Enter Your Two Jobs
HMRC typically assigns the BR (Basic Rate) code to a second job, meaning 20% tax from the first pound. Your P45 or tax code notice will confirm.
For guidance only. Actual deductions depend on your exact tax codes, NI letters and employer arrangements.
How Are Two Jobs Taxed in the UK?
When you have two jobs, HMRC uses the PAYE (Pay As You Earn) system to collect tax from each employer separately — but your Personal Allowance (£12,570 for 2025/26) can only be applied once. Here is how it works in practice.
Personal Allowance Goes to Your Main Job
HMRC allocates your entire Personal Allowance to your primary employment (Job 1), giving it a standard tax code such as 1257L. This means the first £12,570 you earn from Job 1 is tax-free. Your second job receives a BR (Basic Rate) tax code by default, so every pound from Job 2 is taxed at 20% with no tax-free threshold.
What Does the BR Tax Code Mean?
BR stands for Basic Rate. Your second employer deducts 20% income tax on all earnings from that job, starting from the very first pound. This is correct if your combined income from both jobs keeps you within the basic-rate band (up to £50,270 total). If your combined income pushes you into the higher-rate band (above £50,270), HMRC will issue an adjusted tax code for Job 2 — typically D0 (40%) or a custom code — so the correct amount is deducted.
National Insurance Is Calculated Separately
Unlike income tax, National Insurance is assessed by each employer independently. Each employer applies the Primary Threshold (£12,570/year for 2025/26) to their own payroll. This means you may pay less NI overall than if both salaries were combined — but you will not receive a double Personal Allowance for NI purposes either.
Student Loan Repayments on Combined Income
Student loan repayments are calculated on your total annual income across all jobs. HMRC reconciles this through your Self Assessment tax return if you have multiple income sources. The calculator estimates repayments on your combined gross for the plan you select.
What If I Am Overpaying Tax?
If your combined earnings are below £12,570, you may be due a refund — your Personal Allowance is not being fully used. You can contact HMRC to split your allowance across both employers, or claim a refund via Self Assessment or by completing form P50 (if you have stopped work). You can also call HMRC or use your Personal Tax Account at gov.uk to request a code adjustment.
Worked Examples
The three scenarios below illustrate how the two-job tax rules play out in practice for common salary combinations.
Job 1: £20,000 (code 1257L) + Job 2: £15,000 (code BR)
Job 1 income tax: £1,486 (using personal allowance of £12,570).
Job 2 income tax: £3,000 (flat 20% on all £15,000).
NI calculated separately by each employer.
Job 1: £45,000 + Job 2: £8,000 (code BR)
Job 1 income tax: £6,486.
Job 2 income tax: £1,600 (20% BR on £8,000).
Combined income £53,000 exceeds the £50,270 higher-rate threshold — HMRC may issue a D0 code adjustment mid-year.
Overpayment scenario: two full PA codes issued
If both employers mistakenly issue a 1257L code, Job 1 pays no tax on the first £12,570 and Job 2 also pays no tax on its first £12,570.
This creates a £2,514 tax underpayment that HMRC will recover — usually via a January self-assessment bill.
2025/26 Tax Bands & NI Rates
The tables below show the England and Wales income tax bands and employee NI rates that apply to your combined earnings in 2025/26.
| Income Tax Band | Taxable Income | 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% |
| National Insurance (Employee) | Earnings | Rate |
|---|---|---|
| Below Primary Threshold | Up to £12,570 | 0% |
| Main Rate | £12,571 – £50,270 | 8% |
| Upper Rate | Over £50,270 | 2% |
NI is calculated independently by each employer. Scottish income tax rates differ — tick the Scotland option in the calculator above.