Having two jobs does not mean you pay more tax in total — but the wrong tax codes can cause you to overpay during the year. Understanding how HMRC splits your Personal Allowance between jobs, and what to do if your codes are wrong, can prevent an unwanted tax bill or reclaim money you are owed. Here is how it works in 2026/27.
Key Rates 2026/27
| Tax band | Income range | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
You have one set of these bands across all your income, regardless of how many employers you work for.
How Tax Codes Work Across Two Jobs
HMRC assigns a tax code to each employer separately. The tax code tells the employer how much Personal Allowance to apply and which rate to use.
Typical setup with two jobs:
| Job | Typical tax code | What it means |
|---|---|---|
| Main job | 1257L | Full Personal Allowance (£12,570) applied here |
| Second job | BR | All income taxed at 20% — no further allowance |
| Second job (if main job fills basic rate band) | D0 | All income taxed at 40% |
Why this makes sense: Your main job uses the full £12,570 allowance. The second job has no remaining allowance to apply, so every pound from it is taxed at the basic rate (20%) or higher rate (40%) if applicable.
Worked Example: Two Jobs, Both in Basic Rate Band
Rachel works full-time as a nurse earning £32,000/year and takes a part-time weekend job as a fitness instructor earning £8,000/year.
Main job (1257L tax code):
- Gross: £32,000
- Tax-free via Personal Allowance: £12,570
- Taxable: £19,430 × 20% = £3,886 income tax
Second job (BR tax code):
- Gross: £8,000
- All taxed at 20%: £8,000 × 20% = £1,600 income tax
Total combined income: £40,000 — still within the basic rate band (under £50,270) Total tax paid: £3,886 + £1,600 = £5,486 — correct amount, no overpayment
Worked Example: Combined Income Crosses £50,270
Tom has a main job paying £45,000 and a second job paying £10,000.
Combined income: £55,000 — this crosses the higher rate threshold.
Income breakdown:
- £45,000 main job — coded 1257L: taxable income after allowance = £32,430 × 20% = £6,486
- £10,000 second job — coded BR: first £5,000 is still in basic rate band (£50,270 − £45,000 = £5,270 remaining basic rate band), next £4,730 should be at 40%
HMRC will typically adjust codes during the year once they detect the higher combined income. If not corrected during the year, Tom may receive a tax bill or need to file Self Assessment.
When You Might Overpay Tax
The most common overpayment scenario is when your main job income is below the Personal Allowance. For example, if you earn £8,000 at job 1 and £6,000 at job 2:
- Job 1 uses 1257L — only £8,000 of the £12,570 allowance is used
- Job 2 uses BR — all £6,000 taxed at 20% = £1,200 tax deducted
- But £4,570 of unused allowance remains — enough to cover the £6,000 second job income entirely
In this case, you are owed a refund. HMRC will either adjust your code during the year, or refund at year end. You can speed this up by contacting HMRC to ask them to split your allowance across both jobs.
How to Fix Your Tax Code
If you believe your second job tax code is causing you to overpay:
- Check your payslips — your tax code appears on each payslip
- Log in to your Personal Tax Account at gov.uk/check-income-tax to see current codes
- Contact HMRC on 0300 200 3300 and ask them to:
- Split the Personal Allowance across both jobs, OR
- Apply the allowance entirely to the lower-earning job if appropriate
- HMRC will issue updated P6 forms to both employers
Changes typically take effect within 1–2 pay periods.
National Insurance on Two Jobs
NI is calculated per job, not across combined income. Each employment is assessed separately:
- Primary threshold 2026/27: £12,570 (annual)
- NI rate: 8% on earnings between £12,570 and £50,270, then 2% above
If each job earns below the Primary Threshold separately (e.g. both pay £10,000), you pay no NI on either. If combined income would be above the threshold, you still benefit — you cannot overpay NI due to multiple jobs in the way you can with income tax.
Do You Need to File Self Assessment?
You generally do not need to file Self Assessment purely because you have two jobs — HMRC handles the reconciliation automatically through PAYE. However, you must register for Self Assessment if:
- Your combined income exceeds £150,000 (high income threshold)
- You have income from self-employment alongside your employment(s)
- You receive a notice from HMRC to file
See our income tax guide, how to check and fix your tax code, and how to avoid the Higher Income Child Benefit Charge.