Understand how PAYE treats each job separately while Self Assessment combines all income. Discover potential underpayments and unexpected Self Assessment liabilities.
You have significant underpayment: Your individual jobs don't trigger PAYE deductions, but your combined income of £38,000 exceeds the threshold of £27,295.
Amount due: £963 per year (£80 per month) via Self Assessment.
Action required: You must complete Self Assessment and pay this amount by 31 January following the tax year.
PAYE applies thresholds to each job separately. Self Assessment combines all income sources. This can create unexpected liabilities.
2012-2023 students (England/Wales)
If you don't currently file, you may need to start based on your income sources
Annual threshold: £27,295
Monthly threshold: £2,275
Rate: 9.0% above threshold
Write-off: 30 years
£38,000
Total Annual Income
£0
PAYE Deductions
£963
True Annual Liability
£963
Underpayment
Combined Income vs Threshold
£38,000 vs £27,295 (£10,705 above threshold)
| Income Source | Annual Income | Monthly Repayment | Annual Repayment |
|---|---|---|---|
Job 1BelowBelow Threshold | £18,000 | £0 | £0 |
Job 2BelowBelow Threshold | £15,000 | £0 | £0 |
Side IncomeNo PAYE | £5,000 | £0 | £0 |
| Total PAYE Deductions | £38,000 | £0 | £0 |
This amount is due by 31 January following the tax year end via Self Assessment.
You need to complete Self Assessment
Based on your income sources and underpayment, you are required to file Self Assessment.
• You are not currently filing Self Assessment but need to start
• You have an underpayment of £963 due by 31 January
• You have non-PAYE income that requires Self Assessment
• Contact HMRC or a tax advisor to register for Self Assessment
Voluntary Repayments: Make voluntary payments to SLC throughout the year instead of waiting for Self Assessment (£80/month).
Contact SLC: Inform the Student Loans Company about your multiple income sources. They may be able to adjust your tax code for better collection.
Budget for January: Set aside £80 per month to cover the Self Assessment payment due on 31 January.
Two part-time jobs at £18,000 each:
• PAYE: £0 deductions (each below £2,275/month threshold)
• Self Assessment: £783 due on combined £36,000 income
Main job £25,000 + side income £8,000:
• PAYE: Small deductions from main job only
• Self Assessment: Additional payment due on the combined higher income
If you have multiple jobs or side income and are concerned about student loan repayments, contact the Student Loans Company or consider setting up voluntary repayments.