How is a second job taxed in the UK?

In the UK, your second job is taxed under the assumption that your first job already utilizes your entire £12,570 Personal Allowance. Because of this, HMRC typically issues a BR (Basic Rate) tax code to your second employer, which applies a flat 20% Income Tax from the first pound you earn on that job. If your combined annual income from both jobs exceeds £50,270, you may need to pay 40% tax on the portion of your second job that crosses the Higher Rate threshold.

Can I split my Personal Allowance between two jobs?

Yes. If you work two part-time jobs and earn less than £12,570 in your main job, you can ask HMRC to split your Personal Allowance. For example, if Job 1 pays £8,000 and Job 2 pays £4,570, you can allocate £8,000 of your allowance to Job 1 and £4,570 to Job 2. This prevents your second employer from automatically deducting 20% tax from your wages under a BR code, meaning you keep more of your earnings immediately rather than waiting for a tax refund.

Do you pay more tax overall if you have two jobs?

No, having two jobs does not increase your total Income Tax liability. In the UK, your total annual Income Tax is calculated based on your combined annual earnings, regardless of how many jobs you have. If you earn £40,000 from one job or £20,000 from two separate jobs, your total annual Income Tax at the end of the year will be exactly the same.

How does National Insurance work when you have two salaries?

National Insurance (NICs) is calculated independently for each job, rather than on your combined income. In the 2026/27 tax year, you receive a separate Class 1 Primary Threshold (£12,570 per year) for each employment. This means you do not pay any National Insurance on either job until your earnings from that specific employer exceed £242 per week. This independent calculation can sometimes result in paying less NIC overall than if you earned the same total salary from a single job.

What tax code is used for a second job in the UK?

The most common tax code for a second job is BR, which stands for Basic Rate and applies a flat 20% tax. If your combined income exceeds the Higher Rate threshold (£50,270), HMRC may issue a D0 code, which taxes all earnings on the second job at 40%. For additional rate earners, a D1 code is used to tax the second job at 45%. If your primary job doesn't use your full allowance, HMRC may issue split codes like 800L and 457L.

Will I get an unexpected tax bill at the end of the year if I work two jobs?

Yes, this is a common risk if your combined income crosses the £50,270 Higher Rate threshold but your second employer continues to tax you at the basic rate (BR code). Since both employers operate independently, they do not know about your other income. At the end of the tax year, HMRC will calculate your total tax liability, and if you haven't paid enough higher-rate tax, you will receive a tax calculation letter (P800) and a bill for the underpaid tax.

How do I notify HMRC about starting a second job?

When you start a second job, you must complete the new employer's starter checklist. In the checklist, you will select 'Statement C', which declares that you have another job or receive a state/occupational pension. This ensures your new employer applies the BR code (or another appropriate second-job code) rather than the standard 1257L code, preventing you from receiving double personal allowances and a tax bill later.

Are student loans deducted from both jobs?

Yes, student loan repayments are deducted from both jobs independently. If your earnings in either job exceed the weekly or monthly threshold for your plan, that employer will deduct 9% (or 6% for Postgraduate) of the earnings above the threshold. HMRC will consolidate these repayments at the end of the year, but you will not get a refund unless your combined annual earnings are below the statutory threshold.

Two Salary Calculator 2026/27

Two Salary & Household Calculator

✓ Verified for 2026/27

Salary Settings

Calculation Mode

Tax Region

First Salary / Person 1

Annual Salary 1

Pension 1 (%)

Student Loan 1

Second Salary / Person 2

Annual Salary 2

Pension 2 (%)

Student Loan 2

Combined Gross

£75,000

total household income

Combined Net

£58,200

take-home pay

Monthly Household Net

£4,850

per month

Effective Tax Rate

22.4%

total deductions

Combined Breakdown

Total Gross Income £75,000

Total Pension £3,750

Total Income Tax £9,120

Total National Insurance £3,930

Total Student Loan £0

Combined Net Pay £58,200

Net Pay 77%

Tax 12%

NI 5%

Person / Job 1

Gross: £45,000

Net Take-Home: £35,000

Deductions: £10,000

Person / Job 2

Gross: £30,000

Net Take-Home: £23,200

Deductions: £6,800

🛡️

Verified for Accuracy (2026/27 Tax Year)

Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.

How We Calculated This

Primary Job Coding and Allowance Allocation: The calculator identifies the income from your primary job. By default, it allocates your entire standard £12,570 Personal Allowance to this job (indicated by tax code 1257L). Tax is calculated at 20% on taxable income up to £50,270, and 40% on any excess.
Secondary Job Coding: Because your Personal Allowance is fully utilized by your primary job, your second job is taxed from the very first pound. The calculator applies the standard HMRC codes: BR (Basic Rate, taxing everything at 20%), D0 (Higher Rate, taxing everything at 40%), or D1 (Additional Rate, taxing everything at 45%).
Personal Allowance Splitting: If you request to split your Personal Allowance between your two jobs (for example, allocating £8,000 to Job 1 and £4,570 to Job 2), the calculator adjusts the tax-free thresholds for both jobs. This prevents overpaying tax during the year if both jobs pay less than £12,570.
Combined Income Tax Computation: The calculator sums the gross salaries of both jobs to determine your total taxable income. It then computes your actual combined annual tax liability across the 2026/27 bands (Basic Rate 20% up to £50,270, Higher Rate 40% between £50,270 and £125,140, and Additional Rate 45% above £125,140). This handles scenarios where your combined income pushes you into the higher-rate bracket, even if neither job does individually.
Independent National Insurance Calculations: Unlike Income Tax, Class 1 National Insurance Contributions (NICs) are calculated independently for each job (per employer). The calculator applies a separate Primary Threshold (£12,570 per year / £242 per week) to each job. You pay 8% NICs on earnings between the Primary Threshold and the Upper Earnings Limit (£50,270) for each job, and 2% on the excess. This independent calculation can sometimes result in paying less NIC overall than if you earned the same total salary from a single job.
Deductions Aggregation and Net Take-Home: The calculator sums the Income Tax and National Insurance deductions from both jobs. It then subtracts this combined total from your combined gross income to show your final combined monthly and weekly take-home pay.

Real-World Examples

Detailed Math for Primary Job (£30,000) and Second Job (£15,000) (No Split Allowance)

This scenario details the calculations for an individual working two jobs with gross salaries of £30,000 and £15,000 respectively. The primary job has the standard 1257L tax code, and the second job has the standard BR tax code (20% flat tax). No pension or student loans are deducted.

Step 1: Calculate Deductions for Job 1 (Gross = £30,000.00):
        - Tax Code = 1257L (receives full £12,570.00 Personal Allowance)
        - Taxable Income = £30,000.00 - £12,570.00 = £17,430.00
        - Income Tax (20% Basic Rate) = £17,430.00 * 0.20 = £3,486.00
        - Employee Class 1 NICs (8% above £12,570) = (£30,000.00 - £12,570.00) * 0.08 = £1,394.40
        - Total Job 1 Deductions = £3,486.00 + £1,394.40 = £4,880.40
Step 2: Calculate Deductions for Job 2 (Gross = £15,000.00):
        - Tax Code = BR (20% flat tax on all earnings, no Personal Allowance)
        - Taxable Income = £15,000.00
        - Income Tax (20% flat rate) = £15,000.00 * 0.20 = £3,000.00
        - Employee Class 1 NICs (8% above £12,570 limit for this employer):
          NICable Earnings = £15,000.00 - £12,570.00 = £2,430.00
          Class 1 NIC Due = £2,430.00 * 0.08 = £194.40
        - Total Job 2 Deductions = £3,000.00 + £194.40 = £3,194.40
Step 3: Calculate Combined Totals:
        - Combined Gross Salary = £30,000.00 + £15,000.00 = £45,000.00
        - Combined Income Tax = £3,486.00 + £3,000.00 = £6,486.00
        - Combined National Insurance = £1,394.40 + £194.40 = £1,588.80
        - Total Combined Deductions = £6,486.00 + £1,588.80 = £8,074.80
        - Combined Annual Net Take-Home Pay = £45,000.00 - £8,074.80 = £36,925.20
        (This equates to a combined monthly take-home pay of £3,077.10.)

Detailed Math for Primary Job (£40,000) and Second Job (£18,000) (Crossing the Higher Rate Threshold)

This scenario details the calculations when combined earnings (£58,000) cross the £50,270 Higher Rate threshold. The primary job is on 1257L, and the second job has a BR code initially, but the higher rate liability is reconciled.

Step 1: Calculate Deductions for Job 1 (Gross = £40,000.00):
        - Taxable Income = £40,000.00 - £12,570.00 = £27,430.00
        - Income Tax (20% Basic Rate) = £27,430.00 * 0.20 = £5,486.00
        - Employee Class 1 NICs (8% above £12,570) = (£40,000.00 - £12,570.00) * 0.08 = £2,194.40
Step 2: Calculate Combined Income Tax Liability:
        - Combined Gross Earnings = £40,000.00 + £18,000.00 = £58,000.00
        - Combined Taxable Income = £58,000.00 - £12,570.00 = £45,430.00
        - Tax on Basic Band (£37,700.00) at 20% = £7,540.00
        - Tax on Higher Band (£45,430.00 - £37,700.00 = £7,730.00) at 40% = £3,092.00
        - Total Combined Annual Tax Due = £7,540.00 + £3,092.00 = £10,632.00
Step 3: Calculate Income Tax for Job 2:
        - Tax Paid on Job 1 = £5,486.00
        - Remaining Tax Due on Job 2 = £10,632.00 - £5,486.00 = £5,146.00
          (Note: If Job 2 used a flat BR code, £3,600.00 tax would be deducted at source, leaving a tax underpayment of £1,546.00 to be paid via Self Assessment or a coding adjustment.)
Step 4: Calculate Employee Class 1 NICs for Job 2 (Gross = £18,000.00):
        - NICs are calculated independently per employer.
        - NICable Earnings = £18,000.00 - £12,570.00 = £5,430.00
        - Class 1 NIC Due (8%) = £5,430.00 * 0.08 = £434.40
Step 5: Calculate Combined Results:
        - Combined Gross Salary = £58,000.00
        - Combined Tax Due = £10,632.00
        - Combined National Insurance = £2,194.40 + £434.40 = £2,628.80
        - Total Combined Deductions = £10,632.00 + £2,628.80 = £13,260.80
        - Combined Annual Net Take-Home Pay = £58,000.00 - £13,260.80 = £44,739.20
        (This equates to a combined monthly take-home pay of £3,728.27.)

Related Calculators

Frequently Asked Questions & Detailed Tax Guide

How are two salaries taxed in the UK?

If you hold two or more jobs in the UK, HMRC treats your total combined income as a single pool for personal tax calculations. However, because employers run payroll independently, HMRC allocates your tax-free Personal Allowance (£12,570) to your main job (usually the one with the highest earnings, marked with code 1257L). Your second job will receive a flat-rate tax code (such as **BR** for 20% basic rate, **D0** for 40% higher rate, or **D1** for 45% additional rate), meaning every pound is taxed from the start.

How does National Insurance apply to multiple jobs?

Unlike Income Tax, National Insurance (NI) is calculated per employment, not cumulatively. Each job gets its own Primary Threshold (£242/week or £1,047.50/month). If you work two jobs earning £10,000 each, you will pay **no National Insurance**, whereas a single job earning £20,000 would trigger an NI charge. This is a legitimate structural saving for multi-job holders.

Tax Expert Pro-Tips: Splitting Your Tax Code

David Vance, CTA FCA, recommends: “If your main job pays less than £12,570, you should contact HMRC to split your tax code between your two employers (e.g. allocating £8,000 of allowance to Job A and £4,570 to Job B). If you don’t do this, you will pay too much tax on Job B and will have to wait until the end of the year to receive a refund.”

Legislative References

Income Tax (PAYE) Regulations 2003 – Allocation of tax codes.
Social Security Contributions and Benefits Act 1992 – National Insurance parameters.