By Tax Calculator UK · Published · 7 min read
What tax code BR means
BR stands for basic rate. GOV.UK defines it as all your income from that job or pension being taxed at the basic rate, and says it is usually used if you have more than one job or pension. The important part is what is missing: there is no tax-free allowance built into BR, so tax starts on the first pound.
That sets it apart from 1257L, the code most people with one job have, which gives you £12,570 a year free of tax before the 20% rate begins. On BR, HMRC assumes your allowance is already being used somewhere else. Our tax codes guide shows how a code is put together, and what is my tax code covers where to find yours.
Why you have a BR code
BR normally appears on a second income, because your Personal Allowance can only be spent once.
- A second job, while your main job already uses your allowance.
- A workplace pension or State Pension paid alongside a job, where the allowance is already applied to your pay.
- A second pension, or several small income sources.
- Occasionally as a stopgap when an employer has no details for you, although the usual emergency codes end in W1, M1 or X instead. The emergency tax codes article lists those.
How much tax BR takes
On BR, every pound from that source is taxed at 20% in England, Wales and Northern Ireland. Nothing comes out first, so the maths is simple. What matters is whether this really is your second income.
National Insurance is worked out separately for each job, so a second job can owe it even after your main job has used the threshold. That part does not depend on your tax code.
| Pay from the BR job | Tax on BR | Tax on 1257L | Difference |
|---|---|---|---|
| £10,000 | £2,000 | £0 | £2,000 more on BR |
| £20,000 | £4,000 | £1,486 | £2,514 more on BR |
| £30,000 | £6,000 | £3,486 | £2,514 more on BR |
When BR is the right code
BR is correct when your other income uses up your whole £12,570 allowance. Say your main job pays £40,000: it takes £5,486 in Income Tax. A £10,000 second job on BR takes another £2,000. Together that is £7,486, which is exactly what £50,000 of total income costs, so nothing has been overpaid or underpaid.
It also works while your combined income stays under the £50,270 higher rate threshold. Beyond that, BR starts to take too little.
When BR costs you money
Two situations are worth a check.
- Your main job pays under £12,570. Part of your allowance is going unused, yet BR gives you none of it here. On a £20,000 second job that is roughly £2,514 taken that you did not owe. You can ask HMRC to split your allowance between jobs.
- Your combined income passes £50,270. BR only takes 20%, but the higher rate is 40%, so a £10,000 second job on BR leaves about £2,000 still owed once HMRC catches up. Codes D0 and D1 exist for this.
BR compared with D0, D1 and 0T
All four give you no tax-free allowance from that job. What changes is the rate applied to the pay.
| Code | Rate applied | Usually used when |
|---|---|---|
| BR | 20% basic rate | Second job or pension, with your allowance used on other income |
| D0 | 40% higher rate | Your other income already reaches the higher rate band |
| D1 | 45% additional rate | Your other income already reaches the additional rate band |
| 0T | Normal bands, no allowance | HMRC has no details for you, or your allowance has been withdrawn |
The same codes in Scotland and Wales
In Scotland the same codes carry an S prefix (SBR, SD0, SD1) and use the Scottish rates. In Wales they carry a C prefix (CBR, CD0, CD1) and use the Welsh rates. The idea is the same, only the rates differ.
Check your code and get it changed
Every code you hold is listed in your HMRC online account or the HMRC app, one per job or pension. Compare that list with what appears on your payslip, because a code HMRC has moved on from can still be sitting in payroll.
If BR is wrong, you can update your details in HMRC's tax code online service or contact HMRC to ask for a change. If you have only just started the job, HMRC normally settles the code within 35 days of your start date, so it can be worth waiting a pay period or two.
If BR has cost you tax, the overpayment usually comes back through payroll once the right code is in place. If you have left the job, you can claim a refund from GOV.UK after the tax year ends, or wait for HMRC's P800 calculation. The tax code FAQ answers the common follow-up questions, and why has my tax code changed covers what to do when a code moves by itself.
Work out your own figures
Enter BR and your pay from that job into the tax code calculator to see the tax for the year and for each payslip. To check both jobs together, put your combined income into the take-home pay calculator, or compare against our £25,000 after tax and £30,000 after tax pages.
Check each job before combining the income
A code used by one employer does not describe your entire year's position. Compare that job's deductions first, then assess the combined income separately when planning an annual budget.
Frequently asked questions
What does BR mean on a payslip?
Basic rate. All pay from that job or pension is taxed at 20% with no tax-free allowance, because HMRC assumes your Personal Allowance is already used on other income.
Check it on GOV.UK: Tax codes (opens GOV.UK in a new tab)
Is BR an emergency tax code?
Not usually. Emergency codes end in W1, M1 or X. An employer may use BR temporarily, but it is normally the correct code for a second job or pension.
Check it on GOV.UK: Tax codes (opens GOV.UK in a new tab)
Do I get any tax-free allowance on BR?
No, not from that job. If your other income does not use your full £12,570 allowance, ask HMRC to split it between your jobs.
Check it on GOV.UK: Tax codes (opens GOV.UK in a new tab) · Income Tax rates and allowances (opens GOV.UK in a new tab)
Should I be on BR or D0?
BR if your total income stays under £50,270. D0 if your other income already reaches the higher rate band, because D0 takes 40% rather than 20%.
Check it on GOV.UK: Tax codes (opens GOV.UK in a new tab)
Can I get tax back if BR is wrong?
Yes. Overpaid tax is normally refunded through payroll once HMRC issues the correct code, or after the tax year ends if you have left the job.
Check it on GOV.UK: Tax codes (opens GOV.UK in a new tab)
What is the difference between BR, SBR and CBR?
All three tax that income at the basic rate. SBR uses the Scottish basic rate and CBR the Welsh basic rate, so which one you get depends on where you live.
Check it on GOV.UK: Tax codes (opens GOV.UK in a new tab)