What is a BR Tax Code?

A BR tax code means all income is taxed at 20% with no allowance. Learn why you have it, how to change it, and if you’re due a tax refund.

If you’ve been assigned a BR tax code, you may have noticed a higher tax deduction on your payslip. A BR (Basic Rate) tax code means all your income is taxed at 20% without applying the personal allowance (£12,570 in 2024/25).

This guide explains why you have a BR tax code, how to change it, whether you could be due a tax refund, and where to find your tax code.

What is a BR Tax Code and Why Have I Got One?

A BR tax code is used when your full income is taxed at 20%. It usually means HMRC assumes you've already used your tax-free personal allowance elsewhere, or they don’t have full income details.

Common Reasons for a BR Tax Code

  1. You have a second job or multiple sources of income.

  2. You recently changed jobs and didn’t provide a P45.

  3. Your employer doesn’t have full tax details from HMRC.

  4. You started receiving a pension while still working.

  5. You were previously self-employed and returned to PAYE.

If BR is incorrect, you may be paying too much tax.

Example of PAYE on Tax Code BR

If you earn £30,000 per year on a BR tax code:

  • £30,000 taxed at 20% = £6,000 tax deducted.

If you had a normal tax code (1257L), you would only be taxed on earnings above £12,570, reducing your tax bill.

How to Change My BR Tax Code

If you believe you shouldn’t be on a BR tax code:

  1. Check your payslip to confirm your tax code.

  2. Provide your P45 to your employer if you recently changed jobs.

  3. Log in to your HMRC online account to update your employment details.

  4. Contact HMRC at 0300 200 3300 to request a tax code review.

If your code changes, your employer will adjust future payslips automatically.

Could I Be Due a Tax Rebate?

Yes, if you paid too much tax due to a BR code, you may be due a refund.

  • HMRC may issue an automatic rebate if your code is corrected during the tax year.

  • If no refund is given, you can claim back overpaid tax by completing a P800 form or contacting HMRC.

What is a Tax Code?

A tax code tells employers how much tax to deduct from your salary under PAYE.

  • 1257L – Standard tax-free personal allowance.

  • BR – All income taxed at 20%.

  • D0 – All income taxed at 40%.

  • D1 – All income taxed at 45%.

  • 0T – No personal allowance applied (similar to BR but includes higher tax bands).

Do Self-Employed People Get a Tax Code?

No, self-employed individuals don’t have tax codes. Instead, they:

  • Report income through Self Assessment.

  • Calculate and pay tax manually each year.

  • Submit a tax return by 31 January to HMRC.

However, if a self-employed person also has PAYE income, they will have a tax code for their employment income.

Where Can You Find Your Tax Code?

Your tax code can be found on:

  • Payslips from your employer.

  • Your P45 or P60 (if changing jobs or at year-end).

  • HMRC online tax account (https://www.gov.uk/check-income-tax).

  • Your tax coding notice (PAYE Notice of Coding).

What is an Emergency Tax Code?

An emergency tax code is applied when HMRC doesn’t have enough information about your earnings.

Common Emergency Tax Codes

  • 1257L W1/M1/X – Temporary tax code using weekly/monthly income only.

  • 0T – No personal allowance applied (taxed at 20%, 40%, or 45%).

If you are on an emergency tax code, you may be paying more tax than necessary.

How to Fix an Emergency Tax Code

  1. Provide your P45 to your new employer.

  2. Complete a Starter Checklist (formerly P46) if you don’t have a P45.

  3. Contact HMRC to update your employment records.

Once corrected, overpaid tax will be refunded through payroll.

Common Tax Code Scenarios

  • One job, no extra income: 1257L Tax Code (Standard personal allowance)

  • Second job: BR, D0, or D1 (No personal allowance, taxed at 20%, 40%, or 45%)

  • New job, no P45: 0T or emergency code (No personal allowance applied)

  • Company benefits (e.g., car: Adjusted code (e.g., 1185L) (Personal allowance reduced)

  • Earning over £100,000: Adjusted tax code (Personal allowance reduced or removed)

Final Thoughts

A BR tax code means all income is taxed at 20% without a personal allowance. If you think BR is incorrect, check your payslip, update HMRC, and request a tax code review to avoid overpaying tax. If you overpaid, you may be eligible for a tax rebate.