Two Jobs Tax Calculator 2026/27

Working two jobs? See your combined tax position and whether you could have an underpayment at the end of the year.

£

Gets your personal allowance (tax code 1257L)

£

Typically taxed at basic rate (tax code BR)

Combined position

Total gross

£35,000

Total deductions

£6,280

Total net

£28,720

Job 1

Gross£25,000
Income tax−£2,486
NI−£994
Net£21,520

Job 2

Gross£10,000
Income tax−£2,000
NI−£0
Net£8,000

Potential tax underpayment

When your two jobs are taxed independently (as PAYE does), you may underpay by approximately £800 per year. HMRC will typically adjust your tax code or collect this after the tax year ends.

Combined take-home pay

£28,720

per year (£2,393/month)

Income Tax£4,486
National Insurance£1,794
Take-Home£28,720

Two jobs are taxed separately through PAYE, and that is where the trouble starts. The personal allowance normally sits with one employment, so the second is taxed from the first pound, usually on a BR code at 20 per cent or a D0 code at 40. National Insurance applies its thresholds to each job independently, so two jobs can each fall below the threshold and pay nothing, or each pay full contributions without the upper limit applying across the total. HMRC reconciles after the tax year, and the fix is to ask for the allowance to be split between the employments rather than waiting for a bill. A code change takes one payroll cycle to appear, so it is worth asking early in the tax year.

Written by Radif Partners

Publisher of calculators and practical guides · Finance Enthusiast

Updated for 2026/27 tax year

How Tax Works When You Have Two Jobs

Having two jobs in the UK is increasingly common, whether it's a second part-time role, freelance work alongside employment, or two part-time jobs adding up to full-time hours. The key challenge is understanding how your tax is split between the two employers, because getting this wrong can lead to large underpayments or overpayments of tax.

Each employer operates PAYE independently. They don't know about your other job, so they can only apply the tax rules to the pay they give you. HMRC coordinates between your two employments through your tax codes, but this only works correctly if your tax codes are right.

How HMRC Splits Your Tax Code

You only get one personal allowance (£12,570 in 2026/27), and HMRC must decide which employer applies it. The standard approach is:

This means if your primary job pays less than £12,570, some of your personal allowance is wasted. You can ask HMRC to split your personal allowance between both jobs to avoid overpaying tax during the year.

Splitting Your Personal Allowance

Contact HMRC to request a split. For example, if your first job pays £10,000 and your second pays £20,000, you could ask HMRC to apply:

Job 1 tax code1000L (£10,000 allowance)
Job 2 tax code257L (£2,570 allowance)
Total allowance£12,570 (same as standard)

This ensures your full allowance is used and you don't overpay tax during the year. Without the split, your second job would be taxed from the first pound at 20%.

Worked Examples

Example 1: £25,000 + £10,000 (Both in Basic Rate)

Job 1 salary£25,000
Job 2 salary£10,000
Combined salary£35,000
Personal allowance£12,570
Taxable income£22,430
Income tax (20%)£4,486
NI (Job 1): 8% × (£25,000 − £12,570)£994
NI (Job 2): 0% (below threshold per job)£0
Total take-home£29,520

Notice the NI anomaly: Job 2 pays £10,000, which is below the £12,570 NI primary threshold, so no NI is charged on it, even though your combined earnings are well above the threshold. This is because NI is calculated per employment, not on combined income.

Example 2: £40,000 + £15,000 (Crossing Higher Rate)

Job 1 salary£40,000
Job 2 salary£15,000
Combined salary£55,000
Personal allowance£12,570
Taxable income£42,430
Tax at 20% (£37,700)£7,540
Tax at 40% (£4,730)£1,892
Total income tax£9,432
NI (Job 1): 8% × £27,430£2,194
NI (Job 2): 8% × £2,430£194
Total take-home£43,180

Your combined income crosses the higher rate threshold at £50,270. HMRC will typically assign a D0 code (40% on everything) to the second job if it pushes you into the higher rate. If they don't, you'll receive a tax bill after the year ends.

Example 3: £8,000 + £8,000 (Two Low-Paying Jobs)

Job 1 salary£8,000
Job 2 salary£8,000
Combined salary£16,000
Personal allowance£12,570
Income tax£686
NI (Job 1): £0 (below £12,570 threshold)£0
NI (Job 2): £0 (below £12,570 threshold)£0
Total take-home£15,314

With two jobs below the NI threshold, you pay zero National Insurance. If you worked one job at £16,000, you'd pay £274 in NI. The two-job setup saves you NI, but check that both jobs earn above the Lower Earnings Limit (£6,708) to protect your State Pension record.

National Insurance with Two Jobs

NI is calculated separately for each employment. This creates both advantages and disadvantages:

Advantages

Disadvantages

Common Tax Code Combinations

ScenarioJob 1 CodeJob 2 CodeNotes
Standard setup1257LBRAll allowance on Job 1, Job 2 taxed at 20%
Split allowance800L457LAllowance split between both jobs
Higher rate on Job 21257LD0Job 2 taxed at 40% (when combined income is in higher band)
Underpayment collection1100LBRReduced allowance on Job 1 to collect previous underpayment

What Happens If You Don't Tell HMRC?

HMRC receives Real Time Information (RTI) from both employers every time you're paid, so they will know you have two jobs. However, automatic code adjustments can take several weeks. In the meantime:

Two Jobs and Student Loan Repayments

Student loan repayments are only deducted from your primary employment (the job with the 1257L code). Your second employer does not deduct student loan repayments. However, if your combined earnings mean you've underpaid, you'll need to make up the difference through Self Assessment or HMRC will adjust your tax code the following year.

Two Jobs and Pension Auto-Enrolment

Each employer must auto-enrol you into a workplace pension separately, provided you earn above the auto-enrolment trigger (£10,000/year). If both jobs pay above £10,000, you'll be enrolled in two separate pension schemes. If one job pays below £10,000, that employer doesn't need to auto-enrol you (though you can opt in).

Tips for Managing Two Jobs

Sources and Official References

For a complete overview of all tax rates this year, see our UK Tax Year 2026/27 guide.

A worked example: £25,000 and £12,000 side by side

Someone earning £25,000 in a main job and £12,000 in a second is taxed on £37,000 in total, but the two employers each apply their own code. The main job carries the 1257L code and its £12,570 allowance; the second is given a BR code and taxed at 20 per cent from the first pound, which produces £2,400 of tax on the smaller salary alone.

National Insurance works differently again. Each job applies the primary threshold separately, so the £12,000 job pays almost nothing while the £25,000 job pays on everything above £12,570. The combined outcome is usually slightly lower than a single £37,000 salary would produce, which is one of the rare quirks that works in the employee's favour.

The risk is at the higher end. Two jobs of £30,000 each total £60,000, crossing the higher-rate threshold that neither employer can see. Each applies basic-rate deductions, and HMRC reconciles the shortfall after the tax year with a bill or an adjusted code. Telling HMRC about the second job in advance replaces that surprise with a correct code from the start.

Frequently Asked Questions

How is tax calculated with two jobs?

Your first job typically receives your personal allowance (tax code 1257L). Your second job is usually taxed at basic rate on all income (tax code BR). HMRC combines your income for your total tax liability. Each job is taxed separately through PAYE, but the personal allowance normally sits with one of them, so the second job is taxed from the first pound, usually on a BR code at twenty per cent.

Will I underpay tax with two jobs?

If your combined income pushes you into a higher tax band, you may underpay tax during the year. HMRC will usually adjust your tax code or send you a bill after the tax year. It is possible if the combined income crosses a band that neither employer can see. HMRC reconciles this after the tax year, and the usual outcome is a bill or a code change, both avoidable by telling HMRC in advance.

Can I split my personal allowance between two jobs?

Yes. You can ask HMRC to split your personal allowance across jobs by contacting them. This can help avoid a large tax bill at the end of the year. Yes, HMRC can divide it between employments, which suits two steady part-time jobs of similar size. It is worth asking when neither job alone uses the full allowance, otherwise one job wastes it and the other overpays.

Do I pay National Insurance twice with two jobs?

Each job applies the thresholds separately, so two jobs can each fall below the primary threshold and pay nothing, or each pay full contributions without the upper earnings limit applying across both. The result can be more or less than a single job of the same total.

Should I tell HMRC about a second job?

Yes, and early. HMRC can split the personal allowance or set the right code on each employment, which avoids both the shock of a BR code on the second job and an underpayment bill after the tax year closes. A change of code takes one payroll cycle to appear.

What tax code will my second job have?

Usually BR, which taxes every pound at the basic rate because the allowance sits with the first job. D0 taxes at the higher rate and appears where the first job already uses the basic-rate band in full. NT means no tax and is rare outside specific circumstances.