A BR tax code means Basic Rate: every pound of that income is taxed at the basic rate of 20%, with no Personal Allowance applied to it. The clue is in the name, BR ignores your tax-free allowance entirely for this source of income.
This is part of our UK tax codes explained series.
What does the BR tax code mean?
Unlike 1257L, a BR code has no number, because there is no allowance to express. It tells your employer to tax the whole of this income at 20% from the first pound. There is no tax-free slice and (unlike 0T) no movement into the higher rates either, it is a flat 20% on everything paid under that code.
Why do I have a BR tax code?
The most common reason is a second job or a second pension. Your £12,570 Personal Allowance is normally used up against your main job, so HMRC applies BR to the second source to tax it at 20% from the start, on the assumption your main income has already taken your allowance.
You might also see BR temporarily when you start a new job without a P45, until HMRC works out the right code.
Is the BR tax code right for me?
BR is often correct for a second job, if your main job genuinely uses your full allowance. It can cost you money when it does not. For example:
- If your main job pays less than £12,570, part of your allowance is going unused while your second job is taxed at 20% from £1, you may be overpaying. HMRC can split your allowance across the two jobs instead.
- If BR is applied to your only job (perhaps after a missing P45), you are losing your whole allowance and almost certainly overpaying, fix it quickly.
What to do if the code is wrong
If you think your tax code is wrong, do not just wait, an incorrect code is corrected from the date HMRC updates it, and any over- or under-payment is squared up afterwards. Steps to take:
- Check your latest tax code notice (the "PAYE Coding Notice", form P2) in your HMRC personal tax account. It shows how the code was built up.
- Compare it to your real situation, one job or several, any benefits in kind, untaxed income, or earlier-year underpayments being collected.
- If BR is on your only income, this is the priority, you are being taxed from the first pound with no allowance at all.
- If your main job is low-paid, ask HMRC to split your Personal Allowance across both jobs rather than wasting it.
- Tell HMRC if anything is out of date, online, via the HMRC app, or by phone. They will issue a revised code to your employer.
- Watch your next payslip to confirm the new code has been applied and any refund has come through.
Frequently asked questions
How much tax does a BR code take?
A flat 20% of the income paid under that code, with no tax-free amount. So £500 of pay on a BR code means £100 of tax.
Is BR an emergency tax code?
Not exactly. BR is sometimes used while HMRC sorts out a new starter, but it is a normal code in its own right, most often for a second job. The true emergency codes are the W1, M1 and X versions.
How do I get off a BR code?
If it is wrong, tell HMRC your full income picture so they can reissue the right code, often a normal code on your main job and BR (correctly) on the second, or a split of your allowance across both.
Think your tax code is wrong? It is one of the most common payroll errors, and HMRC will not always spot it for you. Zmartly's Self Assessment and personal tax team can check your code against your circumstances and deal with HMRC on your behalf. Get in touch for a free review, or book a free Tax Health Check.
