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Second Job Tax Rules in Scotland – 2025/26 Guide

By Team SalaryCalculate · 6/18/2025

Second Job Tax Rules in Scotland – 2025/26 Guide

1. Personal Allowance & How It’s Applied

Everyone gets a single Personal Allowance of £12,570 in 2025/26—no matter how many jobs you have gov.scot+11moneyhelper.org.uk+11simplybusiness.co.uk+11.

Scenario example:

If Job A pays £14,000 and Job B pays £6,000 annually, the full allowance usually applies to Job A. This results in:
  • Job A: £1,430 taxable at Scottish rates
  • Job B: taxable from the first pound until you claim allowance splitting.

2. Scottish Income Tax Bands & Rates

Tax rates in Scotland differ from the rest of the UK (excluding dividends and savings).

For 2025/26, the bands are:

Starter Rate – 19%

  • Applies to income between £12,571 and £15,397
  • Only the portion within this range is taxed at 19%

Scottish Basic Rate – 20%

  • Applies to income between £15,398 and £27,491
  • This range is taxed at 20%

Intermediate Rate – 21%

  • Applies to income between £27,492 and £43,662
  • This chunk of income is taxed at 21%

Higher Rate – 42%

  • Applies to income between £43,663 and £75,000
  • Income in this band is taxed at 42%

Advanced Rate – 45%

  • Applies to income between £75,001 and £125,140
  • Taxed at 45%

Top Rate – 48%

  • Applies to income above £125,140
  • Taxed at 48%

Implications for second job income:
Income from a second job is taxed at these Scottish rates, layered on top of your main job earnings.

3. PAYE Codes & Tax Deductions

Your second job will typically use one of these PAYE codes:

Double-check your payslips—if you’re overpaying at basic rate (SBR) but should be in a higher bracket, contact HMRC for an adjustment.

4. National Insurance Implications

Class 1 NICs are due on each job earning above £242 per week (~£12,570/year) simplybusiness.co.uk+3moneyhelper.org.uk+3taxsummaries.pwc.com+3:

💡 If both jobs exceed the weekly NIC threshold, you’ll pay NICs on each.

5. Self‑Employment & Second Job on the Side

If your second job is self‑employment, you must:

  • Register with HMRC by 5 October after the tax year starts.
  • File a Self Assessment by January 31, 2026
  • Pay Class 4 NICs: 6% on profits between £12,570–£50,270; 2% above
  • Possibly claim the £1,000 trading allowance, rising to £3,000 by 2029

6. How to Optimize & Avoid Surprises

  1. Claim Allowance Splitting: Contact HMRC to allocate part of your personal allowance to your second job.
  2. Update Tax Codes: Make sure you’re on an appropriate Scottish code for each job.
  3. Watch Combined Thresholds: Your total income might push you into a higher band like Intermediate or Higher.
  4. Prepare for NICs Twice: Both jobs above the £242/week threshold mean separate NICs payments.
  5. Self-Employment Planning: Keep clear income records, claim allowed expenses, and declare earnings on time.

✅ Summary Checklist

  • Your personal allowance (£12,570) applies once—consider splitting it.
  • Second job taxed under Scottish PAYE codes (SBR, SD0, etc.).
  • Scottish tax bands apply cumulatively across all sources.
  • Separate NICs may be charged if both jobs exceed thresholds.
  • If self-employed: register, track income, use trading allowance, file Self Assessment.

Final Advice

Stay ahead of HMRC notifications and review your tax codes and allowance split. If your combined income means a jump into higher Scottish tax bands, or if you're self-employed, planning and record-keeping are essential. When in doubt, reach out to HMRC or a qualified tax adviser.

For help with salary calculations try our Scotland salary tools.