Two jobs, one allowance

Lesson 8 of 16 in our free Work, Payslips & Tax guide: a 5-minute money game with the key points below.

This lesson is in the full version.

Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Work, Payslips & Tax is free for everyone.

Questions you'll answer

Mo's bar job pays £400 a month on a BR code. How much income tax comes off each month?

Mo earns £6,000/year at the café (main job) and £4,800/year at the bar (BR code). Total £10,800. What's the smart move?

Fact: “National Insurance is usually worked out separately for each job.” — Each job's pay is checked against the NI threshold on its own — so two small jobs might mean no NI at all.
Myth: “You get a full Personal Allowance for each job you have.” — One person, one allowance. Dex tried. HMRC said no.
Fact: “Overpaid tax from a second job can be reclaimed.” — Via the HMRC app/online account during the year, or after the tax year ends.
Checking both tax codes after starting the second job → In the pack. Two jobs = two codes to check.
Telling both employers to use 1257L → Not in the pack. That'd give you two allowances — you'd end up owing tax later.
Keeping all payslips from both jobs → In the pack. Proof for refunds and benefits.
Ignoring a BR code because 'it's only a weekend job' → Not in the pack. Small job, still potentially overtaxed money that's yours.