Answers · UK 2025/26
Why is my tax code BR?
Tax code BR means every penny of pay from that employment is taxed at the 20% basic rate with no Personal Allowance. HMRC usually applies BR to a second job or pension because your £12,570 allowance is being used by your main income. It is normally correct, not an error.
Full answer
BR stands for "basic rate". With this code your employer deducts a flat 20% Income Tax from every pound, ignoring the £12,570 Personal Allowance. HMRC issues BR when it believes the Personal Allowance is already used by another job, occupational pension or main employment, so the second source needs to be taxed in full. Worked example: a second job paying £8,000 a year with BR returns Income Tax of £8,000 × 20% = £1,600. If your total income across both jobs stays inside the basic-rate band (under £50,270) BR is exactly right. Problems arise when your combined income pushes you into the higher-rate band — BR keeps deducting only 20% but you actually owe 40% on the slice above £50,270, leaving you with an underpayment at year end. The opposite happens if your main job pays under £12,570: you would be wasting allowance and BR overtaxes you. Tell HMRC via your Personal Tax Account or by calling 0300 200 3300 to split the allowance (codes like 500L/757L) between jobs, or apply for a refund using form P50/P800. After leaving a job, the new employer may issue BR temporarily until your P45 arrives — request a corrected code so any overpayment is refunded via the next payslip.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.