UK Tax Codes · 2026/27
BR Tax Code Meaning — Basic Rate (UK 2026/27)
Who gets the BR tax code?
BR is most commonly seen by people with a second job (where the first job already uses the 1257L allowance), people receiving an occupational or private pension while still working, and new starters whose paperwork hasn't fully arrived at HMRC. It can also appear temporarily on someone whose tax code hasn't been calculated yet.
How BR affects your pay
Every pound of income from a BR-coded source is taxed at 20% from the first pound. There's no tax-free allowance. If you only have BR as your code (single source of income), you're losing the personal allowance entirely — about £2,514 in lost tax savings per year. If BR is your second income code, this is correct because your first job is already using the allowance.
When to check this code
Check whenever you start a second job, start drawing a pension while still working, or notice 20% tax being deducted from a single source where you'd expect personal allowance. BR is correct in some scenarios (second job) but wrong in others (sole income).
What to do if it's wrong
If BR is your only income and it looks wrong: ensure HMRC has your P45 from previous employment, check your HMRC personal tax account, and contact HMRC if no other income explains why BR is applied. Tax overpaid under wrong BR allocation is reclaimable for up to 4 previous tax years.
Example calculation
On £20,000 from a single BR-coded job: 20% × £20,000 = £4,000 income tax. Compare to 1257L on the same £20,000: 20% × (£20,000 − £12,570) = £1,486 tax. The BR code costs you £2,514 in extra tax that year if you don't have other income claiming the personal allowance.
Recruiter pro tip
If you have two jobs and BR is on the lower-paying one, that's usually correct (1257L claims your allowance on the better-paying job). If you have two jobs and BR is on the higher-paying one, ask HMRC to switch — you might save £200-£500 a year by reallocating the allowance to the larger income.
Related tax codes
1257L
1257L is the standard UK tax code for 2026/27. It means you're entitled to the full £12,570 personal allowance…
D0 — Higher Rate
D0 means all income from this source is taxed at the higher rate (40%) with no personal allowance applied. D0 …
0T — No Personal Allowance
0T means you have no personal allowance applied to this income — all earnings are taxed at the appropriate rat…