3 jobs tax calculator

If you have more than one employment, your tax status

If you work more than one job, it is critical that you pay the correct amount of tax. Because the PAYE (Pay As You Earn) system does not readily accommodate numerous occupations, complications might develop.

You are only entitled to one tax-free personal allowance every tax year, and the number of jobs you have has no bearing on this. The personal allowance in 2022/23 is £12,570. The PAYE system is meant to regard one job as your primary employment (for which you would get your personal allowance in full) and the other occupations as secondary (which are taxed at the basic rate of 20 percent ).

This implies that one job should have a code of 1257L (representing a tax free personal allowance of £12,570 for the tax year 2022/23 with the final digit deleted and a letter inserted) while the rest should have a BR (basic rate) code.

Why may I pay too little tax if I work many jobs?

Because most people pay 20% tax (you would have to earn more than £50,270 in 2022/23 to pay more than 20% tax; unless you live in Scotland, where income tax rates and bands differ from the rest of the UK – see the tax basics section for more details), the system outlined above helps ensure that you do not underpay tax.

However, this mechanism sometimes fails. For example, if HMRC is unaware that you have many jobs, you may be eligible for the tax-free personal allowance more than once. You will not have paid enough tax as a result. To avoid this, make sure HMRC is aware that you have more than one work by always providing your new employer with the HMRC beginning checklist (you will not be able to give them a P45 when taking on an extra job). Even if you have informed HMRC of your situation, you should double-check your PAYE coding notifications.

On our Pay As You Earn (PAYE) form: starting checklist internet page, you may discover information on completing a beginner checklist, including an annotated example.

What if my total earnings are less than my personal allowance?

If your total income from all occupations is less than your personal allowance, you may wind up paying too much tax under the approach mentioned above.

How will National Insurance work if I work more than one job?

In addition to tax, you may be required to pay National Insurance Contributions (NIC) on income from a second employment. However, National Insurance works differently than income tax. There is just one tax-free sum accessible per individual every tax year. There is a new limit for National Insurance for each employment as long as it is with a separate employer. In 2022/23, the maximum is £190 per week or £823 per month between April 6 and July 5, and £242 per week or £1,048 per month between July 6 and April 5.