Tax code BR explained
All income taxed at 20% — no personal allowance. Here's exactly what it means for your payslip in 2026/27, who should have it, and what to do if it looks wrong.
What BR means
BR stands for Basic Rate. Every pound of income from this employment is taxed at 20%, with no tax-free personal allowance applied.
Who gets BR?
Most commonly applied to a second job or pension — your personal allowance is already used up by your main income, so the second source is taxed flat at 20%. It's also often used as a temporary code for new starters when the employer doesn't have your P45.
What you'd pay on BR
| Salary | Income tax | Take-home* | vs standard 1257L |
|---|---|---|---|
| £22,000 | £4,400 | £16,846 | −£2,514 |
| £30,000 | £6,000 | £22,606 | −£2,514 |
| £40,000 | £8,000 | £29,806 | −£2,514 |
| £55,000 | £11,000 | £40,889 | −£1,568 |
| £80,000 | £16,000 | £60,389 | +£3,432 |
*After income tax and employee National Insurance, 2026/27 rates, England/Wales/NI bands.
What you should do
If this is your only job, BR is almost certainly wrong and you're overpaying by up to £2,514/year — contact HMRC (0300 200 3300) or use your Personal Tax Account to fix it and claim a refund. If it's a second job earning under the basic-rate limit, it's usually correct.
Frequently asked questions
What does tax code BR mean?
All income taxed at 20% — no personal allowance. BR stands for Basic Rate. Every pound of income from this employment is taxed at 20%, with no tax-free personal allowance applied.
Is tax code BR wrong?
If this is your only job, BR is almost certainly wrong and you're overpaying by up to £2,514/year — contact HMRC (0300 200 3300) or use your Personal Tax Account to fix it and claim a refund. If it's a second job earning under the basic-rate limit, i
Who gets tax code BR?
Most commonly applied to a second job or pension — your personal allowance is already used up by your main income, so the second source is taxed flat at 20%. It's also often used as a temporary code for new starters when the employer doesn't have you