Answers · UK 2025/26

How is a second job taxed in the UK?

Your second job is normally taxed with code BR (Basic Rate — 20% on everything), assuming your main job uses up your full Personal Allowance. If both jobs combined push you into the higher-rate band, you may end up underpaid or overpaid — HMRC reconciles annually.

Last updated: 6 April 2025Last reviewed: 6 April 2025How we verify

Full answer

UK second job tax treatment 2025/26. Your main job (first P45 / longest-running employment) is usually allocated the 1257L tax code, giving full £12,570 Personal Allowance. Your second job is assigned BR (Basic Rate — 20% on all earnings) or D0 (40%) or D1 (45%) depending on expected total income. NI: each job is separately assessed against the £12,570 Primary Threshold — so you DO benefit from two PTs annually... but HMRC reconciles via P800 if total NI exceeds the upper limit. Common issues. (1) Both jobs under £12,570 each — you may overpay tax because only one gets the Personal Allowance. Solution: HMRC reconciliation at year-end, or contact HMRC mid-year to split the allowance. (2) Combined income above £50,270 — second job at BR (20%) when really should be 40% — leads to underpayment. HMRC issues a Simple Assessment to claw it back, or adjusts your code. (3) Self-employment alongside employment — declared via Self Assessment, tax billed at year-end. Action: log into Personal Tax Account, declare both jobs, and request the right code split if helpful.