What is Tax Code BR?
Tax code BR means all income from this source is taxed at 20% with no Personal Allowance applied.
Based on published HMRC 2026/27 tax thresholds
Last updated: 26 July 2026
Tax Code BR Explained
Tax code BR stands for Basic Rate. When you see BR on your payslip, it means your employer is deducting Income Tax at the flat 20% basic rate on all of your earnings from that job — with no Personal Allowance applied.
This is most commonly used for a second job or additional income source, because your Personal Allowance of £12,570 can only be allocated to one employer at a time. HMRC assumes your main job already uses your full allowance, so your second job pays tax from the first penny earned.
You might also receive a BR code when starting a new job without a P45, while HMRC processes your details. Once your information is confirmed, HMRC will usually update your code to the correct cumulative one.
If you are on BR and believe it is wrong — for example, if this is your only job — contact HMRC immediately, as you may be overpaying tax.
Comparison: Tax Code BR vs Standard 1257L
| Feature | Code BR | Standard 1257L |
|---|---|---|
| Tax-free Personal Allowance | None (£0) | £12,570 |
| Tax rate applied | 20% flat (basic rate) | 20% / 40% / 45% by band |
| Basis | Non-cumulative | Cumulative |
| Typical use | Second job or temp code | Primary employment |
| Monthly tax on £2,000 gross | £400 | ~£124 |
⚠️ When Does Tax Code BR Apply?
- You have a second job and your Personal Allowance is already used by your main employer
- You started a new job without providing a P45 and HMRC has not yet issued a cumulative code
- Your income from this source is irregular (e.g. casual or agency work)
- HMRC is collecting unpaid tax from a previous year and has allocated your allowance accordingly
Tax Code BR — FAQs
BR usually applies to a second job, where your Personal Allowance is already used by your primary employer, or when HMRC does not yet have your full income details. It is sometimes applied as a temporary measure.
If BR is your only job, yes — you are almost certainly overpaying tax because no Personal Allowance is being applied. Contact HMRC or update your details through your Personal Tax Account to get the correct code issued.
Contact HMRC on 0300 200 3300 or via your Personal Tax Account. If you have a P45 from a previous job, give it to your new employer promptly. HMRC will issue an updated code to your employer once they have verified your details.
It can, but it should not. BR on your main (or only) job means you are paying 20% tax with no allowance — an overpayment. You can reclaim any overpaid tax at the end of the tax year through Self Assessment or by calling HMRC.
Both remove your Personal Allowance, but 0T applies progressive rates (20%, 40%, 45%) depending on your income level, while BR applies a flat 20% regardless of how much you earn. High earners on a second job may actually pay less tax on BR than on 0T.
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