Tax Code for a Second Job: How Second Jobs Are Taxed

If you have a second job, it is usually taxed with a code like BR, D0 or 0T, because your tax-free Personal Allowance is normally applied to your main job. That means your second job is often taxed from the first pound, most commonly at the basic rate of 20%.

In this insight we explain how second jobs are taxed, which codes you are likely to see, whether you might be overpaying, and how to split your allowance between jobs if it works better for you.

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Key Takeaways

• Your Personal Allowance is usually applied to your main job, so a second job is taxed from the first pound, often at the basic rate with a BR code.
• Higher earners may see D0 (40%) or D1 (45%) on a second job, while 0T can appear if HMRC has no details for it.
• You are not automatically overpaying, but if your main job pays less than your allowance, you may be paying more than necessary.
• You can ask HMRC to split your Personal Allowance across jobs, which can help if your income is spread fairly evenly.

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Why Your Second Job Is Taxed Differently

Everyone gets one Personal Allowance, and it can only be applied to one source of income at a time. HMRC normally attaches it to your main job through the standard code, such as 1257L for 2025/26, which gives you £12,570 of tax-free pay there.

Because that allowance is already used, your second job usually has no tax-free amount of its own. Instead it is taxed with a code that charges tax from the first pound, most often BR at 20%. This is not an extra tax on second jobs, it simply reflects that your allowance is spoken for. Our guide to tax codes explained covers the full range of codes.

The Codes You Might See

Depending on your income, a second job or pension can carry different codes:

• BR - all income taxed at the basic rate of 20%. The most common second-job code for basic-rate taxpayers.
• D0 - all income taxed at the higher rate of 40%, used when your earnings push you into the higher band overall.
• D1 - all income taxed at the additional rate of 45%, for the highest earners.
• 0T - no allowance and the normal bands, often used when HMRC has no details for the job yet.

Scottish taxpayers may see an S prefix and slightly different bands. If your code recently changed when you took on extra work, why has my tax code changed explains the reallocation.

Are You Overpaying?

Whether a second-job code is right depends on your total income across both jobs. If your main job already uses your full allowance and your combined income keeps you in the basic-rate band, a BR code on the second job is usually accurate.

You may be overpaying if:

• Your main job pays less than your Personal Allowance. Then some of your allowance is unused, yet your second job is still taxed at 20% from the first pound.
• A 0T code is applied when you were entitled to some allowance on that income.
• A D0 code is used but your total income does not actually reach the higher-rate band.

You can check what your combined tax should be using our income tax calculator, which lets you see the effect of both incomes together. Thinking about the size of each role also ties into what a good salary is in the UK.

Splitting Your Personal Allowance

If your income is spread fairly evenly between two jobs, or your main job does not use all your allowance, you can ask HMRC to split your Personal Allowance across both. This gives each job a share of tax-free pay rather than concentrating it all in one.

To do this, contact HMRC or use your personal tax account on GOV.UK to explain your situation. HMRC can then issue adjusted codes to both employers. Splitting is not always beneficial, so it is worth comparing the outcome, but it can prevent overpaying where a low-paid main job would otherwise leave allowance unused.

Do Not Forget the Wider Picture

A second income can affect more than just your tax code. It may influence your student loan repayments, which are worked out on income, and it can interact with means-tested support. If you receive benefits, extra earnings may change your entitlement, as covered in our guides to Universal Credit and student loan repayment.

Keeping your details current with HMRC helps make sure both jobs are taxed correctly, and that any overpayment is refunded. You can find more tools on our calculators page.

Frequently asked questions

Do you pay more tax on a second job?

Not more overall, but the second job is usually taxed from the first pound because your allowance is used on your main job. Your total tax across both jobs should be the same as if you earned the same amount in one job, provided your codes are correct.

Why is my second job on a BR tax code?

Because your Personal Allowance is applied to your main job, leaving none for the second. BR taxes all of the second job's income at the basic rate of 20%. If your main job pays less than your allowance, you can ask HMRC to split the allowance instead.

Can I move my tax-free allowance to my second job?

Yes. If your second job becomes your higher earner, or your income is evenly split, you can ask HMRC to reallocate or split your Personal Allowance. Use your personal tax account or contact HMRC, and they will update the codes for both employers.

Will I get a refund if my second job was taxed too much?

Often, yes. If a code such as BR or 0T meant you overpaid, for example because you had unused allowance, HMRC usually refunds the difference once your codes are corrected, either through your pay or after the tax year ends.

General information only, not financial advice. If you think your tax code is wrong, contact HMRC.