Tax Code CBR Explained
CBR is the Welsh equivalent of the BR tax code — all income from this source is taxed at a flat 20% basic rate, with no Personal Allowance. The C prefix indicates the taxpayer is a Welsh resident. Since Welsh rates match England rates for 2025-26, the take-home pay on CBR is identical to BR. The prefix matters for HMRC's accounting of Welsh Rate of Income Tax revenue.
What does tax code CBR mean?
Tax code CBR is the Welsh version of BR. All income from this source is taxed at 20% with no Personal Allowance. Since Welsh rates match England for 2025-26, the take-home pay is identical to the English BR code.
Who gets tax code CBR?
Welsh residents with a second job, pension, or additional income source where the Personal Allowance is already allocated to their primary employment. As with BR in England, CBR is often seen when starting a new job, changing jobs, or taking on secondary work alongside a main income.
Welsh Rate of Income Tax: Wales sets its own Welsh Rates of Income Tax (WRIT) via the Senedd. For 2025-26, Welsh rates are identical to England rates (20% / 40% / 45%), so take-home pay is the same. The C prefix tracks revenue separately for the Welsh Government.
Take-home pay on tax code CBR — 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 CBR vs 1257L: take-home comparison
How much more or less you take home on CBR compared to the standard 1257L code at the same gross salary. A negative number means less take-home pay.
| Gross Salary | 1257L Take-Home | CBR 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 CBR, 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 CBR mean?
CBR is the Welsh equivalent of the BR tax code — all income from this source is taxed at a flat 20% basic rate, with no Personal Allowance. The C prefix indicates the taxpayer is a Welsh resident. Since Welsh rates match England rates for 2025-26, the take-home pay on CBR is identical to BR. The prefix matters for HMRC's accounting of Welsh Rate of Income Tax revenue.
Who gets tax code CBR?
Welsh residents with a second job, pension, or additional income source where the Personal Allowance is already allocated to their primary employment. As with BR in England, CBR is often seen when starting a new job, changing jobs, or taking on secondary work alongside a main income.
How much do I take home on tax code CBR earning £30,000?
On tax code CBR 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 CBR 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 CBR?
To change tax code CBR, 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 CBR was applied in error?
If tax code CBR 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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