BR Tax Code Explained

What does BR tax code mean?

Payroll applies the basic rate to all taxable pay from the source using BR. It does not give that source any tax-free Personal Allowance.

This differs from a code such as 1257L, which normally gives that job or pension an allowance. HMRC explains the letters in its tax-code guidance.

How much tax do you pay on BR?

For 2026/27, the basic rate is 20% in England and Northern Ireland; Wales also uses 20%, with a C prefix on Welsh codes. This is Income Tax, not your total payslip deductions: National Insurance, pension or loan deductions may also apply. See the official rates and Personal Allowance guidance.

Scotland has different bands and S-prefixed codes. Check the complete code rather than assuming every Scottish code uses the same rate. Your final tax across all income depends on your wider circumstances, not just this one payroll code.

Why might BR be used for a second job or pension?

You have one Personal Allowance across your income sources. It is often used on the main job or pension, leaving another source without an allowance. BR may be appropriate when that other income falls within your basic-rate band.

For example, someone whose main job uses their allowance takes a part-time second job. HMRC may apply BR to the second job so the allowance is not given twice. This is illustrative: total earnings and the way HMRC allocates allowances can lead to a different code.

BR can also appear while employment details are being updated. Check your coding notice and the HMRC guide to tax on more than one job rather than assuming the reason.

What does BR X mean?

X indicates a non-cumulative basis, also called Week 1 or Month 1. Payroll works out tax for the current pay period without using earlier pay and tax from the tax year. NONCUM is another label for this basis, rather than a different tax rate.

The BR part still describes basic-rate treatment without an allowance. Because it is a flat-rate code, adding X does not necessarily change the deduction on the same pay. The marker does not prove that you have overpaid.

BR vs D0: what is the difference?

The difference is the rate applied to that source. If your other income already uses the basic-rate band, HMRC may instead use D0.

Is BR an emergency tax code?

BR by itself is not an emergency marker. W1, M1, X or NONCUM indicate the non-cumulative treatment described above; a second job can use BR as an ordinary arrangement.

Read our emergency tax-code guide or the official emergency-code explanation if your payslip includes one of those markers.

What should I do if BR looks wrong?

If this is your only job or pension and you expected an allowance, check the details HMRC holds. BR is not automatically wrong, but an old employment record or an incorrect income estimate may need updating.

HMRC explains how to check and update your code. WorkSmartMoney can explain codes and estimate pay; it cannot correct your code.

• Check the full code on your payslip, including any prefix or suffix.
• Compare it with your Personal Tax Account or HMRC app, and check which job or pension uses your Personal Allowance.
• Review employment, pension and estimated income details. Update missing or incorrect information and contact HMRC if the code still appears wrong.
• If payroll is using a different code from the latest HMRC notice, ask your employer or pension provider to check that they have received it.