Multiple Jobs Tax Refund UK: How to Claim Back Overpaid Tax
Working two or more jobs in the UK? Learn how PAYE handles multiple employments, why tax is often overpaid, and how to claim back what you are owed from HMRC.
Having two or more jobs is increasingly common in the UK, whether it is a side hustle, part-time weekend work, or juggling multiple contracts. But what most people do not realise is that having multiple jobs is one of the most common reasons for overpaying tax. The PAYE system was not designed with multiple employments in mind, and it frequently gets the numbers wrong.
How Tax Works With Multiple Jobs
When you have more than one job, HMRC needs to decide how to allocate your Personal Allowance (the 12,570 pounds you can earn tax-free). The standard approach is:
- **Your main job** gets your full Personal Allowance (tax code 1257L)
- **Your second job** gets no Personal Allowance (tax code BR, meaning all income taxed at 20%)
This works fine in theory, but problems arise when:
- HMRC does not know about all your jobs
- The allowance is split incorrectly between employers
- You stop one job but HMRC does not update the other
- Your total combined income falls within or crosses tax band thresholds
Why Overpayment Happens
**Scenario 1: You do not earn enough to use your full allowance.** If your main job pays 10,000 pounds and your second job pays 5,000 pounds, your total income is 15,000 pounds. You should only pay tax on 2,430 pounds (15,000 minus 12,570). But if your second job is on BR, you are paying 20% tax on the entire 5,000 pounds from that job, which is 1,000 pounds. The correct tax on 2,430 pounds should be only 486 pounds. You have overpaid by 514 pounds.
**Scenario 2: Both jobs apply the Personal Allowance.** This leads to underpayment rather than overpayment, but it is worth mentioning because you could face a surprise bill.
**Scenario 3: You leave one job but the tax code on your other job is not updated.** If you leave your main job and your second job is still on BR, you are now being taxed at 20% on everything with no Personal Allowance, even though you should have it.
**Scenario 4: The timing is off.** You start a second job mid-year, and the PAYE system does not correctly reconcile the cumulative position across both employments.
How to Check if You Have Overpaid
The quickest method is to add up your total income from all jobs (use your P60s or payslips) and calculate the correct tax on the combined amount. Then compare it to the total tax actually deducted across all your employments.
AuditMyTax makes this straightforward. You can input your income from multiple jobs and it will calculate exactly what you should have paid versus what was deducted. If there is a difference, you know you are owed a refund.
How to Claim Your Refund
**During the tax year:** Contact HMRC on 0300 200 3300 and ask them to review your tax codes across all your employments. They can adjust the codes so the correct amount is deducted going forward, and any overpayment already made should be refunded through your pay.
**After the tax year ends:** HMRC may send you a P800 showing the overpayment, typically between June and October. You can claim online through your Personal Tax Account. If you do not receive a P800, you can call HMRC or write to them requesting a review.
**Going further back:** Remember the 4-year rule. You can claim refunds for the current year and the previous 4 tax years. If you have had multiple jobs for several years, it is worth checking each year.
How to Get Your Tax Codes Right
To minimise problems with multiple jobs:
1. **Tell HMRC about all your jobs.** Use your Personal Tax Account to ensure they know about each employment.
2. **Decide how to split your allowance.** You can ask HMRC to allocate your full allowance to one job, split it between jobs, or apply it to the highest-paying job. The most common setup is full allowance on your main job and BR on the second.
3. **Give your P45 to new employers promptly.** If you leave one job and start another, the P45 ensures continuity.
4. **Check your payslips regularly.** Look at the tax code on each payslip and make sure it matches what HMRC has on record.
What About National Insurance?
National Insurance is calculated separately for each job. You have a separate NI threshold for each employment, which means you might actually pay less NI in total with two part-time jobs than one full-time job earning the same total. However, if you pay too much NI (for example, because combined earnings push you over the upper earnings limit across multiple jobs), you can also claim that back.
Real-World Example
Sarah works full-time earning 25,000 pounds (tax code 1257L) and has a weekend job earning 6,000 pounds (tax code BR). Her total income is 31,000 pounds.
Correct tax calculation: 31,000 minus 12,570 = 18,430 at 20% = 3,686 pounds.
What was actually deducted: Main job tax on 25,000 using 1257L = 2,486. Second job tax on 6,000 at BR = 1,200. Total deducted = 3,686. In this case, the numbers match perfectly.
But if Sarah only worked 3 months at the second job and earned 1,500, the BR deduction of 300 pounds may have been too much if her combined income was still well within the basic rate band and her main job did not fully utilise the allowance early in the year.
The point is: it depends on the specifics. Check your actual numbers rather than assuming everything is correct.
Take Action
If you have or had multiple jobs, spend a few minutes checking whether you have overpaid. The amounts can be significant, especially if the problem has persisted over several tax years. Use AuditMyTax or contact HMRC directly - either way, do not leave your money sitting with the taxman.