passes £125,140 |
| 0T | No allowance, normal bands | Allowance used up, or employer lacks details |
| NT | No tax deducted | Rare, set by HMRC only |
When your combined pay crosses £50,270
A BR code assumes everything in the second job falls in the basic band. If the two salaries together go past £50,270, part of the second job should really be taxed at 40%. HMRC may switch you to D0 or adjust your main code; if it doesn’t, the gap shows up as an underpayment later.
How to Split Your Personal Allowance Between Two Jobs
Splitting is one of the few ways to cut second employment tax during the year instead of waiting for a refund. It helps when your main job pays less than £12,570, leaving allowance unused while the second job is taxed on a BR code. HMRC can share the allowance between both codes.
- Sign in to your HMRC online account or the HMRC app. You’ll need your Government Gateway or One Login details; see what a Government Gateway user ID is.
- Open the tax code section and check both jobs are listed with the right employers.
- Update the estimated pay for each job so HMRC sees your true annual figures.
- Ask HMRC to move the unused allowance, using the update your tax code route.
- Watch for new codes on both payslips, normally within a pay period or two.
- Find the tax code on each payslip.
- Add both expected annual salaries together.
- Compare the total with the bands: under £12,570, under £50,270, or above.
- Match the result to the code table. If they disagree, update your details in the HMRC app.
How Much Second Employment Tax Will I Pay? Worked Examples
How much do you get taxed on a second job? It depends on the combined total. The second job tax rate on your payslip (20%, 40% or 45%) is only half the story. The figures below use 2026/27 rates for England, Wales and Northern Ireland and are rounded to the nearest pound. For a quick estimate with your own numbers, try our second job tax calculator.
Priya’s main job uses 1257L, so it deducts £5,086. Her second job is on BR and deducts £3,600, a total of £8,686. On £56,000, the correct bill is £9,832: £7,540 at 20% plus £2,292 at 40% on the £5,730 above the basic band. She is £1,146 short unless HMRC moves her to D0 or adjusts a code.
Together Tom earns £110,000, which is £10,000 over the taper point, so his allowance drops by £5,000 to £7,570. Taxable income is £102,430: £37,700 at 20% (£7,540) plus £64,730 at 40% (£25,892), giving £33,432. His second job would sit on D0.
Grace’s main job uses only £9,000 of her allowance. On BR, her second job would deduct £1,200. Her real bill on £15,000 is just £486 (£2,430 at 20%). Splitting the allowance, with the spare £3,570 moved to the second job (code 357L), fixes this from the next payday.
National Insurance on Two Jobs
National Insurance is the other half of second employment tax, and it doesn’t combine your jobs. Each employer applies the 2026/27 Class 1 thresholds to its own pay: 8% on weekly earnings between £242 and £967, and 2% above £967.
So two smaller jobs can mean less NI than one bigger job. Earn £300 a week in one job and £200 in another, and you pay £4.64 a week (8% of £58). Earn the same £500 from one employer and it would be £20.64.
Deferring National Insurance
If one job pays £967 or more a week and another pays at least £242, you can apply to defer National Insurance using form CA72A. You then pay 2% on the deferred job’s earnings between £242 and £967. For 2026/27, HMRC must receive the form by 14 February 2027.
Student Loans, Pensions and Benefits With Two Jobs
Second employment tax isn’t the only deduction worked out job by job. Three others follow the same pattern.
Student loans: repayments come only from a job that pays above your plan’s threshold on its own, not from your combined income. GOV.UK lists the Plan 2 threshold as £29,385 a year (£2,448 a month).
Workplace pensions: each employer decides on auto-enrolment using only its own pay. You qualify if you’re aged 22 to State Pension age and earn at least £10,000 a year from that employer. Below that, you can usually still ask to join. Working 2 jobs at £8,000 each may mean no automatic pension in either.
Universal Credit: once you’re past any work allowance, your payment falls by 55p for every £1 you earn. Report earnings from every job, because the reduction is based on what you earn in total.
Second Job vs Self-Employed Side Income
If your second income comes from your own work rather than an employer, PAYE doesn’t apply and there’s no second employment tax code. You report the profit through Self Assessment instead.
- Gross trading income of £1,000 or less is covered by the trading allowance and normally needn’t be reported.
- Above that, register for Self Assessment by 5 October after the tax year ends. See how to register as self-employed with HMRC.
- Class 4 NI is 6% on profits between £12,570 and £50,270, then 2%.
- Making Tax Digital for Income Tax counts only self-employment and property income. It applies from April 2026 above £50,000, from April 2027 above £30,000 and from April 2028 above £20,000 (GOV.UK).
Leon’s salary uses his allowance, so his £8,000 profit is taxed at 20%: £1,600. With profit under £12,570, no Class 4 NI is due. He files and pays by 31 January; check the dates in when Self Assessment returns are due.
Overpaid or Underpaid Tax: How HMRC Fixes It
If your second employment tax has gone wrong, HMRC can correct a code during the year and ask your employer to refund the difference through your pay, usually on your next or following monthly payday. After 5 April, HMRC reviews the year and may write to you, often with a P800 calculation. Small underpayments are normally collected through a future tax code rather than as a lump sum.
HMRC never asks for bank details by text or email. Check any refund message by signing in through GOV.UK or the official HMRC app.
Common Mistakes With Two Jobs
Most two jobs tax problems come from a handful of avoidable slips.
| Mistake | HMRC consequence | How to avoid it |
|---|---|---|
| Wrong starter checklist box | Allowance given twice; tax owed later | Declare the other job |
| Ignoring the £50,270 line | Underpayment collected via your code | Update pay estimates in the HMRC app |
| Never splitting a spare allowance | Overpaid tax until year end | Ask HMRC to move it |
| Treating side-business income as PAYE | Late registration penalties | Register by 5 October |
The second payslip is rarely the problem on its own; the combination is. Before the tax year ends, look at both codes side by side with your expected total pay. A five-minute check in the HMRC app usually prevents a P800 surprise the following summer.
Second Employment Tax FAQs
Is there a separate second employment tax?
No. Second employment tax is ordinary Income Tax and National Insurance. The second job just uses a different tax code because your allowance is usually used by the main job.
What does a BR tax code on a second job mean?
It means every pound from that job is taxed at 20%, because your Personal Allowance has been given to your main job.
What tax code should my second job have?
The usual tax code for second job pay is BR. D0 applies once your main job fills the basic band, and D1 above £125,140. A split allowance gives a number code instead.
How does tax work with 2 jobs?
HMRC gives each employer its own code. Your main job usually gets the allowance, and 2nd job tax is collected at a flat rate. Your new employer tells HMRC about the job through payroll once you complete the starter checklist.
Do I pay National Insurance on both jobs?
Only on each job’s weekly pay above £242. Each employer checks its own pay separately.
Does a second job mean I need a tax return?
Not if both jobs are PAYE. Self-employed income over £1,000 generally does mean a return.
Will both employers enrol me in a pension?
Only those paying you at least £10,000 a year, if you’re aged 22 to State Pension age. You can usually ask to join otherwise.
Can I claim back overpaid tax on a second job?
Yes. HMRC refunds it through your pay once your code is corrected, or after the year ends, usually with a P800.
Final Verdict: Second Employment Tax
Second employment tax isn’t an extra charge; it’s normal tax collected through a code like BR or D0. Add your salaries together, compare the total with the 2026/27 bands and check both codes. If the result doesn’t match, update your details with HMRC early rather than waiting for a year-end letter.
- Check both tax codes: check your Income Tax for the current year on GOV.UK.
- Estimate your take-home pay: use the Merin second job tax calculator.
- Running a side business too? Check the Self Assessment registration deadline.
- Written by the MerinTaxReturn Editorial Team and reviewed by a chartered management accountant (ACMA, MAAT) with more than 15 years’ UK practice experience.
- Every figure checked against HMRC’s published 2026/27 rates and GOV.UK guidance.
- Covers PAYE, National Insurance, student loans, pensions, benefits and self-employed side income.
- Last reviewed: October 2026.
Director, Eternity Accountants Ltd
Lecturer, Nottingham Trent University
15+ years’ UK practice
CMA
MAAT
CIPFA (Affiliate)
- GOV.UK – Income Tax rates and Personal Allowances
- GOV.UK – Rates and allowances: National Insurance contributions
- GOV.UK – Tax codes if you have more than one job
- GOV.UK – What your tax code means
- GOV.UK – If you’ve paid too much or too little tax
- GOV.UK – Defer your National Insurance
- GOV.UK – Repaying your student loan: what you pay
- GOV.UK – Universal Credit: how your wages affect your payments
- GOV.UK – Making Tax Digital for Income Tax: if and when
- GOV.UK – Tax-free allowances on property and trading income
- MoneyHelper – I have more than one job: how does this affect my pension?