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.
What does tax code BR mean?
Tax code BR means all income from this employer is taxed at a flat 20% with no Personal Allowance. Your allowance is already used by another job or pension. On £30,000, you would pay £6,000 in Income Tax instead of £3,486 on 1257L.
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.
Tax code BR vs 1257L: take-home comparison
How much more or less you take home on BR compared to the standard 1257L code at the same gross salary. A negative number means less take-home pay.
| Gross Salary | 1257L Take-Home | BR Take-Home | Difference |
|---|---|---|---|
| £20,000 | £17,920 | £15,406 | -£2,514 |
| £25,000 | £21,520 | £19,006 | -£2,514 |
| £30,000 | £25,120 | £22,606 | -£2,514 |
| £35,000 | £28,720 | £26,206 | -£2,514 |
| £40,000 | £32,320 | £29,806 | -£2,514 |
| £45,000 | £35,920 | £33,406 | -£2,514 |
| £50,000 | £39,520 | £37,006 | -£2,514 |
| £60,000 | £45,357 | £44,789 | -£568 |
| £75,000 | £54,057 | £56,489 | +£2,432 |
| £100,000 | £68,557 | £75,989 | +£7,432 |
Both columns include Income Tax and National Insurance. No pension or student loan deductions. 1257L = standard Personal Allowance of £12,570.
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.
How do I change tax code BR?
To change tax code BR, contact HMRC directly on 0300 200 3300 or update your details via your Personal Tax Account at gov.uk. Your employer cannot change your tax code — only HMRC can issue a new one. Once HMRC updates your code, they will notify your employer and the change will appear on your next payslip.
Will I get a refund if tax code BR was applied in error?
If tax code BR was applied incorrectly and caused you to overpay Income Tax, HMRC will refund the overpayment. This typically happens automatically via a P800 tax calculation sent after the tax year ends (April). For a faster refund, contact HMRC directly once the correct code has been issued. Overpayments can also be reclaimed through Self Assessment if you file a return.
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