Students: I have 2 part-time jobs, am I entitled to Personal Allowances on both?

Nearly everyone in the UK is entitled to an Income Tax Personal Allowance. This is the amount of income you can earn or receive each tax year before paying tax. It doesn't matter how many jobs you have, you are only entitled to one Personal Allowance in any tax year. A new tax year begins every 6 April and finishes on 5 April the next year.

The Personal Allowance for the 2014 to 2015 tax year is £10,000.

If you start a second job - without giving up your first job - you won't have a form P45. Your new employer will give you a Starter Checklist instead, or ask you for relevant information before your first pay day to tell HM Revenue & Customs (HMRC) about you. This will help your employer allocate a tax code and work out the tax on your first pay day.

It's important that you complete the Starter Checklist or provide the relevant information your employer has asked you for as soon as possible before your first pay day. If you don't you could end up paying the wrong amount of tax.

You can also complete and print a copy of the Starter Checklist by following the link below. Give it to your employer, do not send the checklist to HMRC.

Starter checklist

Your new employer will then deduct tax at basic rate (20%) from your wages.

If you don't pay tax on your first job it may mean that you are not using all of your Personal Allowance.

If this happens you can ask HMRC to split your Personal Allowance between your jobs so any spare allowances you have from your first job can be used against your second employment.

You may decide to split your allowances between your jobs if your income from your second job is less than your Personal Allowance so you pay tax due on your second job from your first jobs income.

For example, Mr James is entitled to a Personal Allowance of £10,000 for the 2014 to 2015 tax year. He earns:

  • £20,000 from Company A
  • £1,615 from Company B

Mr James can ask his tax office to split his Personal Allowance as follows:

Company Pay Allowances

Company A

£20,000

£8,385

Company B

£ 1,615

£1,615

Total

£21,615

£10,000 (Personal Allowance entitlement)

This means he receives his income from Company B without tax being deducted. This does not alter Mr James's overall tax bill as he will pay the tax due from his Company B pay on his Company A income. You should contact HMRC if you wish to do this.

More useful links

Personal Allowance

Income Tax rates and allowances

National Insurance Contributions rates and allowances