What Does the BR Tax Code Mean?
Basic Rate Code (Second Job)
description Core Meaning & Overview
The Basic Rate (BR) code deducts a flat 20% Income Tax from every pound earned from this employment source, with no tax-free allowance.
account_balance Legal & Payroll Mechanics (2026/27)
Assumes your entire £12,570 Personal Allowance is actively being utilized against a primary employment or pension. Your employer is legally instructed to deduct a flat 20% PAYE on all gross earnings, regardless of amount. Class 1 employee National Insurance applies separately based on pay period earnings.
warning Is Your BR Tax Code Correct?
If BR is on your main or only job, your £12,570 tax-free allowance is sitting unused elsewhere. Call HMRC on 0300 200 3300 or update your employment status via the HMRC app to allocate your 1257L code to your main job.
help Frequently Asked Questions About BR
What is the difference between BR and 0T?
BR taxes all income at a flat 20% regardless of how much you earn. 0T has zero allowance but moves up through the 20%, 40%, and 45% bands as earnings increase.
Should I have a BR code on my second job?
Yes, if your primary job pays over £12,570 per year and already uses your full Personal Allowance. If your primary job earns less than £12,570, you can ask HMRC to split your allowance across both jobs.