What Does BR Tax Code Mean?

When you have a BR tax code, you'll pay 20% tax on every pound you earn from that source, regardless of your total income level. This is different from the standard tax code (1257L), which gives you a tax-free Personal Allowance before tax is deducted.

When you might have a BR tax code

Second job

If you have a second job, your Personal Allowance is usually applied to your main job only. Your second job will typically have a BR tax code, which means it's taxed at 20% from the first pound. This ensures you don't get the benefit of your Personal Allowance twice.

Pension income

If you receive a pension while you're still working, your pension may have a BR tax code if your Personal Allowance is already being used by your employment income. This means your pension is taxed at 20% from the first pound.

Multiple income sources

If you have multiple sources of income and your Personal Allowance is already applied to one source, other sources may be given a BR tax code to ensure you don't use your Personal Allowance more than once.

What BR tax code means for you

• All income from that job is taxed at 20% from the first pound
• You don't get a tax-free Personal Allowance on that income
• This is normal if you have multiple jobs or income sources
• Your total income across all sources determines which tax bands apply
• If your total income pushes you into a higher tax band, you may need to pay additional tax through Self Assessment

Is BR tax code correct?

BR tax code is usually correct if you have a second job or multiple income sources. However, if you only have one job and you have a BR code, it may be wrong. Check with HMRC or your personal tax account to confirm your tax code is correct.

If you think your BR tax code is wrong, contact HMRC. They can review your circumstances and issue the correct tax code if needed. If you've overpaid tax due to an incorrect BR code, you'll usually get a refund automatically.

What you can do

If you have a BR tax code, make sure it's correct for your circumstances. If you only have one job and you have a BR code, it's likely wrong and you should contact HMRC.

Use our tax calculator to estimate how much tax you should be paying based on your total income. This helps you understand if your BR tax code is resulting in the correct amount of tax.

Keep track of your payslips from all jobs. At the end of the tax year, check your P60 forms to see your total income and tax paid. If you've overpaid or underpaid tax, HMRC will usually adjust it automatically or you may need to complete a Self Assessment.

Related guides

For more information about UK tax and tax codes, see our UK Tax Guide. If you have a second job, read our guide on tax on second jobs. If you want to understand emergency tax, see our guide on what emergency tax is.