BR vs 0T Tax Code: Which Should I Be On? UK 2026/27 Comparison

If your payslip shows a BR or 0T tax code, you are paying tax in a way that ignores your Personal Allowance - and the difference between the two matters. BR taxes you at exactly 20% on every pound. 0T taxes you progressively (20%, then 40%, then 45%) but still without your £12,570 tax-free band. This guide compares the two and tells you which you should actually be on.

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At-a-glance comparison

Feature	BR	0T
Personal Allowance applied	None	None
Basic rate (20%)	All income	Income up to £37,700 over PA equivalent
Higher rate (40%)	Never	Income £37,700-£125,140
Additional rate (45%)	Never	Income above £125,140
Typical use	Second job/pension	First job after no P45, or Personal Allowance withdrawn
Cumulative or non-cumulative	Non-cumulative	Usually non-cumulative
Refund route at year-end	Often via P800	Often via P800 or Self Assessment

What BR means

BR stands for "Basic Rate". Every £ of taxable income from this employment is taxed at 20%. It's the standard code for a second job or second pension where your full Personal Allowance is already used by your main employment.

When BR is correct

You have a main job paying at least £12,570/year that uses your full Personal Allowance, and a second job (e.g. weekend bar work, freelance contract) where the BR code is applied. The arithmetic works because your main job consumes your PA and the second job correctly pays 20% on every £ from £0.

When BR is wrong

You only have one job but the employer applied BR (you should be on 1257L).
Your second job earnings push your total annual income above £50,270 (the higher-rate threshold). BR caps you at 20% even when you should be paying 40% on the excess. HMRC reconciles via P800 after year end - you'll owe additional tax.
You're a Scottish or Welsh taxpayer but the BR code (rest-of-UK) was applied. Should be SBR (Scotland) or CBR (Wales).

BR worked example

You have a main job earning £30,000/year (cumulative 1257L code, all PA there) and a second job earning £8,000/year (BR code).

Second job, weekly £153.85 gross:
  Tax (BR @ 20%):           £30.77
  NI (no NI on second job
  if main earnings exceed
  the threshold):                Variable
  Net:                       £123.08+

What 0T means

0T means zero allowance - no Personal Allowance, no Marriage Allowance, no other adjustments. Tax is calculated on the standard banded rates: 20% basic, 40% higher, 45% additional.

When 0T is correct

You started a new job and haven't given your employer a P45 or completed a starter checklist.
Your Personal Allowance has been withdrawn because your income exceeds £100,000 (full taper to zero by £125,140).
Your tax code was deliberately set to 0T by HMRC because of an unusual situation (fully foreign-resident with UK earnings, certain trust arrangements).

When 0T is wrong

You have a P45 from your previous job that the new employer hasn't processed.
You completed a starter checklist Statement A or B, but the employer didn't apply your basic rate band.
Your earnings are well below £100,000 - 0T is over-deducting tax.

0T worked example

You earn £50,000/year, paid monthly, on a 0T code with no Personal Allowance applied:

Monthly gross:                  £4,166.67

Tax on first £3,141.67 @ 20%:     £628.33
Tax on next £1,025.00 @ 40%:      £410.00
                                  --------
Total monthly tax:              £1,038.33

(vs £499.83 on cumulative 1257L. Over-deduction:
£538.50/month, ~£6,460/year - refundable.)

How to tell which one you have

Your tax code is on every payslip, usually at the top right. Look for the literal text:

BR - Basic Rate code (20% on all income)
0T - zero-allowance code (banded rates without PA)
0T W1 or 0T M1 or 0T X - non-cumulative variants
BR W1 etc. - non-cumulative BR
SBR / CBR - Scottish / Welsh BR equivalents
S0T / C0T - Scottish / Welsh 0T equivalents

How to switch off BR or 0T

If you've decided your code is wrong:

Sign in to your Personal Tax Account at gov.uk/personal-tax-account.
Click "Check your tax code". You'll see the active code(s) for each employer.
For a wrong BR/0T on your only job: report your circumstances. If you have a P45 not yet submitted, send it to the employer. If you completed a wrong starter checklist, contact your employer's payroll.
For a missing P45: ask your previous employer to re-issue. They are legally required to provide one.
HMRC re-issues a corrected tax code to your employer within 1-4 weeks. Your next pay period (or the one after) reflects the new code.
Any over-deduction is auto-refunded through your next pay packet IF the new code is cumulative (no W1/M1/X suffix).

When to leave BR alone

Some BR situations are correct and should be left:

Genuine second job with main job using full PA - BR is correct.
A pension you're drawing while still working - pension on BR, employment cumulative.
A casual/freelance arrangement where you've explicitly chosen BR for simplicity.

Common payslip patterns and what they mean

What you see on payslip	What it means
`1257L`	Standard cumulative code with full PA
`1257L W1`	Same allowance but non-cumulative this period
`BR`	20% on everything, no PA - usually 2nd job
`BR W1`	Non-cumulative BR - temporary, usually clears
`0T`	No allowance, banded rates 20/40/45
`0T W1`	Same, non-cumulative - usually emergency
`D0`	All income at 40% (higher rate code)
`D1`	All income at 45% (additional rate code)
`K473`	Negative allowance - see our K-code guide

Refund mechanics if you've been on the wrong code

If BR or 0T over-deducted tax and you've been switched to a cumulative code:

Over-deduction is paid back through your next payslip automatically (a "negative tax" line).
End-of-year reconciliation via HMRC's P800 letter (issued from June onwards each year for the prior tax year) catches anything not corrected via payroll.
For older years (back to 4 tax years), file a Self Assessment or write to HMRC for a refund.

See our tax refund guide for the full process.

Disclaimer

PayslipIQ provides automated educational guidance based on the figures you supply. It is not regulated tax or financial advice. BR and 0T are emergency or specialist codes that should usually correct themselves once your full circumstances are reported to HMRC; for unusual situations or contested year-end reconciliations, contact HMRC on 0300 200 3300 or use a CTA-qualified tax adviser.