How Much Can I Earn Before Tax on a Second Job UK?

Once you take a second job, your personal allowance (£12,570 for 2026/27) typically applies entirely to your main job, and your second job is taxed from £0 at the basic rate (20%) up to the higher-rate threshold. So your second-job earnings are taxed immediately — there’s no “tax-free zone” for the second job. Your main job’s tax code is usually 1257L (standard), and the second job’s is BR (Basic Rate). The combined picture means basic-rate taxpayers pay 20% on second-job earnings; higher-rate taxpayers pay 40%.

This is the full mechanics for 2026/27.

Tax codes for two jobs

When you have a single employer, your tax code is typically 1257L — telling them to apply your £12,570 personal allowance against your salary.

When you take a second job, HMRC adjusts tax codes:

• Main job: keeps the 1257L code (full personal allowance).
• Second job: gets a BR (Basic Rate) code — every pound earned is taxed at 20%, no allowance.

This is the standard arrangement for someone with main + second jobs where the main job uses all the personal allowance.

For higher earners (main job + significant second job):

• Main job: 1257L.
• Second job: D0 — every pound taxed at 40% (if your combined income is over £50,270).
• Second job: D1 — every pound taxed at 45% (if your combined income is over £125,140).

The lender HMRC chooses the second-job code based on your total income across both jobs.

How the personal allowance works with two jobs

Your personal allowance is £12,570 for the entire tax year, not per job. You only get one allowance, applied to your main job by default.

A worked example:

• Job 1 salary: £20,000.
• Job 2 salary: £5,000.
• Combined: £25,000.

Tax calculation:

• Personal allowance: £12,570 (applied to Job 1).
• Job 1 taxable: £20,000 − £12,570 = £7,430. Tax at 20%: £1,486.
• Job 2 taxable: £5,000 (no allowance left). Tax at 20%: £1,000.
• Total tax: £2,486.

In practice:

• Job 1 PAYE deducts £1,486 (with the 1257L code).
• Job 2 PAYE deducts £1,000 (with the BR code).

The total matches because HMRC has correctly assigned the personal allowance to the main job.

What if my main job pays below the personal allowance?

If your main job pays less than £12,570/year, the personal allowance isn’t fully used. The unused portion could apply to your second job.

You can ask HMRC to split your personal allowance between two jobs. This is useful for:

• A main job paying £8,000/year (uses £8,000 of allowance).
• A second job paying £6,000/year (could use the remaining £4,570 of allowance).
• Without splitting: Job 2 taxes the full £6,000 at 20%. With splitting: £4,570 of Job 2 is tax-free, only £1,430 is taxed.

To request a split, contact HMRC’s personal tax helpline (0300 200 3300) or log into your personal tax account online.

Common scenarios

Scenario 1: Two PAYE jobs, both modest income

Job 1: £18,000. Job 2: £8,000.

• Personal allowance £12,570 covers Job 1’s first £12,570.
• Job 1 taxable: £5,430 at 20% = £1,086.
• Job 2 taxable: £8,000 at 20% = £1,600.
• Total tax: £2,686.

Scenario 2: Main career job + weekend side job

Job 1: £35,000 (main). Job 2: £6,000 (Saturday shift work).

• Personal allowance used on Job 1.
• Job 1 taxable: £22,430 at 20% = £4,486.
• Job 2 taxable: £6,000 at 20% = £1,200.
• Total: £5,686.

Scenario 3: Main job + second job pushing into higher rate

Job 1: £45,000. Job 2: £8,000.

• Personal allowance on Job 1.
• Job 1 in basic rate: £45,000 − £12,570 = £32,430 at 20% = £6,486.
• Job 2 falls partly in basic rate band (up to £50,270), partly higher rate.
• £5,270 of Job 2 at 20% = £1,054.
• £2,730 of Job 2 at 40% = £1,092.
• Total tax on Job 2: £2,146.

Job 2’s tax code may be D0 to pre-empt the higher-rate portion.

What about National Insurance on a second job?

NI is calculated per job, not combined. Each job is assessed separately.

For 2026/27 Class 1 NI:

• 0% below £12,570.
• 8% main rate on £12,570–£50,270 (per job).
• 2% above £50,270 (per job).

A worked example with two jobs:

• Job 1: £20,000.
  • NI: (£20,000 − £12,570) × 8% = £594.
• Job 2: £5,000.
  • NI: £0 (below £12,570 primary threshold per job).
• Total NI: £594.

This is a significant tax-planning quirk. Splitting income across two jobs can reduce NI because each job has its own NI threshold.

For someone earning £40,000 in one job:

• NI: (£40,000 − £12,570) × 8% = £2,194.

Same person earning £20,000 + £20,000 across two jobs:

• Job 1 NI: (£20,000 − £12,570) × 8% = £594.
• Job 2 NI: (£20,000 − £12,570) × 8% = £594.
• Total NI: £1,188.

Saving £1,006 of NI just from the split structure.

This is rare in practice — most people don’t have two well-paying PAYE jobs — but it’s real for those who do.

Tax codes that go wrong

Common errors with two-job tax codes:

1. Both jobs get 1257L — you’re effectively double-allowed the personal allowance. Tax is underpaid throughout the year, leading to a year-end bill via Self Assessment or P800.

2. Second job has BR but should have D0/D1 — for higher earners, BR understates the tax owed. You under-pay during the year and owe more at reconciliation.

3. Tax code doesn’t update when you take a second job — HMRC may take 1–3 months to adjust. The first salary from Job 2 is sometimes mis-taxed.

The fix: check your tax codes on the HMRC personal tax account. Notify HMRC of any new employment promptly.

What if my second job is self-employed?

If your second job is self-employed (freelancing, contracting, etc.), the rules are different. See:

• Do I pay tax on freelance income alongside a full time job?
• Do I need to pay tax on my side hustle UK?

In short:

• PAYE on Job 1 deducts tax based on your tax code.
• Self-employment income is declared via Self Assessment.
• Combined income is taxed in the same way as PAYE-on-PAYE, but the self-employment portion attracts Class 4 NI (6% / 2%) instead of Class 1 NI.

Internal links

• Do I pay tax on freelance income alongside a full time job?
• Do I need to pay tax on my side hustle UK?
• What is the personal allowance and how does it work?

---

This guide is information, not regulated financial advice. Tax codes change with HMRC’s reassessments — confirm via your personal tax account if you have multiple jobs.