Any taxpayer who has alternative revenue streams outside of their main employment is regarded as having both “employed” and “additional” income. Tax must be paid on any additional income; to calculate this, you must register with HMRC for a Unique Tax Reference and complete a self-assessment tax return.
Your personal allowance will be allocated to your main income and your second job will usually be taxed at the basic rate of 20%. The tax codes that appear on your payslips will usually be 1257L on your primary income and BR (basic rate), D0 or D1 on your second job.
Do you have to pay tax on second income?
Tax must be paid on any additional income; to calculate this, you must register with HMRC for a Unique Tax Reference and complete a self-assessment tax return. If you work for somebody other than your employer, you’ll almost certainly be considered a “second income” earner and will need to inform HMRC as soon as possible.
Where do I go to declare my second income?
Extra income should be declared on your self-assessment tax return. You can find more information about how to declare a second income on the GOV.UK website. Written by Mike Parkes, technical director, GoSimpleTax.
Do you need to tell HMRC if you have second income?
If you work for somebody other than your employer, you’ll almost certainly be considered a “second income” earner and will need to inform HMRC as soon as possible. Different types of second income can include: Freelance/contract work.
How does a second job affect your taxes?
Before you take on a second job, consider how taxes will be taken out of that check, and if the second job will bump you up an income bracket. You also need to determine if you should change your withholding with a second job. Here’s what you need to know about getting and a second job and how it will affect your taxes.
