Understand exactly how student loan deductions work across multiple jobs. See why multiple jobs below threshold can escape PAYE but create Self Assessment liability.
PAYE deductions: £0 per year
True liability: £1,542 per year
Underpayment: £1,542(£128 per month)
This gap will likely need to be paid via Self Assessment by 31 January.
Each employer applies thresholds ONLY to what they pay you. They cannot see your other jobs or total income.
Monthly threshold: £2,373 | Weekly: £547
Jobs with the same employer name will have combined income for PAYE
Jobs with the same employer name will have combined income for PAYE
Plan: Plan 2
Monthly threshold: £2,373
Weekly threshold: £547
Rate: 9.0% above threshold
| Job | Monthly Income | UG Deduction | Net Income |
|---|---|---|---|
Job 1 Company A Below Threshold | £2,000 | £0 | £2,000 |
Job 2 Company B Below Threshold | £1,800 | £0 | £1,800 |
| Total PAYE Deductions | £3,800 | £0 | £3,800 |
Two £2,000/month jobs (Plan 2):
• Each job: Below £2,373 threshold → £0 PAYE deductions
• Combined: £4,000/month → True liability: £146/month
• Result: £1,752 annual underpayment via Self Assessment
One job above, one below threshold:
• Job 1: £2,500/month → £11.43 PAYE deduction
• Job 2: £1,800/month → £0 PAYE deduction
• Combined creates additional liability not captured by PAYE
PAYE can't always capture the correct student loan repayments across multiple jobs. Understanding this gap is crucial for avoiding unexpected bills.