BR Tax Code Meaning
The BR tax code means all your income is taxed at 20% basic rate. Common for second jobs with no tax-free allowance applied.
What Does BR Mean?
BR stands for 'Basic Rate' and means all your income from this job or pension is taxed at 20% with no Personal Allowance. You don't get any tax-free income - every pound you earn is taxed at the basic rate.
How BR Tax Code Works
With a BR tax code, your employer deducts 20% Income Tax from every pound you earn, plus National Insurance contributions. This is typically used for second jobs or additional pensions because your Personal Allowance (£12,570) is already being used against your main income source.
How BR Affects Your Take-Home Pay
Example: £10,000 (second job)
- Personal Allowance: £0 (used on main job)
- Taxable income: £10,000
- Income Tax (20% on all earnings): £10,000 × 20% = £2,000
- National Insurance: ~£844
- Total deductions: £2,844
Take-home pay: £7,156 per year (£596 per month)
When is BR Tax Code Used?
- •You have a second job and your main job uses your Personal Allowance
- •You have multiple sources of income (e.g., job + pension)
- •HMRC doesn't have enough information to give you the correct tax code
- •You're on an emergency tax code and haven't provided a P45
How to Check Your Tax Code
You can find your current tax code in several places:
- •Payslip: Look at the top of your monthly payslip
- •HMRC online: Sign in to your personal tax account at gov.uk
- •P60: Your end-of-year certificate from your employer
- •PAYE Coding Notice: Letter from HMRC when your code changes
Calculate Your Take-Home Pay
See exactly how BR affects your salary with our free calculator