Tax Code BR Explained

BR stands for Basic Rate. All income from that job or pension is taxed at 20%, with no tax-free Personal Allowance. GOV.UK says it is usually used when you have more than one job or pension, because your allowance is already being used against your main income.

How your pay is taxed on BR

Every pound is taxed at a flat 20% (Scotland: SBR at 20%), regardless of how much you earn there. Example (England): £30,000 a year on BR = £2,500 × 20% = £500 Income Tax a month, versus about £290.50 on 1257L – £209.50 more each month. On a £600-a-month second job, BR takes £120 a month. National Insurance is worked out separately for each job, so a small second job may pay no NI.

Tax-free allowance from this codeNone — all taxed at 20%Cumulative

Income tax with this code	£6,000
Income tax with standard 1257L	£3,486
Difference per month	£209.50

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Why you might have this code

This is a second job or pension and your Personal Allowance is used by your main job.
You ticked Statement C on the starter checklist (you have another job or pension).
HMRC thinks you have another source of income using your allowance – possibly out of date.
You started a job without a P45 and HMRC assigned BR temporarily.

What to do

Check the code HMRC holds for you in your personal tax account (GOV.UK sign-in) or the HMRC app – it also shows how the number was worked out.
Compare it with the code on your latest payslip. If they differ, ask payroll whether they have applied HMRC’s latest notice.
If this is now your only job, update HMRC via your personal tax account or the HMRC app so you get 1257L here.
If your main job pays less than £12,570, ask HMRC to split your allowance – the unused part can go to the second job (e.g. code 300L plus a reduced code in the main job).
If BR overtaxed you, the overpayment is refunded via payroll once corrected, or by P800 after the year ends.

See all tax codes or check your take-home with the UK salary calculator.

When BR collects exactly the right tax

BR is designed for a simple case: your main job uses your whole Personal Allowance, and your combined income stays under £50,270. Take £24,000 from a main job on 1257L and £8,000 from a second job on BR. The main job deducts £2,286 and the second job deducts £1,600, making £3,886 in total. That is exactly the tax on £32,000 of combined income. In this case, BR is the correct code.

HMRC’s PAYE Manual says BR gives no allowances and ignores the higher rates. As a rule it is operated cumulatively, which means payroll can refund tax within the year if the code changes. HMRC can tell your employer to use a week 1 / month 1 basis instead when it reduces a code to BR.

When BR takes too much: a small main job

BR overcharges if your “main” job doesn’t pay enough to use your whole allowance. With £9,000 from one job and £10,000 on BR from another, BR takes £2,000. Tax on your £19,000 combined income is only £1,286, so you overpay £714 for the year.

The fix is to ask HMRC to split your allowance. HMRC’s manual describes giving the job that has the unused allowance a code with a T suffix, and the other job a code with an L suffix. In this example the leftover £3,570 would move to the second job, which would then get a code of about 357L instead of BR. You can ask for this in your personal tax account or by phone.

When BR takes too little: crossing the higher-rate line

The opposite problem happens when the second job pushes your total over £50,270. With £45,000 from the main job and £15,000 on BR, the second job deducts £3,000. Part of that £15,000 is actually taxed at 40%, so the tax really due on it is £4,946. That leaves £1,946 unpaid.

HMRC’s answer is an “adjustment to tax rate bands” restriction (ARB) in your main job’s code. This reduces the basic-rate band at the main job, so tax there increases while the second job stays on BR. If the restriction isn’t there, or HMRC is using an old pay estimate, the shortfall arrives as a P800 after the year ends.

BR for new starters, Scotland and Wales

Employers use BR for a new starter who ticks Statement C on the starter checklist, meaning they have another job or pension. In Scotland the code is SBR and in Wales it is CBR. Both charge 20% – the Scottish basic rate and the Welsh basic rate respectively.

There is one Scottish exception. If your main job sits in the 19% starter band, HMRC codes the second job S0T rather than SBR, so it starts at the starter rate before moving up the Scottish bands. SBR there would charge 20% on income that should be taxed at 19%.

Frequently asked questions

Is BR an emergency tax code?

Not strictly – it's a normal HMRC code for second incomes. But employers also use BR when a new starter ticks Statement C or doesn't give enough information, which can feel like emergency tax.

Why is my BR code overtaxing me?

Because BR gives no tax-free pay. If this is your only job, or your main job earns under £12,570, you're paying 20% on money that should be tax-free. Ask HMRC to move or split your allowance.

What is SBR?

The Scottish version: all income taxed at the Scottish basic rate of 20%.

Should I be on BR if I earn over £50,270 in total?

Possibly not. If your combined income crosses the higher-rate threshold, HMRC may give your second job D0 (40%) instead. If BR stays, you may owe tax at year end.

Can BR tax be refunded during the year?

Yes, if BR is applied cumulatively, which is the normal method. When HMRC replaces it with a code that has an allowance, payroll refunds the extra tax on your next payday. A week 1 / month 1 BR code can’t refund within the year.

Can I choose which job gets my allowance?

Yes. HMRC’s manual says it should issue codes that follow your wishes on how your allowance and rate bands are used, and its staff can reallocate allowances between sources at your request. The total tax due for the year doesn’t change.

Does BR also mean I pay National Insurance at 20%?

No. The tax code only controls Income Tax. Each employer works out National Insurance on its own pay, so a small second job may have no NI deducted at all.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.