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What is a BR tax code and what does it mean for you?

Last updated November 2025

Seeing a BR tax code on your payslip can be confusing, but it’s nothing to panic about. It simply means you’re being taxed at the basic rate of 20% on all income from that job, without any tax-free Personal Allowance applied.

BR stands for Basic Rate and it’s often used in the PAYE system when you have more than one job or when HMRC doesn’t have the right information about your situation. It’s a way of making sure some tax is collected while things are being sorted.

Being on a BR code isn’t unusual, but you could end up overpaying tax if it’s wrong or applied for too long. However, it’s usually easy to fix your tax code and RIFT can help you get it sorted.

Example of PAYE on tax code BR

Let’s say you’ve got two jobs. Your main job is on the standard 1257L tax code, which means you’re getting your full Personal Allowance, where the first £12,570 of your income is tax-free.

Now, your second job is taxed under the BR tax code. That means every penny you earn from that second job is taxed at 20%, with no allowance applied.

This setup is expected if you’re working more than one job. HMRC usually applies your Personal Allowance to the job paying you the most, while the second job gets taxed at the basic rate.

You might also get a BR code if your employer doesn’t have the right starter information or if you’ve recently changed jobs and HMRC is waiting on updates. It’s a catch-all code that’s often temporary but it can lead to you overpaying tax if it stays in place too long.

How to change my BR tax code

A BR tax code can be temporary and in many cases HMRC will update it automatically once they’ve got the right information. For example, HMRC can adjust your code without you needing to do anything if you start a new job and your employer sends the correct starter details or if your previous employer submits your leaving info through the PAYE system.

But sometimes you need to step in and change your tax code. If your tax code looks wrong or hasn’t changed when it should’ve, it’s your responsibility to get it fixed. You can check your current tax code in your HMRC online account or by looking at your payslip or P45. Common reasons for incorrect tax codes include:

Changing jobs and HMRC not being updated
Having multiple jobs or pensions
Not claiming Marriage Allowance
Incorrect or missing info from an employer

If you’re claiming a tax refund with us, we’ll check and correct your tax code as part of the service so you don’t have to deal with HMRC yourself.

How to change your tax code

Could I be due a tax rebate?

If you’ve been on the wrong tax code, like BR, there’s a good chance you’ve paid more tax than you needed to and that means you could be due a refund. This often happens when:

You start or leave a job part-way through the tax year
Your employer uses the wrong information when setting up your payroll
You’re not getting your Personal Allowance
You’re eligible for Marriage Allowance but haven’t claimed it

These situations are more common than you might think, especially if you’ve changed jobs, work in multiple roles or didn’t give your employer a P45.

We can check if you’re owed anything and handle the claim from start to finish. We’ll make sure your tax code’s right and get back what you’re due.

Start your claim for free >

Free tax rebate estimateUse our tax rebate calculator

Not sure if you’re owed money back from HMRC? Our tax rebate calculator makes it easy to find out. Just answer a few quick questions about your work and income and we’ll give you an instant estimate of how much you could claim.

It only takes a few seconds and requires no complicated forms or hassle. Whether it’s due to the BR tax code or something else, we’ll help you work out what you’re owed.

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How we help

A BR tax code isn’t unusual but you could be handing over more tax than you need to if it’s wrong or left unchecked. Thankfully, it’s usually quick to fix and even easier when you’ve got the right support.

There could be hundreds or even thousands of pounds sitting with HMRC that should be back in your pocket. Don’t leave it there.

Think you’re on the wrong tax code? Don’t let HMRC keep your cash. Get in touch with us and claim it back.

BR tax code FAQs

What does BR mean in a tax code?

BR stands for Basic Rate. It means you’re paying 20% tax on all earnings from a particular job, with no Personal Allowance applied. It’s common when you have more than one job or HMRC doesn’t have full information.

Is the BR tax code bad?

Not necessarily, but it can lead to overpaying tax if it’s applied incorrectly. It’s just a signal that no tax-free allowance is being used on that income.

Can I get a refund if I was on the BR tax code?

You could be due a refund if you’ve paid too much tax while on the BR code. RIFT can check your records and handle the claim on your behalf to get back what you’re owed.

How do I fix the BR tax code?

You can fix an incorrect BR tax code by updating HMRC either through your online account or by contacting them directly. If you’re claiming with RIFT, we’ll take care of this as part of our service.

Does the BR tax code apply to second jobs?

The BR tax code is commonly used for second jobs where your Personal Allowance has already been used on your main job. Everything earned in the second job is then taxed at 20%.

What’s the difference between BR and 1257L tax codes?

1257L is the standard code that includes your Personal Allowance, meaning the first £12,570 you earn in a year is tax-free. BR doesn’t include any allowance, so all your income is taxed at 20%.

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What is a BR tax code and what does it mean for you?

Example of PAYE on tax code BR

How to change my BR tax code

Could I be due a tax rebate?

Free tax rebate estimateUse our tax rebate calculator

How we help

BR tax code FAQs

What does BR mean in a tax code?

Is the BR tax code bad?

Can I get a refund if I was on the BR tax code?

How do I fix the BR tax code?

Does the BR tax code apply to second jobs?

What’s the difference between BR and 1257L tax codes?

Want more?Want to save some money?

More on tax codes

What is a 1257l tax code?

Am I on the wrong tax code?

HMRC tax codes explained

What is a BR tax code and what does it mean for you?​

Example of PAYE on tax code BR

How to change my BR tax code

Could I be due a tax rebate?

Free tax rebate estimateUse our tax rebate calculator

How we help

BR tax code FAQs

What does BR mean in a tax code?

Is the BR tax code bad?

Can I get a refund if I was on the BR tax code?

How do I fix the BR tax code?

Does the BR tax code apply to second jobs?

What’s the difference between BR and 1257L tax codes?

Want more?Want to save some money?

More on tax codes

What is a 1257l tax code?

Am I on the wrong tax code?

HMRC tax codes explained

What is a BR tax code and what does it mean for you?