Written and reviewed by James Whitfield · Updated for 2026/27 · Editorial standards · Methodology
How PAYE taxes a second job or pension: what BR, D0 and D1 mean, when they over- or under-tax you, how to split your Personal Allowance between jobs, National Insurance on two jobs, and how to fix a wrong code.
A second job is usually taxed on BR (20% on every pound), or D0 (40%) if your main job already uses the basic-rate band, because your single £12,570 Personal Allowance goes to your main job12. If your main job pays less than £12,570, BR overtaxes you: on £9,000 + £12,000 you would overpay £714 a year. Ask HMRC to split your allowance between the jobs. National Insurance is worked out separately for each job.
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Typical default outputs for quick context.
Scottish taxpayers get Scottish versions: SBR (20%), SD0 (21%), SD1 (42%), SD2 (45%) and SD3 (48%). Welsh taxpayers' codes start with C (CBR, CD0, CD1), at the same rates as England2.
A flat-rate code is not an emergency code. It is HMRC's way of making sure the second job does not use an allowance you are already getting from the first.
| Code | Tax taken | Usually right when |
|---|---|---|
| BR | 20% of every pound | Your total income stays under £50,270 |
| D0 | 40% of every pound | Your main job already uses the basic-rate band |
| D1 | 45% of every pound | Your main income is above £125,140 |
| Split code, e.g. 357L | Normal bands on the pay above the allowance | Your main job pays less than £12,570 |
Aisha has two part-time jobs. Job A pays £9,000 a year on 1257L, job B pays £12,000 on BR. Job A cannot use her whole allowance, so £3,570 of it goes to waste while job B taxes every pound at 20%.
| Amount | How | |
|---|---|---|
| Tax on job A (1257L) | £0.00 | £9,000 is below £12,570 |
| Tax on job B (BR) | £2,400.00 | £12,000 × 20% |
| Tax actually due on £21,000 | £1,686.00 | (£21,000 − £12,570) × 20% |
| Overpaid over the year | £714.00 | £3,570 unused allowance × 20% |
The fix is a split allowance: job A gets a code worth £9,000 (900L) and job B gets the other £3,570 (357L). Job B's tax becomes (£12,000 − £3,570) × 20% = £1,686.00, the right amount. Codes are rounded down to the nearest £10 of allowance; HMRC sets the exact numbers.
The opposite happens when two jobs together cross the higher-rate threshold. Ben earns £45,000 in his main job and £10,000 from a second job on BR. Only £5,270 of the second job fits in the basic-rate band; the other £4,730 should be taxed at 40%.
The tax due on the second job is £2,946.00 (£5,270 × 20% + £4,730 × 40%), but BR takes only £2,000.00. That leaves £946.00 underpaid. HMRC may change one of his codes during the year to collect it; if not, it shows up on a P800 after 5 April4.
Where all of the second job sits in the higher-rate band, as for someone earning £60,000 with an £8,000 second job, D0 is the right code: £3,200.00 a year, against £1,600.00 on BR.
National Insurance is not pooled like income tax. Each employer applies the threshold to the pay from its own job: in 2026/27 you pay 8% only on earnings over £242 a week (£1,048 a month) from that job3. Aisha's jobs pay £750 and £1,000 a month, so neither takes any NI. If one employer paid her the same £21,000, she would pay £674.40 a year.
If you already pay NI in another job you may be able to defer some of it; payroll then uses category letter J (or Z if you are under 21), which charges 2%.
If your pay in either job varies a lot from month to month, a split allowance can leave you paying too little; HMRC warns about this1. In that case leaving BR in place and taking a refund after the year end can be simpler.
Current tax-year thresholds used across this guide and calculator.
Usually BR, which taxes all pay from that job at 20%, because your Personal Allowance is used by your main job. If your main job already uses the basic-rate band, D0 (40%) is normal, and D1 (45%) if your income is over £125,140.
Because you only get one £12,570 allowance and it sits with your main job. That is correct if your main job pays more than £12,570. If it pays less, part of your allowance is wasted and you can ask HMRC to split it.
Yes. Contact HMRC or use your personal tax account to check whether it can be split. HMRC warns that a split can leave you underpaying if your pay in either job varies a lot.
Each employer works out NI on its own pay. In 2026/27 you pay 8% only on earnings over £242 a week (£1,048 a month) from that job, so two small jobs can mean no NI at all.
No. BR is a normal code for a second job or pension. On your only job it is usually wrong, for example when a new employer had no P45 and you ticked statement C on the starter checklist.
BR then takes too little. With £45,000 in your main job and £10,000 on BR, you would underpay £946. HMRC may change a code during the year or collect it after the year end through a P800.
The rates, thresholds and rules on this page are drawn from the official UK government sources below, using the confirmed 2026/27 figures. Each link opens the relevant HMRC or GOV.UK page in a new tab.
Verified against published UK government guidance for 2026/27.