What Does Tax Code BR Mean?

Tax code BR means Basic Rate, and it tells your employer or pension provider to tax all of the income from that source at 20%, with no tax-free Personal Allowance applied to it. It is most often used for a second job or a second pension, where your allowance is already being used against your main income.

In this insight we explain what BR means, when it is the correct code, when it can mean you are paying too much, and what to do if it is wrong.

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Key Takeaways

• BR means all income from that job or pension is taxed at the basic rate of 20%, with no Personal Allowance set against it.
• It is usually correct for a second job or pension, because your tax-free allowance is already applied to your main income.
• BR can be wrong if it is used on your only source of income, which would mean you lose your Personal Allowance and overpay.
• If BR is applied incorrectly, contacting HMRC to update your code usually leads to a refund of any overpaid tax.

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What BR Means

A BR tax code applies the basic rate of 20% to every pound of income from that particular source, giving it none of your tax-free Personal Allowance. Unlike the standard code, there is no number, because there is no tax-free amount attached.

This makes sense when your Personal Allowance is already being used elsewhere. Your allowance can only be applied to one source of income at a time, so a second job or pension often gets a BR code to tax it cleanly at 20% from the first pound.

To understand how this fits with the wider system, see our guide to tax codes explained.

When BR Is Correct

BR is usually the right code when you have more than one source of PAYE income and your allowance is fully used against your main job. In that situation, taxing the second source at a flat 20% is often accurate, at least if you are a basic-rate taxpayer overall.

You are likely to see a correct BR code if you:

• Have a main job using the standard code and a second job on BR.
• Receive a main pension with your allowance, plus a second smaller pension on BR.
• Took extra work partway through the year and your allowance is committed elsewhere.

Our guide to the tax code for a second job explains how second incomes are taxed and when BR or D0 applies.

When BR Is Wrong

BR becomes a problem when it is applied to your only source of income. In that case you lose the benefit of your £12,570 Personal Allowance for 2025/26, and you are taxed at 20% from the very first pound, so you overpay.

This can happen if:

• You started a new job without a P45 and HMRC did not allocate your allowance.
• Your only job was mistakenly flagged as a second income.
• A previous job was not closed off properly in HMRC's records.

If BR is on your main or only job, it is worth checking straight away. You can compare what you should be paying using our income tax calculator.

Higher-Rate Versions: D0 and D1

BR taxes everything at the basic rate, but there are related codes for higher earners. D0 taxes all income from that source at the higher rate of 40%, and D1 taxes it all at the additional rate of 45%.

These are often used where a second job or pension pushes you into a higher band overall, so a flat 20% would leave you underpaying. If you are a higher earner with more than one income, D0 may be the accurate code rather than BR. A Scottish taxpayer may see slightly different bands and an S prefix on the code.

How to Fix an Incorrect BR Code

If you think BR is wrong for your situation:

• Check your personal tax account on GOV.UK to see how your allowance is allocated across your incomes.
• Give your employer your P45 or complete the starter checklist so HMRC has the full picture.
• Contact HMRC to move your Personal Allowance to the right job or correct the code.

Once fixed, any tax you overpaid because of the wrong code is normally refunded, either through your pay or after the tax year ends. If your code has moved unexpectedly, why has my tax code changed covers the usual causes, and an emergency tax code can sometimes look similar in effect.

Frequently asked questions

Is a BR tax code bad?

Not by itself. If you have a second job or pension and your allowance is used against your main income, BR is often correct. It only becomes a problem when it is applied to your only source of income, because then you lose your tax-free allowance and overpay.

Why is my second job taxed at BR?

Because your Personal Allowance is usually applied to your main job. Your allowance can only be used once, so the second job is taxed at the basic rate from the first pound. If you earn little in your main job, you may be able to ask HMRC to split your allowance instead.

Will I get a refund if BR was used by mistake?

Yes, in most cases. If BR was wrongly applied to your only income and you overpaid, HMRC normally refunds the difference once your correct code is in place, either through your pay or after the year ends.

What is the difference between BR and 0T?

Both give no Personal Allowance, but BR taxes everything at 20%, while 0T applies the normal rates and bands as your income rises, so higher earnings can be taxed at 40% or 45%. 0T is often used when HMRC has no details at all for that income.

General information only, not financial advice. If you think your tax code is wrong, contact HMRC.