Tax Code BR Explained
Tax code BR (Basic Rate) means all income from this source is taxed at a flat 20% — with no Personal Allowance applied. This is because your Personal Allowance is already being used against your main job. On a BR code, every pound you earn is subject to 20% Income Tax. National Insurance contributions still apply on top.
Who gets tax code BR?
People with a second job, a second pension, or a new job where HMRC has not yet issued a full tax code. It is commonly seen when starting a new role before a P45 or P46 is processed, or when taking on additional employment alongside a primary job that already consumes the full Personal Allowance.
Take-home pay on tax code BR — 2025-26 examples
Examples below show Income Tax and take-home pay at common salary levels. National Insurance (NI) is also shown separately — NI is not affected by your tax code and applies on the same basis for all employees.
| Gross Salary | Income Tax | NI (est.) | Take-Home | Effective IT Rate |
|---|---|---|---|---|
| £20,000 | £4,000 | £594 | £15,406 | 20.0% |
| £25,000 | £5,000 | £994 | £19,006 | 20.0% |
| £30,000 | £6,000 | £1,394 | £22,606 | 20.0% |
| £35,000 | £7,000 | £1,794 | £26,206 | 20.0% |
| £40,000 | £8,000 | £2,194 | £29,806 | 20.0% |
| £45,000 | £9,000 | £2,594 | £33,406 | 20.0% |
| £50,000 | £10,000 | £2,994 | £37,006 | 20.0% |
| £60,000 | £12,000 | £3,211 | £44,789 | 20.0% |
| £75,000 | £15,000 | £3,511 | £56,489 | 20.0% |
| £100,000 | £20,000 | £4,011 | £75,989 | 20.0% |
Take-home = Gross − Income Tax − National Insurance. No pension, student loan or other deductions included. NI calculated at 8% between £12,570–£50,270 and 2% above. Effective IT Rate shows Income Tax as a percentage of gross salary.
If you have tax code BR, here's what you should know
- Your tax code appears on your payslip, P60, and any correspondence from HMRC about your PAYE tax.
- Your employer uses this code to calculate how much Income Tax to deduct from each pay period — they do not set it themselves.
- If your circumstances change (new job, change in benefits, marriage allowance), your code should update automatically — but it is worth checking.
- You can view and update your tax code online via your Personal Tax Account at gov.uk.
- If you think your code is wrong, contact HMRC on 0300 200 3300 or use the HMRC app.
- An incorrect tax code can mean you overpay or underpay tax — overpayments are refunded, underpayments are collected in future years.
Frequently asked questions
What does tax code BR mean?
Tax code BR (Basic Rate) means all income from this source is taxed at a flat 20% — with no Personal Allowance applied. This is because your Personal Allowance is already being used against your main job. On a BR code, every pound you earn is subject to 20% Income Tax. National Insurance contributions still apply on top.
Who gets tax code BR?
People with a second job, a second pension, or a new job where HMRC has not yet issued a full tax code. It is commonly seen when starting a new role before a P45 or P46 is processed, or when taking on additional employment alongside a primary job that already consumes the full Personal Allowance.
How much do I take home on tax code BR earning £30,000?
On tax code BR with a £30,000 salary, you take home £22,606 per year (£1,884 per month) after Income Tax of £6,000.
Is tax code BR correct for me?
Your tax code is set by HMRC based on your individual circumstances. If you believe your tax code is wrong, contact HMRC on 0300 200 3300 or check your Personal Tax Account at gov.uk. An incorrect code could mean you are paying too much or too little tax.
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