A BR tax code means your employer or pension provider taxes all your income from that source at the basic rate of 20%, without applying any Personal Allowance. It is usually used for a second job or pension.
This guide explains why this code is issued, how it affects take-home pay, and how to correct it if it’s wrong.
Why Have I Been Given This Code?
A BR code usually appears in one of these situations:
- A second job or pension: your Personal Allowance is already used against your main income, so HMRC taxes the second source at 20%.
- A new job where you confirm other income: your starter checklist shows you have another job or pension, so your new employer applies BR.
- A change HMRC has not processed yet: HMRC has not updated your income details, so your employer or pension provider uses BR until a new code arrives.
On a genuine second job or pension, BR is often the correct long-term code. In other cases, it works as a temporary placeholder until HMRC issues your personalised code.
If you give your new employer no starter information at all, they normally use 0T rather than BR.
How Much Tax Will I Pay?
Your employer deducts a flat 20% on all income under this code, whatever you earn. No Personal Allowance covers the first part of your pay. This differs from a standard code such as 1257L, where the first £12,570 of annual income stays tax-free before the basic rate applies. It also differs from a K tax code, which adds untaxed income to your pay instead of just removing the allowance.
If this is your only income, BR usually leads to an overpayment, because no allowance reduces the tax on it.
If your total income puts you in the higher rate band, BR still deducts only 20% through payroll. HMRC then collects the extra tax through a tax code change or your Self Assessment return.
BR Versus 0T: What Is the Difference?
BR taxes all income at 20% only. 0T taxes income across every band, with no Personal Allowance. People often call both “emergency codes”, but HMRC’s official emergency code is 1257L on a non-cumulative basis (shown as W1, M1 or X).
- BR uses the basic rate alone, whatever your level of pay.
- 0T applies basic, higher and additional rates as pay rises, so it can take more tax than BR on larger incomes.
Employers generally use 0T when they have no tax code information at all. They apply BR when you confirm your Personal Allowance is already used elsewhere, such as on your main job.
Will I Get a Refund?
Whether you get a refund depends on your total income from all sources for the tax year. If this code leads to too much tax overall, HMRC repays the difference. This happens through payroll once the correct code applies, or after the year ends through a P800 calculation or your Self Assessment return. It is common on a second job or a new pension, where a temporary BR code ignored an unused Personal Allowance.
Where BR applies correctly, no refund is due. For example, if your Personal Allowance already covers your main job, the 20% on your second income simply reflects the tax you owe.
How Do I Get It Changed?
To correct this code, contact HMRC through your Personal Tax Account or by phone. HMRC needs:
- Details of every current income source, including employers and pension providers
- Confirmation of which income source should carry your Personal Allowance
- Your National Insurance number, to verify your identity
Once HMRC reviews your case, it sends an updated code to your employer or pension provider. Payroll then applies it from the next pay run. If HMRC issues the new code on a cumulative basis, payroll also refunds any overpaid tax for the current year. If it issues the code on a W1 or M1 basis, HMRC settles any refund after the tax year ends.
Employers can prevent many of these problems by checking starter information and tax codes as soon as a new employee joins. Businesses using our managed payroll service in Slough have new starter codes checked before the first pay run.
Does This Apply to a Second Job?
Yes. A BR code is one of the most common results of starting a second job. HMRC normally gives your full Personal Allowance to your main income and applies BR to the second job, so that income does not go untaxed.
If your main job pays less than the Personal Allowance, you can move the unused part to your second job. To do this, ask HMRC to split your allowance between the two codes.
Contractors and directors often have income from more than one source, such as a salary and dividends. Check your tax codes at the start of each tax year to make sure your allowance sits against the right source. Your mix of salary and dividends also decides how much of the allowance your salary actually uses.
Can I Claim Back an Overpayment?
Yes. There are two main routes:
- A tax code correction, which adjusts your future payroll deductions and can refund tax already overpaid this year.
- A Self Assessment tax return, which reconciles your total income and tax paid for the full year.
If you are not in Self Assessment, HMRC reconciles your year automatically and sends a P800 calculation when a refund is due.
HMRC calculates any refund against your total income and tax paid across the whole tax year, not against a single payslip.
Frequently Asked Questions
What does BR mean on a payslip?
It means your employer is taxing all pay from that job at the basic rate of 20%, with no tax-free Personal Allowance. It usually appears when this is not your main source of income.
Is BR an emergency tax code?
Not officially. People often call it one because it can appear temporarily when you start a new job. HMRC’s official emergency code is 1257L with W1, M1 or X after it.
How long does a BR tax code last?
On a genuine second job or pension, it can stay in place for as long as that income continues. If it was applied by mistake, it lasts until HMRC sends your employer a corrected code, usually after you update your details in your Personal Tax Account.
Can I have a BR code on my main job?
You can, but it is usually a mistake if this is your only or main income. Contact HMRC so it can move your Personal Allowance to this job and refund any overpaid tax.
Is there a Scottish or Welsh version of the BR tax code?
Yes. Scottish taxpayers get the code SBR, which taxes all income from that source at the Scottish basic rate. Welsh taxpayers get CBR, which applies the Welsh basic rate. Both work the same way as BR: no Personal Allowance is given against that job or pension.