What tax code BR actually means
Basic Rate on everything: 20% from the first pound, no personal allowance — normal for second jobs and pensions.
BR stands for Basic Rate. Every pound this employer or pension provider pays you is taxed at 20% — you get none of the £12,570 personal allowance against this income. That's usually correct for a second job or second pension, because your allowance is already being used by your main income. On £30,000, BR deducts £6,000.00 of income tax across 2025/26.
- Personal allowance
- £0 against this income
- Applies in
- England, NI & Wales (SBR in Scotland taxes at 20% too)
- Calculation
- Usually cumulative (BR W1/M1 exists)
See this salary on a different tax code → (opens the main calculator pre-filled with BR)
What does BR mean?
A BR code tells this payroll: skip the allowance, skip the higher bands, deduct a flat 20%. It exists because your personal allowance can only be applied once — normally by your main job. Without BR, a second income would wrongly hand you a second £12,570 tax-free, leaving you with a bill at year end.
BR is only accurate if all the income it covers really belongs in the basic rate band. If your combined income pushes past £50,270, a flat 20% on the second job under-taxes you — HMRC would normally switch that job to D0 (40%) or split your allowance between codes. The reverse is also true: if your main job pays less than £12,570, some of your allowance is going unused and you can ask HMRC to split it.
When you’ll see BR
- A second job, while your main job uses your full allowance.
- A workplace or private pension paid alongside a salary.
- Occupational sick pay or an annuity from a third-party provider.
- A new job where your starter checklist said this isn't your only job.
BR vs other common codes
| Code | Personal allowance | How income is taxed |
|---|---|---|
| 1257L | £12,570 | Standard bands after the allowance |
| BR | £0 | Flat 20% on everything |
| 0T | £0 | Normal bands from the first pound |
| D0 | £0 | Flat 40% on everything |
BR questions, answered
Related tax codes
1257L
The standard code for 2025/26 — a £12,570 tax-free personal allowance, applied evenly across the year.
Decode itEmergency tax (W1/M1/X)
Usually a 1257L code with a W1, M1 or X suffix — each payday taxed in isolation until HMRC confirms your details.
Decode it0T
Zero allowance, but normal bands: 20%, then 40%, then 45% — from the very first pound you earn.
Decode itScottish tax codes (S)
An S at the front of your code means Scottish rates: six bands from 19% to 48% in 2025/26.
Decode itK codes
The code that works in reverse: instead of tax-free pay, a K code adds to your taxable income.
Decode itW1 / M1 / X
Suffixes, not codes: W1 (weekly), M1 (monthly) and X switch off the year-to-date calculation.
Decode itNot sure this is the right code for you?
Don’t take our word for it — HMRC holds the code they’ve actually issued for each of your jobs, and you can check it in two minutes.
Sources: tax codes — gov.uk · income tax rates · Scottish income tax