Tax Code · 2026/27
CBR Tax Code: Welsh Basic Rate Flat 20%
CBR codes a Welsh taxpayer at the 20% Basic Rate on every pound of income from this employment, with no Personal Allowance applied. For 2026/27 the Welsh Rates of Income Tax mirror rest-of-UK rates exactly, so CBR cash effect is identical to BR.
What the CBR tax code means
CBR is the Welsh prefix (C) + BR (Basic Rate) combined. Applies 20% Welsh Rate of Income Tax (WRIT) to all income from this employment, no Personal Allowance.
The C prefix tells PAYE you are a Welsh taxpayer. BR (Basic Rate) means no PA - every pound taxed at 20%. For 2026/27 the Welsh Basic Rate = 20% (identical to rUK).
Welsh devolution gives the Senedd power to vary each Welsh Income Tax rate to any whole or half number of pence in the £, but the Welsh Government has not exercised this since the WRIT system launched in April 2019. So CBR functions identically to BR in cash terms for 2026/27.
When you'll see CBR
- You have a second job in Wales and your primary job has already used your full Personal Allowance.
- You have a Welsh-paid pension alongside other employment and HMRC has flagged the smaller income source for CBR coding.
- You started a new Welsh-employed job mid-year and your previous P45 showed PA already used at the previous employer.
What to do if you have a CBR code
- If your total combined income remains in the Basic Rate band: nothing - CBR is the correct code.
- If your total combined income crosses into Higher Rate (above £50,270): contact HMRC to switch to CD0 (40% Welsh Higher Rate flat) to avoid year-end Self Assessment liability.
- If you believe the C prefix is wrong (e.g. you moved out of Wales): update your address via Personal Tax Account. HMRC reissues BR from the next pay period.
Worked example
On CBR at £7,500 gross from a part-time Welsh-employed job (alongside £40,000 primary employment): all £7,500 taxed at 20% = £1,500. Plus NI as appropriate. The C prefix ensures the £1,500 tax is allocated to the Welsh Consolidated Fund rather than the UK Consolidated Fund.
Want to see the numbers for your own salary? Use the salary calculator and pick 2026/27 to see how CBR interacts with your full take-home.
Frequently asked questions about CBR
- Does CBR cost me more tax than BR?
- No - identical cash effect for 2026/27. The Welsh Rate of Income Tax (Basic) is 20%, the same as rest-of-UK Basic. The C prefix is administrative tracking only - it ensures the tax is correctly attributed to Welsh Government revenue. Your net pay is identical to a rUK CBR-equivalent BR code.
- When might Welsh rates diverge from rUK?
- The Welsh Government can announce variation in the December Welsh Budget, taking effect from 6 April. To date no divergence has been adopted. If Wales raised Basic Rate to 21%, CBR would apply 21% (not 20% rUK) on Basic Rate income for Welsh taxpayers.
- I work in England but live in Wales - which code applies?
- Welsh code (C prefix). Your residence determines Welsh-taxpayer status under Section 11 Wales Act 2014. Even if your employer is registered in England and your office is in London, a Welsh-resident employee gets C-prefix codes.
Related tax codes
- C prefix
The C prefix (e.g. C1257L, CBR, CD0) identifies you as a Welsh taxpayer for Income Tax. Welsh rates for 2026/27 currently mirror rUK (20%/40%/45%) but the Welsh government has devolved rate-setting power.
- BR
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.
- S prefix
The S prefix (e.g. S1257L, SBR, SD0) tells PAYE you are a Scottish taxpayer. Income Tax follows Scotland's 6-band system: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced, 48% top.
- SBR
SBR codes a Scottish taxpayer at the 20% Basic Rate on every pound of income from this employment, with no Personal Allowance applied. Used most often when your primary job has already used your full PA, and a second job needs all income taxed.
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 →