Have 2 jobs and tax code on one is fine but the other is BR what does that mean?

Question

Have had second job for 6 months and the tax is quite high compared to other job but both pay around the same wage.

What does BR mean and should I quierie it? Also should you be paying National Insurance twice I mean in both jobs? Thanks.

Answer 1

BR means Basic Rate and it means that it taxes your whole wage at 20%

The reason is because you already have your Personal Allowance in your first job and you can only have one Personal Allowance. You will have to complete a self assesment tax return at the end of the year where all your earnings are added together and all the tax you have paid is added together. You can then calculate how much tax was actually due and compare it with how much you have paid. If you have paid too much then you will get it back.

If you were taxed normally at your second job this would mean you were getting a tax free allowance at double the allowed rate. At the end of the year you would end up having to repay it back. It is better to overpay tax now and get it back than have either a big chunk taken off you at the end of the year or spend the next tax year with a reduced personal allowance.

You pay NI on all the money you earn (after a certain threshold) not just on one job.

Answer 2

BR simply means you get 20% tax deducted.  This is probably correct, because your tax-free pay (your personal allowance) will all be given against your first job, in code 543L, I expect.

Yes, you do pay national insurance on both jobs.  But don't worry - it will all help your State pension a bit when you get to retire!