What does tax code BR mean?
By the PaySlipCheck Editorial team · 15 May 2026 · 5 min read
BR stands for "Basic Rate." It tells your employer to tax every penny from this job at 20% with no personal allowance applied. BR is correct if it's a second job or a pension where your personal allowance is being used somewhere else. It's wrong if it's your only source of income — and if it is, you're significantly overpaying and need to fix it quickly.
How BR is different from the standard code
The standard UK tax code (1257L) gives you £12,570 of tax-free personal allowance before any tax kicks in. BR throws that allowance away entirely — you're taxed 20% from the very first pound. On a £20,000 salary the difference is:
| Tax code | Income Tax on £20k | Take-home (before NI) |
|---|---|---|
| 1257L (standard) | £1,486 | £18,514 |
| BR (basic rate, no allowance) | £4,000 | £16,000 |
BR costs you £2,514 a year on a £20,000 salary versus the standard code. If BR is on your only job by mistake, that's a serious overpayment.
When BR is correct
HMRC issues BR codes deliberately for specific situations. It's not always an error.
Second job
You can only use your £12,570 personal allowance once. If you have two PAYE jobs, HMRC applies your full allowance to your main one (typically the higher-paid) and uses BR on the second so the second job pays 20% from £0 — which roughly matches what you'd actually owe if all the income were in one place.
A pension alongside a salary
If you take a private pension while still working, the pension provider often runs PAYE on BR for the same reason — your allowance is being used on your job.
Starting a new job without a P45
If you started a new job and your previous employer hasn't sent your P45 yet, HMRC may temporarily issue BR until they confirm your records. This is usually short-lived and a refund follows when your full allowance is reinstated.
When BR is wrong
BR is wrong if:
- It's on your only job and you don't have any other taxable income or pension.
- You've left the job HMRC thought was your main one, but they haven't moved your allowance to the new job yet.
- You retired and the pension provider used BR but your only other income (e.g. State Pension) is below the allowance.
In all these cases you should be on a normal code like 1257L. If you're not, you're overpaying tax and need to act.
How to fix a wrong BR code
- Check your HMRC Personal Tax Account at gov.uk/personal-tax-account. It shows your live tax codes for every employer, with reasoning. If it says BR but you can see your other job is no longer active, that's the fix to make.
- Use the "Tell HMRC about a change" service in your Personal Tax Account. You can confirm a job has ended, tell them about a new starter form, or update other circumstances.
- If you can't fix it online, call HMRC on 0300 200 3300. Have your National Insurance number and last payslip ready.
- Your employer cannot change your tax code — only HMRC can. Once HMRC updates the code, they send a P6 to your employer who applies it from the next pay period.
- Refunds happen automatically. When your code is corrected and you switch back to cumulative basis, your next payslip will include a refund of the overpaid tax for the year so far. If the year has already ended, HMRC issues a P800 letter and refunds by bank transfer or cheque.
How much have I overpaid on BR?
Quick rule of thumb: BR with no allowance costs you about £209 a month compared to 1257L — that's £12,570 of allowance × 20% Income Tax ÷ 12 months. So three months on the wrong BR code = roughly £628 overpaid. Six months = £1,257. A full tax year = £2,514.
You can check the exact amount with our tax code checker — set the code to BR and your salary to see the impact.
How quickly will I get a refund?
If the fix happens mid-tax-year, the refund comes through your next payslip — usually within one or two pay periods of HMRC updating the code. If the year has already ended, refunds via P800 typically arrive 4–8 weeks after HMRC reconciles your records (most P800s land in July–October each year).
Significant overpayments — £1,000+ — sometimes trigger a manual review which adds a few weeks. You can chase by logging into your Personal Tax Account.
BR vs other "flat rate" tax codes
| Code | Tax rate applied | When used |
|---|---|---|
| BR | 20% on everything | Second job / pension where allowance is used elsewhere |
| D0 | 40% on everything | Second income where main income has already used the basic-rate band |
| D1 | 45% on everything | Third income or where main income exceeds £125,140 |
| 0T | Standard bands (20%/40%/45%) from £0 — no allowance | Emergency code when HMRC has no info, or above £125,140 |
| NT | No tax | Rare special cases (seafarers, some non-residents) |
The key thing all "flat" codes share is they strip away the personal allowance. They're used when HMRC has decided your allowance belongs somewhere else, not because they want to penalise you.
Related: Decode BR in the tax code checker · What does 1257L mean? · K tax codes explained · How to read your UK payslip