28 May 2026
H M Revenue and Customs (HMRC) have published guidance for people with multiple sources of income, or if someone has changed their circumstances, such as starting or leaving a job.
The standard Personal Allowance in the tax year 2026-27 is £12,570. This is the amount of income a person can earn without paying tax, although this amount can differ depending on their individual circumstances.
People only have one Personal Allowance for each tax year, which is split into even weekly or monthly amounts and used each period someone is paid. This is true even if someone has multiple sources of income, such as having more than one job, pension, or other sources.
To ensure someone is paying the correct amount of tax, HMRC will allocate a tax code, so that employers or pension providers can calculate the tax liabilities due. It is likely that if a person does have more than one source of income, and that each one will have a different tax code. For instance, one may use the Personal Allowance (this is usually their main source of income/job), and therefore have the tax code 1257L, but another may have a code such as:
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BR (basic rate) meaning all income is taxed at 20%
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D0 (Higher rate) meaning all income is taxed at 40%
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or D1 (additional rate) meaning all income is taxed at 45%.
HMRC will typically allocate a tax code based on a person’s total income from all sources in the tax year. Please note that rates and tax codes may be different should they reside in Scotland or Wales.
People will pay tax in the following situations if their income exceeds their Personal Allowance:
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on their main source of income or job, once their pay exceeds their weekly or monthly Personal Allowance, in a pay period
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on all income earned from any other sources, regardless of how small those amounts may be.
Individuals will not usually pay tax on earnings from their main job if they are below their Personal Allowance, unless the total income from all sources exceeds the allowance. If earnings do remain below the Personal Allowance, it may be worth considering splitting it between multiple incomes, however, please contact HMRC directly to discuss individual situations.
At the end of the financial year, HMRC will check the total earnings and tax due, to make sure that the right amount has been paid.
Starting and leaving jobs
Should an individual start a new job, whilst remaining employed at another, they will not receive a P45 form. Instead, they must fill in a starter checklist and give this to their new employer. It is important to state if a person has another source of income if applicable to ensure the new employer has the correct details.
If an individual leaves a job, they can use their Personal Tax Account or the HMRC app to notify HMRC. This helps HMRC allocate the correct tax code(s) to any other jobs or sources of income. Individuals can also use these resources to make sure each of their jobs are listed correctly, check which employment is using the Personal Allowance, see details regarding income, tax and tax codes and the HMRC estimate of a person’s total income for that financial year.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.