Ask PayslipIQ · Last reviewed 2026-05-08
What does BR tax code mean?
BR stands for Basic Rate. It taxes every pound of pay from this employer at 20%, with no personal allowance. It is normally applied to a second job or pension where your tax-free allowance is being used at your main job.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.
BR is correct when you have already used your personal allowance on another income source. It is incorrect, and you will be overpaying, if this is your only job and BR was applied as an emergency placeholder.
If you only have one job, ask your employer's payroll team to confirm what tax code HMRC has issued for you. Then check your HMRC personal tax account at gov.uk to see what HMRC has on file.
Where BR has been applied incorrectly, HMRC normally refunds the overpaid tax through your next payslip once a corrected cumulative code is issued.
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Reviewed by PayslipIQ Editorial. Sources cited where applicable.
PayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension, benefits or employment advice. Always verify your payslip, tax code, deductions and take-home pay with your employer's payroll department, HMRC, your pension provider, a qualified accountant, tax adviser or another appropriately qualified professional.