Do You Get Taxed More on a Second Job?

Learn how second job tax works in the UK, including tax codes, National Insurance, benefits impact, student loan repayments, and how to pay the correct tax.

Having a second job can be a great way to increase your income, but many people worry that it means paying more tax. While you don’t get taxed extra just for having two jobs, your second job is usually taxed at a higher rate because of the way HMRC applies tax codes.

This guide explains everything you need to know about taxing a second job, from tax codes to National Insurance, benefits impact, pensions, and how to ensure you’re paying the correct tax.

What is a Second Job?

A second job is any additional employment you take alongside your main job. It can be a part-time role, freelance work, or even self-employment.

People take second jobs for extra income, career progression, or flexibility. However, having two jobs can affect how much tax and National Insurance you pay.

Is It Legal to Have Two Jobs in the UK?

Yes, it’s completely legal to have more than one job in the UK. However:

  • Some employment contracts restrict secondary employment, so check with your main employer.

  • You must pay the correct tax on all income.

  • If you claim benefits, additional earnings could affect them.

Do You Need to Tell HMRC If You Get a Second Job?

Yes, HMRC needs to know about all sources of income. Usually, your employer reports your second job via PAYE, but if you’re self-employed, you must register for Self Assessment and file a tax return.

What is the Tax Code for a Second Job?

Your main job typically has a 1257L tax code (or another personal allowance-based code).

Your second job usually gets a BR, D0, or D1 tax code, meaning:

  • BR (Basic Rate) – All earnings taxed at 20% (used if you haven’t exceeded £50,270).

  • D0 (Higher Rate) – All earnings taxed at 40% (if total income is over £50,270).

  • D1 (Additional Rate) – All earnings taxed at 45% (if total income is over £125,140).

Since your personal allowance (£12,570) is usually assigned to your main job, all earnings from your second job are taxed without an allowance.

Example of Second Job Tax Code

  • Main job: £25,000 per year → Tax code 1257L (using full personal allowance).

  • Second job: £10,000 per year → Tax code BR (all taxed at 20%).

If the second job had D0, all of it would be taxed at 40% instead.

What is the Income Tax on a Second Job?

Tax rates on your second job depend on your total income across all jobs:

Up to £12,570: 0% (Personal Allowance)

£12,571 - £50,270: 20% (Basic Rate)

£50,271 - £125,140: 40% (Higher Rate)

Over £125,140: 45% (Additional Rate)

What is the National Insurance on a Second Job?

National Insurance (NI) is also due on a second job, but each employer treats your earnings separately:

  • You pay NI on each job separately, following normal thresholds.

  • If combined earnings exceed £50,270, you might overpay NI (but can claim a refund).

  • Below £242: 0%

  • £242 - £967: 8%

  • Over £967: 2%

Example of National Insurance on a Second Job

  • Job 1: £30,000/year → Pays NI at normal rates.

  • Job 2: £15,000/year → Pays NI again separately.

If total income exceeds £50,270, you might be eligible for a refund.

How to Pay Tax on a Second Job

Your employer deducts tax via PAYE. However, you should:

  1. Check your tax code on your second job payslip.

  2. Update HMRC if you think your code is incorrect.

  3. Use HMRC’s tax checker to ensure you’re not overpaying.

If you’re self-employed for your second job, you must:

  • Register for Self Assessment.

  • File a tax return each year.

  • Pay tax and NI directly to HMRC.

How Will Having a Second Job Affect My Benefits?

If you receive benefits, a second job can reduce payments depending on what you claim:

  • Universal Credit – Reduces by 55p for every £1 earned after the work allowance.

  • Tax Credits – Might decrease based on total income.

  • Housing Benefit – Could be reduced based on earnings.

Check with DWP or HMRC before taking a second job if you claim benefits.

Second Job and Pensions

  • You pay pension contributions on both jobs if each pays more than £10,000/year.

  • If both jobs pay under £10,000, you might not be auto-enrolled but can request to join.

  • Private pension contributions can reduce taxable income and save tax.

Self-Employed as a Second Job

If your second job is self-employed, you must:

  1. Register with HMRC.

  2. Submit a Self Assessment tax return.

  3. Pay tax and NI directly.

  4. Consider expenses and deductions to reduce taxable income.

Repaying Student Loans from a Second Job

Student loan repayments depend on your total income across all jobs.

  • Plan 1: 9% on income over £22,015.

  • Plan 2: 9% on income over £27,295.

  • Plan 4: 9% on income over £27,660.

  • Postgraduate loan: 6% on income over £21,000.

If both jobs combined exceed the threshold, repayments increase automatically.

Getting a Tax Refund if You’ve Overpaid Tax

You might overpay tax if:

  • Your tax code is wrong on your second job.

  • You change jobs mid-year.

  • You overpay National Insurance across multiple jobs.

To claim a refund:

  • Check your HMRC online account.

  • Submit a P800 refund claim if eligible.

  • HMRC may automatically issue a refund at the end of the tax year.

How to Make Sure You’re Paying the Correct Tax on a Second Job

  • Check your tax code regularly.

  • Inform HMRC of any income changes.

  • Use HMRC’s online tax checker.

  • Keep records of payslips and earnings.

Final Thoughts

Having a second job doesn’t mean you pay more tax overall, but it can push you into a higher tax bracket. Since your personal allowance is typically used up in your main job, your second job earnings are usually taxed at 20%, 40%, or 45%. Always check your tax code, NI contributions, and benefit impact to avoid overpaying or unexpected tax bills.