Do You Need to Declare Income From a Second Job?
Having a second job is increasingly common.
You might work full-time during the week and then earn extra money from another employer in the evenings or at weekends. Or perhaps your additional income comes from freelancing, delivery work, tutoring or another side business.
But does that extra income need to be declared to HMRC?
The answer depends heavily on how you earn it.
If both jobs are normal PAYE employments, your employers will usually deduct Income Tax through payroll. Having two PAYE jobs does not, by itself, mean you need to complete a Self Assessment tax return. HMRC has specific guidance for people with more than one job and recommends checking that each employment and tax code is recorded correctly. GOV.UK
Two PAYE jobs are normally dealt with through payroll
Suppose you have:
Job one: your main full-time employment
Job two: weekend work for another employer
If both employers operate PAYE, each employer deducts tax according to the tax code HMRC has provided.
You therefore don’t normally need to manually “declare” the second salary through Self Assessment simply because it comes from another employer.
However, there is an important issue to check:
your tax codes.
You only get one Personal Allowance
Having two jobs does not give you two Personal Allowances.
For the 2026/27 tax year, the standard Personal Allowance is £12,570, although an individual’s allowance can differ depending on their circumstances.
HMRC confirms that you only receive one Personal Allowance for the tax year even where you have several jobs, pensions or other sources of income. GOV.UK
Normally, your main employment may use your Personal Allowance.
Your second employment might instead have a tax code such as:
- BR – all income from that employment taxed at the basic rate
- D0 – all income taxed at the higher rate
- D1 – all income taxed at the additional rate
HMRC says each job will usually have its own tax code, and the correct codes depend on your overall income and circumstances. Scottish and Welsh taxpayers can have different rates and codes. GOV.UK
Why your second-job tax code matters
Imagine your Personal Allowance was accidentally being used against both jobs.
You could end up receiving too much income without tax being deducted.
Alternatively, the wrong code could result in too much tax being taken from your second salary.
This is why it is worth checking rather than assuming payroll must automatically be correct.
HMRC’s Personal Tax Account and HMRC app allow you to see:
- Your employment records
- Your estimated income
- Your tax codes
- Which employment is using your Personal Allowance
- The tax HMRC expects you to pay
You can also update incorrect employment details or estimated income. GOV.UK
What if your “second job” is actually self-employment?
This is where the position changes.
Perhaps you have a normal PAYE job but also earn money independently from:
- Freelancing
- Photography
- Tutoring
- Gardening
- Consulting
- Food delivery
- Social media work
- Selling goods for profit
- Other paid services
That additional work may be self-employment rather than a second PAYE job.
HMRC’s current Self Assessment rules state that you must send a tax return if you were a sole trader and earned more than £1,000 before deducting expenses or tax relief during the tax year. GOV.UK
So the fact that you already pay tax through your main job does not make your self-employed income disappear for tax purposes.
What about the £1,000 trading allowance?
There is a £1,000 trading allowance that can be relevant to smaller amounts of trading income.
But be careful with how the threshold is interpreted.
HMRC’s Self Assessment test refers to gross trading income before expenses, rather than profit after expenses. GOV.UK
For example, suppose you have:
PAYE salary: £32,000
Freelance revenue: £4,500
Freelance expenses: £1,500
Your freelance profit may only be £3,000, but your gross trading income is £4,500.
You should therefore consider the Self Assessment requirements rather than looking only at the profit figure.
What if you have several small side hustles?
Having several small sources of trading income does not necessarily allow you to treat each one as having its own £1,000 allowance.
HMRC provides an online service specifically for checking whether additional income needs to be reported, including income from casual jobs, selling goods, content creation and other activities. GOV.UK
If you’re earning money from several different activities, look at the complete picture rather than each payment in isolation.
PAYE and self-employment can exist together
There is nothing unusual about being employed and self-employed at the same time.
Your salary can continue to be taxed through PAYE.
Your self-employed profits can then be dealt with separately where Self Assessment is required.
For National Insurance, HMRC explains that an employee who also has self-employed profits can pay Class 1 National Insurance through employment and may also have Class 4 National Insurance to pay on qualifying self-employed profits. GOV.UK
Your final tax position therefore needs to take account of both sources.
Your total income matters
One of the most important principles when you have several jobs is that Income Tax ultimately looks at your taxable income across the tax year.
HMRC’s guidance tells taxpayers to add together their taxable income when establishing whether Income Tax is due. GOV.UK
That matters because a second job can push some of your income into a different tax band.
For example, someone could have:
Main employment: £45,000
Second employment: £15,000
Looking at the second job by itself doesn’t show the full tax position.
The combined income needs to be considered.
National Insurance works differently
Income Tax and National Insurance should not be treated as identical.
Where you have two or more jobs with different employers, HMRC’s 2026/27 employer guidance says National Insurance is normally calculated separately by each employer based on the earnings they pay you, subject to specific exceptions. GOV.UK
This is different from simply adding both salaries together and applying one National Insurance calculation.
There are also special rules and potential deferment arrangements in certain multiple-employment situations. GOV.UK
What if HMRC thinks an old job is still active?
This is worth checking.
Sometimes HMRC’s records can show more than one employment because an old employer has not correctly reported that you left.
HMRC warns that incorrect or missing employment information can result in the wrong tax code and therefore the wrong amount of tax being deducted. GOV.UK
Through your Personal Tax Account or HMRC app, you can update information including:
- An employment you’ve stopped
- A missing employer
- Your estimated income GOV.UK
If you change jobs regularly, checking this information can be particularly useful.
Do you automatically need Self Assessment because you have two jobs?
No.
Two PAYE jobs do not automatically create a Self Assessment requirement.
HMRC provides an online checker for the 2025/26 tax year that determines whether you need to submit a return based on your wider circumstances. GOV.UK
Self Assessment becomes more relevant where you also have circumstances such as:
- Self-employment above the relevant threshold
- Untaxed property income
- Savings interest requiring reporting
- Dividends requiring reporting
- Foreign income
- Capital Gains Tax liabilities
- Certain other untaxed income
HMRC’s current guidance lists these among the situations that can result in a return being required. GOV.UK
What if tax hasn’t been deducted correctly?
Don’t simply wait and hope the problem resolves itself.
You can check your current-year Income Tax position through HMRC.
The service allows you to review:
- Your tax code
- Your Personal Allowance
- Estimated employment income
- Expected Income Tax
- Employment details
HMRC specifically warns that inaccurate employment or income information can result in you paying too much or too little tax. GOV.UK
Correcting the information during the year can reduce the chance of an unexpected adjustment later.
What records should you keep?
If both jobs are PAYE employments, keep your normal employment documents, including:
- Payslips
- P60s
- P45s where applicable
- Details of your tax codes
If your additional income is self-employed, your record-keeping requirements become more extensive.
Keep evidence of:
- Sales and income
- Business expenses
- Invoices
- Receipts
- Business mileage where relevant
- Bank transactions
Good records make it much easier to establish what should actually be reported.
Frequently Asked Questions
Do I have to tell HMRC if I get a second job?
Your new employer normally reports employment information through PAYE. However, you should check that HMRC has the correct details and that your tax codes and estimated income are accurate. GOV.UK
Do I need Self Assessment if I have two PAYE jobs?
Not simply because you have two jobs. Whether you need a return depends on your wider tax circumstances. HMRC provides a checker specifically for this purpose. GOV.UK
Do I get two Personal Allowances with two jobs?
No. HMRC confirms that you receive only one Personal Allowance for each tax year, regardless of how many jobs or other income sources you have. GOV.UK
Why does my second job have a BR tax code?
BR means all income from that employment is taxed at the basic rate. It is one of the codes commonly used for a second job or pension, although whether it is correct depends on your overall circumstances. GOV.UK
What if my second income is freelance work?
That may be self-employment rather than PAYE employment. If your gross trading income exceeds £1,000, HMRC’s current rules say you must send a tax return where you are a sole trader. GOV.UK
Can I check whether HMRC has both of my jobs?
Yes. HMRC says you can use your Personal Tax Account or its app to check your employment records, estimated income and tax codes. GOV.UK
Final thoughts
A second income does not automatically mean a second tax return.
If you have two PAYE jobs, tax will usually be handled through payroll. Your priority should be checking that HMRC has both employments recorded correctly and that the right tax codes are being used.
If your additional income comes from self-employment or another untaxed source, the position can be different and you may need to report it to HMRC.
At Merranti Accounting, we can review income from employment, self-employment and other sources, establish whether Self Assessment is required and help make sure your overall tax position is correct.
Written by Stephen Watts ACMA
Accounting Director, Merranti Accounting
Stephen is Accounting Director and co-founder of Merranti Accounting. He has extensive commercial finance and accounting experience and works with businesses on accounting, tax, management information, financial strategy and business planning.
