What does BR tax code mean?

BR stands for Basic Rate. It tells your employer to tax 100% of your pay from that source at the 20% basic-rate band, with no Personal Allowance applied. HMRC's logic is that your PA is already being used by another income source (typically your main job or pension), so applying it again here would undercollect.

How much tax does BR take?

BR takes a flat 20% of every pound of pay from that source - so £100 gross becomes £80 after Income Tax (NI is separate). On £15,000 of BR income, Income Tax is £3,000; on £25,000, it is £5,000. There is no PA and no smoothing across the year, the calculation is the same every payslip.

Why am I on BR when I only have one job?

Most often because HMRC doesn't yet have your P45 or Starter Checklist, so they apply BR as a temporary safety net. Submit the paperwork (ask your new employer) and the code usually corrects to 1257L within 1-2 pay periods. Other reasons: HMRC still has an old employment record open from a job you have left (call HMRC to close it), or you ticked the wrong Starter Checklist statement.

Can I get a refund if BR over-taxed me?

Yes. At year-end HMRC reconciles across all your employments. If you paid too much - typical when total income is under £12,570 but BR was applied - you receive a P800 letter and an automatic refund or adjustment to next year's code. You don't need to file self-assessment for this. To speed it up, call HMRC and ask for the code to be corrected mid-year so the refund flows through your payslip rather than waiting until summer.

What's the difference between BR and 0T?

BR taxes everything at 20% (basic rate only). 0T removes the Personal Allowance and taxes against the standard bands - so the first £37,700 of pay from that source is at 20%, the next £74,870 at 40%, then 45%. HMRC uses 0T (instead of BR) when the second source is high enough that taxing it all at 20% would leave you owing significantly more at year-end.

Is BR a 20% emergency tax code?

BR is sometimes called an 'emergency' code in casual conversation, but technically it isn't - the official emergency code is 1257L W1/M1/X (which still gives you a slice of the PA). BR is used when HMRC believes another income holds your PA, while emergency 1257L W1/M1/X is used when HMRC has not yet reconciled year-to-date for your only source of pay. The difference matters: BR alone usually means you should not expect the PA back via this employer.

Does BR apply in Scotland?

Yes, but Scottish taxpayers on a second job may see SBR instead (Scottish basic rate). Because Scotland's basic rate is 20% (the intermediate rate of 21% kicks in at £15,398 in 2026/27), the effective rate from an SBR code usually matches BR for low-to-mid second-job earnings - but double-check your payslip if your total Scottish income is well into intermediate or higher territory.

Tax Code · 2026/27

BR Tax Code 2026/27: Basic Rate on Every Pound

BR stands for 'Basic Rate'. It taxes 100% of pay from that source at 20%, with no Personal Allowance. HMRC uses it most often on second jobs and pensions, where your £12,570 PA is already used up by the main income.

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What the BR tax code means

The BR tax code stands for 'Basic Rate'. Your employer applies zero Personal Allowance and taxes every pound of your pay at 20% - the basic-rate band. It is not the same as 'normal' PAYE; it assumes your PA is being used up elsewhere.

BR is HMRC's default for a second (or additional) employment when the primary job already claims the full £12,570 PA. It prevents the PA being applied twice, which would otherwise under-tax the second source and leave you with a bill at year-end.

BR can sometimes be applied when HMRC is missing information - for example, before you've submitted a Starter Checklist or P45 at a new job. In that temporary case, expect the code to change once HMRC has the full picture.

On a BR coded payslip the calculation is brutally simple: gross pay × 20% = Income Tax. There is no allowance, no banding, no year-to-date smoothing. Whether your total across all jobs is £15,000 or £80,000, BR alone takes 20% from this employer's payslip - HMRC corrects up (to D0 at 40%) or down (to a refund) only once the full picture is available.

When you'll see BR

You have a second job, and your main job uses your Personal Allowance (the normal setup).
You draw a pension while still employed - the pension gets BR if the salary uses the PA.
You started a new employer recently and haven't provided a P45 or Starter Checklist - HMRC temporarily applies BR until the picture clears.
Short-term contract/seasonal work added on top of a regular job.
You ticked Statement B on the Starter Checklist (this is your only job since 6 April but you have had another job in this tax year) - HMRC applies BR until the year-to-date is reconciled.

What to do if you have a BR code

Check your main employer (or primary pension provider) is using 1257L - not another variant that leaves your PA unused.
If the BR job is your only income source and your total earnings are under £12,570/year, you're being over-taxed and should contact HMRC. They'll refund the excess once the year-end reconciliation runs.
If your total across all jobs is below the higher-rate threshold, BR at 20% is exactly correct - no action needed.
If you're a higher-rate or additional-rate taxpayer overall, BR under-taxes the second job and you may owe more through self-assessment. HMRC will usually upgrade the code to D0 or D1 once they notice.
You can also rebalance the Personal Allowance across two jobs by phoning HMRC on 0300 200 3300 - useful if your second job pays more than the first, since the bigger income should hold the PA.

Worked example

£10,000 second-job income on BR: Income Tax is 20% × £10,000 = £2,000. National Insurance is separately calculated - Class 1 NI is assessed per employment, so each job has its own threshold. Take-home from this job alone (before NI) is £8,000. Your main job's PA applies only to that job's pay. If your main job pays £45,000 (still in basic-rate band), your total tax is exactly right - 20% on £42,430 from the main job + 20% on £10,000 from the BR job. If your main job pays £55,000 (higher rate), the £10,000 second job should really be taxed at 40% - HMRC will move the second-job code to D0 once the under-payment is visible.

Want to see the numbers for your own salary? Use the salary calculator and pick 2026/27 to see how BR interacts with your full take-home.

Frequently asked questions about BR

What does BR tax code mean?: BR stands for Basic Rate. It tells your employer to tax 100% of your pay from that source at the 20% basic-rate band, with no Personal Allowance applied. HMRC's logic is that your PA is already being used by another income source (typically your main job or pension), so applying it again here would undercollect.
How much tax does BR take?: BR takes a flat 20% of every pound of pay from that source - so £100 gross becomes £80 after Income Tax (NI is separate). On £15,000 of BR income, Income Tax is £3,000; on £25,000, it is £5,000. There is no PA and no smoothing across the year, the calculation is the same every payslip.
Why am I on BR when I only have one job?: Most often because HMRC doesn't yet have your P45 or Starter Checklist, so they apply BR as a temporary safety net. Submit the paperwork (ask your new employer) and the code usually corrects to 1257L within 1-2 pay periods. Other reasons: HMRC still has an old employment record open from a job you have left (call HMRC to close it), or you ticked the wrong Starter Checklist statement.
Can I get a refund if BR over-taxed me?: Yes. At year-end HMRC reconciles across all your employments. If you paid too much - typical when total income is under £12,570 but BR was applied - you receive a P800 letter and an automatic refund or adjustment to next year's code. You don't need to file self-assessment for this. To speed it up, call HMRC and ask for the code to be corrected mid-year so the refund flows through your payslip rather than waiting until summer.
What's the difference between BR and 0T?: BR taxes everything at 20% (basic rate only). 0T removes the Personal Allowance and taxes against the standard bands - so the first £37,700 of pay from that source is at 20%, the next £74,870 at 40%, then 45%. HMRC uses 0T (instead of BR) when the second source is high enough that taxing it all at 20% would leave you owing significantly more at year-end.
Is BR a 20% emergency tax code?: BR is sometimes called an 'emergency' code in casual conversation, but technically it isn't - the official emergency code is 1257L W1/M1/X (which still gives you a slice of the PA). BR is used when HMRC believes another income holds your PA, while emergency 1257L W1/M1/X is used when HMRC has not yet reconciled year-to-date for your only source of pay. The difference matters: BR alone usually means you should not expect the PA back via this employer.
Does BR apply in Scotland?: Yes, but Scottish taxpayers on a second job may see SBR instead (Scottish basic rate). Because Scotland's basic rate is 20% (the intermediate rate of 21% kicks in at £15,398 in 2026/27), the effective rate from an SBR code usually matches BR for low-to-mid second-job earnings - but double-check your payslip if your total Scottish income is well into intermediate or higher territory.

All UK tax codes →

Sources & further reading

All figures and definitions on this page reflect the 2026/27 UK tax year and are cross-checked against HMRC guidance.

HMRC — What your tax code means (official meanings for L, BR, D0, D1, K, 0T, NT, M, N, S, C, T)
HMRC — Income Tax rates and Personal Allowance (2026/27 bands and thresholds)
HMRC — Emergency tax codes (W1, M1 and X suffixes)
HMRC — Rates and thresholds for employers 2026 to 2027
HMRC — Your Personal Tax Account (check your current code and how it was calculated)
Our methodology & calculation sources →