Short answer: having two jobs does not double your tax-free allowance. HMRC considers your total taxable income across both jobs when working out your overall Income Tax position.
This guide provides general information and an illustrative estimate. It is not personalised tax, financial, legal or payroll advice, and it does not guarantee a particular HMRC or payroll outcome. Check your own records and current HMRC guidance before acting.
How is tax calculated when you have two jobs?
For Income Tax, HMRC looks at your taxable income from all jobs and other taxable sources across the tax year, which runs from 6 April to 5 April.
You normally receive one Personal Allowance for the year, not one allowance for each job. The standard Personal Allowance is £12,570, although your actual allowance can be different because of your income or circumstances.
Your Personal Allowance is usually applied to your main job. Other employment may be taxed using a code such as BR, D0 or D1. These codes help employers collect tax during the year; they do not create separate final tax bills for each job.
Common tax codes for a second job
| Code | Simple meaning | Watch out for |
|---|---|---|
| 1257L | Usually gives the standard £12,570 Personal Allowance | HMRC says only one employer should normally use 1257L at a time |
| BR | All pay from that employment is taxed at the basic rate | This may not collect enough if your combined income falls into a higher band |
| D0 | All pay from that employment is taxed at the higher rate | Whether it is correct depends on total expected income |
| D1 | All pay from that employment is taxed at the additional rate | Whether it is correct depends on total expected income |
Scottish and Welsh taxpayers may see prefixes or different codes. Always use the code shown on the relevant payslip and check HMRC's record if it appears wrong.
Two jobs at the same time
If you keep your first job and start an additional job, your first employer will not give you a P45 because that employment has not ended. You should normally complete a starter checklist for the new employer and state that you already have another job.
HMRC says the Personal Allowance is usually allocated to the job that pays the most. If that job does not use the full allowance, HMRC may be able to allocate the unused amount to another employment.
- Enter taxable pay received to date for each employer.
- Add PAYE Income Tax deducted to date.
- Estimate the remaining taxable pay before 5 April.
- Record National Insurance deducted to date separately.
Changing jobs during the tax year
Your former employer should provide a P45 when you leave. A P45 shows your leaving date, tax code, and pay and tax information from 6 April to the date you left. Give the relevant parts to your new employer so payroll can use the information when calculating PAYE.
If you do not have a P45, you can complete a starter checklist. HMRC warns that you may initially pay the wrong amount of tax if the required information is unavailable or incorrect.
Avoid counting the same pay twice
This is the single most important thing to get right when entering figures from cumulative payslips or other cumulative payroll records.
Some later payroll records may show totals that already include pay and tax from an earlier employment. If you add the earlier figures again, your estimated income and PAYE tax will be overstated.
- Separate employment figures: enter the pay and tax relating to each employment once.
- Later cumulative figure includes the earlier job: select “My later/current-job figures already include the earlier job.” MoneyMeasure will exclude Job 1 from the combined totals.
Do not select the double-counting option merely because you changed jobs. Select it only when the later figure already contains the earlier pay and tax.
Simple double-counting example
Suppose your earlier job shows £20,000 of pay. A later cumulative record shows £50,000 of total pay for the tax year, including that earlier £20,000.
Your total is £50,000—not £70,000. Entering £20,000 plus £50,000 without using the double-counting guard would overstate your income by £20,000.
Worked Income Tax example
Assume an employee living in England has the standard Personal Allowance and the following 2026/27 figures:
| Employment | Taxable pay | PAYE tax deducted |
|---|---|---|
| Job 1 | £20,000 | £1,486 |
| Job 2 | £30,000 | £6,000 |
| Combined | £50,000 | £7,486 |
On these simplified assumptions, estimated Income Tax on £50,000 is £7,486. Because PAYE deducted across the two jobs is also £7,486, the estimated Income Tax balance is £0.
Real payroll results can differ because of tax-code changes, cumulative or Week 1/Month 1 operation, irregular pay, benefits, pension deductions, rounding and other income.
National Insurance is not simply calculated on combined salary
In short: National Insurance is generally worked out separately for each employment and pay period, so combining both salaries can produce a misleading result.
MoneyMeasure therefore records the National Insurance entered for each job but does not combine both salaries and recalculate National Insurance as if one employer paid the total.
People with sufficiently high earnings from more than one employer may be able to apply to HMRC to defer some Class 1 National Insurance. This is a specific HMRC process with eligibility conditions.
Student-loan deductions when you have two employers
In short: for normal payroll deductions, each employer usually compares the pay from that job with the repayment threshold for your plan.
GOV.UK explains that if neither individual job pays above the relevant threshold, payroll student-loan deductions may not arise even when the two salaries combined exceed it. Different treatment can apply where you complete Self Assessment, because HMRC may then consider annual combined income.
The MoneyMeasure multiple-jobs result currently estimates the combined Income Tax position only. It does not calculate a combined student-loan liability for multiple employments.
What information should you have ready?
- Latest payslip for each current job.
- P45 from an employment that ended.
- P60 for each job you still held on 5 April.
- The tax code shown for each employment.
- Taxable pay and PAYE tax deducted to date.
- A realistic estimate of remaining pay before 5 April.
A P60 is produced for each job you still hold on 5 April and should be provided by 31 May. If you left before 5 April, the relevant employment record will normally be your P45 rather than a P60 from that employer.
What should you do if the estimate looks wrong?
Check the PAYE section of your Personal Tax Account or the HMRC app. Make sure every current employer is listed, ended jobs are marked as ended, estimated income is reasonable, and each tax code matches the relevant payslip.
You can update missing or incorrect employment details through HMRC's online services. MoneyMeasure cannot change a tax code or confirm that HMRC will issue a refund.
Frequently asked questions
Do I receive a Personal Allowance for each job?
No. You normally receive one Personal Allowance for the tax year, even if you have several jobs, pensions or other income sources.
Is a second job always taxed at 20%?
No. BR taxes all pay from that employment at the basic rate, but the appropriate code depends on your total expected income. A second employment might use BR, D0, D1 or another code.
Will I always receive a P45 when I start a second job?
No. A P45 is issued when an employment ends. If you keep your existing job and start an additional one, complete the starter checklist and state that you already have another job.
Do I receive two P60s if I have two jobs?
You receive a separate P60 from each employer whose employment you still hold on 5 April. An employer must normally provide it by 31 May.
Does the calculator claim a refund for me?
No. It provides a planning estimate by comparing estimated Income Tax with PAYE already deducted. HMRC determines the final position.
Published by MoneyMeasure UK · General information only · Reviewed 9 August 2026