BR tax code explained
BR means all taxable pay from that employment or pension is taxed at the basic rate, with no Personal Allowance built into that code. It is common on second jobs where your allowance is used elsewhere.
What does BR mean?
BR stands for basic rate. It tells payroll to apply the basic Income Tax rate to all taxable pay from that source rather than giving that job part of your Personal Allowance.
Why is BR common on a second job?
You only have one Personal Allowance. If HMRC allocates the allowance to your main job, a second employment may use BR so it does not duplicate the allowance.
Can BR be wrong?
Yes. BR may over-deduct tax if your overall income is low enough that some allowance should be allocated to that job, or under-deduct if your combined income belongs in higher-rate bands. The correct position depends on total income, not one payslip.
What should you do if BR looks wrong?
Check your HMRC account and the expected annual income shown for each employment. Your employer cannot simply choose a different code; payroll uses the tax code HMRC supplies.
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FAQs
Does BR mean 20% tax?
For taxpayers whose basic rate is 20%, BR applies the basic rate to all taxable pay from that source. Scottish Income Tax uses different coding conventions and rates.
Why am I on BR in my first job?
HMRC may be treating another job or pension as the place where your allowance is used, or it may have incomplete information. Check your records with HMRC.
Is BR an emergency tax code?
BR is a tax code that applies the basic rate to all pay from that source. It is not the same thing as the W1, M1 or X emergency-code basis.