Subcontractor and Employee, tax help? CIS

alm721

Hi folks, am after some advice. My brother in law works as an employee for a company, part time. He also does some work for another company as a sub-contractor.
As such he is getting stopped 20% tax a source by the second company under cis rules. However, HMrc have classed his employment with company 1 as a second job and are therefore taking him on a BR code at 20% on the employment part.

Basically then he's not getting any tax free part of his wages, everything is getting taxed at 20%. I know that for his job he should get a tax free allowance *basic 747l code) But does he get the same for the subcontracting?

To put it another way. If you were subcontracting all the time with nothing else. Would you pay 20% on everything or do you still have a personal tax code?

Thanks