What does the BR tax code mean?
BR stands for basic rate. When BR is applied to a particular job or pension, all taxable income from that PAYE source is taxed at the basic rate.
No Personal Allowance is allocated through that particular source.
BR does not mean that all of your income from every job is taxed at the basic rate. It applies to the specific employment or pension carrying the BR code.
What tax rate does BR use?
For taxpayers using the standard England and Northern Ireland PAYE rates, BR currently means the whole taxable amount from that particular job or pension is taxed at the 20% basic rate.
Scottish and Welsh taxpayers can have regional versions of tax codes, including SBR and CBR.
| Code | General treatment |
|---|---|
| BR | All income from that PAYE source is taxed at the basic rate. |
| D0 | All income from that source is taxed at the higher rate. |
| D1 | All income from that source is taxed at the additional rate. |
| 0T | No Personal Allowance is available through that PAYE source, but tax is calculated using the relevant bands. |
The correct code depends on your total income and circumstances, not simply on whether a job is your first or second job.
Why might HMRC give you a BR tax code?
Second employment
Your Personal Allowance may already be allocated to your main job, leaving the second job taxable from the first pound.
Additional pension
Another pension can use BR where your available allowance is being used against another income source.
Multiple PAYE sources
HMRC may allocate different codes across several employments or pensions according to your expected total income.
Starter information
The information provided when a job starts can influence the initial PAYE code used by the employer.
Why is BR common with second jobs?
You normally have one Personal Allowance for the tax year, even if you have several jobs, pensions or other sources of income.
HMRC can therefore allocate your allowance to one source while another source is taxed using BR or another rate-specific code.
A second job does not give you a second Personal Allowance
Having two jobs does not mean you automatically receive the standard Personal Allowance twice.
BR can therefore be appropriate where your Personal Allowance is already being used against your main employment.
BR tax-code example
Main job plus temporary second job
Suppose your main job uses your Personal Allowance and you then earn £1,800 from a temporary second job.
If BR is appropriate, the second employer deducts basic-rate tax from the full £1,800 because no Personal Allowance is being allocated through that second job.
HMRC gives a similar example in its current guidance for people with more than one job.
Can BR be used on a pension?
Yes. BR can apply to a pension as well as employment income.
For example, your available Personal Allowance may be allocated against another pension or employment while an additional pension is taxed at the basic rate.
As with second jobs, whether BR is correct depends on your total taxable income and how HMRC has allocated your PAYE codes.
Is BR an emergency tax code?
Emergency PAYE codes are generally identified by markers such as W1, M1, X or NONCUM. BR is a rate-specific code telling payroll to tax all income from that source at the basic rate.
This means someone can be on BR without being on emergency tax.
Read our Emergency Tax Codes Guide for the difference between temporary non-cumulative codes and codes such as BR.
When might a BR tax code be wrong?
BR may need reviewing where HMRC's information about your jobs, pensions or expected total income is incomplete or out of date.
Examples can include:
- You have only one PAYE job but that job is using BR.
- Your previous job has ended but HMRC still treats it as active.
- Your Personal Allowance is allocated to the wrong employment.
- Your expected income has changed materially.
- You have stopped receiving a pension or other PAYE income.
None of these automatically proves the code is wrong, but they are sensible reasons to check your HMRC record.
Can a BR tax code cause you to overpay tax?
Potentially.
If BR is used when some of your Personal Allowance should have been available against that job or pension, too much Income Tax may be deducted.
The reverse can also happen. If BR is used but your total income means some income should actually be taxed at a higher rate, the deductions from that particular source may be too low.
The correct result depends on your total income across all jobs, pensions and other taxable sources for the tax year.
If you think you have paid too much, read our Overpaid Tax Guide .
What should you do if you think BR is wrong?
Check the payslip
Confirm which employment or pension actually carries the BR code.
Check all PAYE sources
Look at the tax codes attached to your other jobs and pensions and where your Personal Allowance is being used.
Check HMRC's income estimates
Review the employment, pension and estimated-income information held in your Personal Tax Account.
Update incorrect information
HMRC's current-year Income Tax service can be used to check your code and update relevant employment or pension details where appropriate.
For a broader explanation of how HMRC allocates PAYE codes, see our Tax Codes Explained Guide .
Reviewed & Updated
12 August 2026
2026/27
GO TAX REFUNDS
HM Revenue & Customs / GOV.UK
Tax codes depend on individual PAYE circumstances and may change during the tax year. This guide provides general information and should be considered alongside your current HMRC record and total taxable income.
BR Tax Code FAQs
What does BR mean on my payslip?
BR means all taxable income from that particular job or pension is taxed at the basic rate, with no Personal Allowance allocated through that source.
Is BR always a second-job tax code?
No, although HMRC commonly uses BR where someone has more than one job or pension. Whether it is correct depends on your overall income and PAYE circumstances.
Does BR mean 20% tax?
For standard England and Northern Ireland PAYE treatment, BR means all income from that source is taxed at the 20% basic rate. Scottish and Welsh taxpayers can have regional codes and different treatment.
Is BR an emergency tax code?
No. BR is not itself an emergency-code marker. Emergency codes are generally identified by W1, M1, X or NONCUM.
Why am I on BR if I only have one job?
It may mean HMRC's records still show another income source or that your allowance is allocated elsewhere. Check your Personal Tax Account and current employment details.
Can BR cause me to overpay tax?
Potentially. If some Personal Allowance should have been allocated to the BR income source, too much tax may have been deducted. Your overall tax position must be checked before concluding that a refund is due.
Can BR mean I have paid too little tax?
Yes. If your total income means some of that income should have been taxed at a higher rate, BR deductions may be lower than your eventual overall liability.
HMRC & GOV.UK Sources
This guide is reviewed against current HMRC guidance on BR tax codes, multiple employments and checking current-year Income Tax.
On a BR tax code and think you've paid too much?
Go Tax Refunds can help review your jobs, pensions, PAYE tax codes and Income Tax deductions to establish whether your BR code appears appropriate and whether an overpayment may have arisen.
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