Life SituationsUpdated 2025

Multiple Jobs & Student Loans: Do You Pay More?

Have two jobs? Learn why you might pay less than you expect under PAYE and when filing Self Assessment removes the per‑job treatment.

✅⚡ Quick answer

If you are an employee (PAYE) with multiple jobs, your student loan is usually calculated on each job separately. Under PAYE, each employer applies the repayment threshold to the pay they process for that job.

Good news: If both jobs are below the threshold individually, you usually pay nothing, even if your combined income is high.

Warning: If you file a Self Assessment tax return (e.g., for self-employment, rental income or other reasons), HMRC will combine all your income for the year and may bill you for any shortfall.

Plan 2 Threshold

£28,470

per year

Calculated

Per job

via PAYE

Combined

Only via Self Assessment

if you file a tax return

How PAYE Student Loan Deductions Work

Under PAYE, employers deduct student loan repayments based on what THEY pay you, they don't see your other jobs. That means PAYE treats each employment separately, which creates two very different outcomes depending on whether you file a tax return.

Each employer applies the full repayment threshold to the pay they report
If both jobs are PAYE and below the threshold individually, you typically pay £0
If you already file Self Assessment, HMRC looks at your combined annual income
Self Assessment filers can be billed for any shortfall between PAYE deductions and total liability

Scenario	Calculation method	Result
2× PAYE jobs (no tax return)	Calculated per job	Each income has its own threshold
Filing Self Assessment	Calculated on total income	HMRC combines incomes pushing you closer to the threshold

Scenario 1: Two employed jobs (PAYE only)

If both of your jobs are PAYE-only and you don't file a tax return, each employer applies the threshold to the pay they report. That creates a genuine benefit for many people with multiple part‑time roles.

📝 The PAYE multiple-threshold feature (No repayments)

Example:

Job A: £25,000 (below the £28,470 threshold)

Job B: £20,000 (below the £28,470 threshold)

Total income: £45,000

Result: £0 student loan deduction

Under PAYE, each employer applies the repayment threshold to the pay they process for that job. That means two part‑time pays can each be below the threshold even when combined income is high, this is a feature of PAYE for standard employees. You do not need to file Self Assessment simply to "fix" PAYE deductions unless you are otherwise required to file.

📝 One job above threshold

Example:

Job A: £35,000 (above threshold)

Job B: £10,000 (below threshold)

Result:

You only pay 9% on Job A's portion above the threshold, Job B does not affect the PAYE deduction at Job A.

Scenario 2: Employment + Self‑Employment

If you have income outside of PAYE (for example self‑employment, rental income or other reportable income) and you are required to file a Self Assessment return, HMRC calculates your student loan liability on your total annual income. They will take into account PAYE deductions already made and bill you for any shortfall.

💡Why this catches people out

PAYE treats each job separately but Self Assessment looks at everything together. If you file a return, the multiple‑threshold benefit disappears and HMRC will expect you to pay the correct amount for the year.

📝 Example: Combined income on Self Assessment

Alex has two jobs:

Job A (main): £40,000/year

Job B (consulting): £30,000/year

Combined income: £70,000/year

What Job A deducts:

9% × (£40,000 - £28,470) = £1,037.70/year

What Job B deducts:

9% × (£30,000 - £28,470) = £137.70/year

Total deducted: £1,175.40

What Alex actually owes:

9% × (£70,000 - £28,470) = £3,737.70/year

Result: Under PAYE both employers will deduct based on their individual payslips, but on Self Assessment HMRC will calculate the liability on the combined income and bill for any shortfall between PAYE deductions and total liability.

📝Wait, That's Also Underpayment!

Actually, most multiple job scenarios result in underpayment. True overpayment is rare but can occur if employers miscalculate or you change jobs mid-year and thresholds are applied incorrectly. You can claim refunds from SLC if you genuinely overpay.

How to handle multiple jobs correctly

Check whether you need Self Assessment

If you have self‑employment income, rental income above the allowance, or other reasons to file, you will be assessed on your total income. Only register if you are legally required, do not register just to "fix" PAYE deductions unless necessary.

If you are PAYE-only and both jobs are below thresholds

You usually pay £0 and don't need to file Self Assessment, this is a feature of the system.

If you must file Self Assessment

Include income from all jobs and enter PAYE deductions already made. HMRC will calculate total liability and invoice the difference.

Ask HMRC to collect through a single employer

If you prefer, request a tax code change so HMRC collects the shortfall through one job across the year, this avoids a single large bill.

Keep records

Save payslips and P60s. They prove what has already been deducted and are required for Self Assessment or refund claims.

Self Assessment: Step by Step

If you need to complete Self Assessment to pay the correct student loan amount:

📊Before the Tax Year Ends (6 April)

Register for Self Assessment at gov.uk (takes 10 days for UTR number)
Keep all P60s and payslips from each employer
Note any student loan deductions already made via PAYE

💰When Filing Your Return

Enter income from ALL employments
The system calculates total student loan due on combined income
Enter PAYE deductions already made (from P60s)
Pay the remaining balance by 31 January

⚡Payments on Account

If your Self Assessment bill exceeds £1,000, HMRC may ask for "payments on account"
These are advance payments for NEXT year, based on this year's liability
Due 31 January and 31 July
Can reduce them if you expect lower income next year

Alternative: Ask HMRC to Adjust Your Tax Code

HMRC may collect the shortfall via your PAYE tax code by reducing your tax‑free allowance at one employer. This depends on HMRC coding rules and collection limits (sometimes called "coding‑out"), for large shortfalls it may not be possible to collect everything via a code, in which case you may need to make a balancing payment or set up a repayment arrangement.

✓ Tax Code Adjustment Works If:

Your situation is straightforward (just two PAYE jobs)
Your income is stable and predictable
The underpayment amount is relatively small
You want to spread payments across the year

⚠️ Tax Code Won't Work If:

You have self-employment income too
Your income varies month to month
The underpayment is large or subject to coding limits, HMRC may not be able to collect via your tax code
You have complex tax affairs
You want precise control over payments

ℹ️How to Request

Call HMRC on 0300 200 3300 or use your Personal Tax Account online. Tell them you have multiple jobs and want student loan collected through your tax code. They'll issue a revised code to one employer.