A second job often looks like it's being taxed more heavily than the first. Usually it isn't: it's being taxed at the rate that applies to the top slice of your income, because your first job has already used your tax-free allowance. This guide explains how it works for 2026 to 2027, with examples. If your extra income is self-employed rather than a second job, read side hustle tax UK instead.
How tax works with two jobs
Each employer takes tax through PAYE using a tax code from HMRC.
- Your main job usually gets your personal allowance of £12,570, with a code like 1257L.
- Your second job usually gets no allowance, so all of its pay is taxed at your top rate.
Added together, you should pay the same tax as if all your pay came from one job.
Second job tax codes
| Code | What it means |
|---|---|
| 1257L | Your £12,570 personal allowance, usually on your main job |
| BR | All pay from this job taxed at 20% (basic rate) |
| D0 | All pay from this job taxed at 40% (higher rate) |
| D1 | All pay from this job taxed at 45% (additional rate) |
Rates shown are for England, Wales and Northern Ireland. Scottish codes and rates differ.
Worked examples
Main job £30,000, second job £8,000. The main job uses the personal allowance. The second job is on BR: £8,000 × 20% = £1,600 tax. That's correct, because all of this income falls in the basic-rate band.
Main job £48,000, second job £6,000. Total pay is £54,000, over the £50,270 higher-rate threshold. The main job leaves £2,270 of the basic-rate band, so the right tax on the second job is £2,270 × 20% (£454) plus £3,730 × 40% (£1,492): £1,946. A BR code would only take £1,200, leaving about £746 underpaid. HMRC usually fixes this by changing a tax code, sometimes to D0 on the second job, or collects it later.
Two part-time jobs, £9,000 and £7,000. Total pay is £16,000, so the right tax is £3,430 × 20%: £686. But if the first job gets the whole allowance and the second is on BR, you'd pay £1,400 on the second job, overpaying by about £714. You can ask HMRC whether your personal allowance can be split between the two jobs, so less tax comes off the second one during the year.
National Insurance on two jobs
National Insurance works differently from tax. Each job is looked at on its own:
- For 2026 to 2027, you pay employee National Insurance on earnings over £242 a week in each job, if the jobs are with different employers. Two jobs with the same employer are usually added together.
- If one job pays under that, there's no National Insurance on it, even if your total is higher.
So two small jobs can mean less National Insurance than one bigger job.
Check your tax code
You can see your tax codes in the HMRC app or your personal tax account. Check them when you start a second job, and tell HMRC if:
- the wrong job is getting your personal allowance
- you're on an emergency code that hasn't been corrected
- your pay has changed a lot, which may mean you need a different code
Second job or side hustle?
- Second job: you're an employee, and tax comes off through PAYE. The £1,000 trading allowance doesn't apply.
- Side hustle: you're self-employed, for example selling things you bought to sell or doing freelance work. The first £1,000 is covered by the trading allowance, and over that you register as self-employed and pay through Self Assessment.
Many people have both. Each is taxed its own way, and the totals are added together to work out your rate. Also selling or freelancing? Read how side hustle tax works.