UK Tax Codes · 2026/27
SBR Tax Code Meaning — Scotland Basic Rate (UK 2026/27)
Who gets the SBR (Scotland Basic Rate) tax code?
Scottish taxpayers with a second job or pension where the first income has already used the personal allowance. Same logic as BR for rUK — the second source uses SBR to apply 20% from £1 because the allowance is already claimed elsewhere.
How SBR (Scotland Basic Rate) affects your pay
Every pound of SBR income is taxed at 20% from the first pound. Same effective rate as the Scottish basic-rate band but applied without allowance. Note: this doesn't capture Scotland's starter rate (19%) which would normally apply on income £12,571-£15,397 — for second-job earners this means they pay 20% rather than 19% on the lowest band of their second income.
When to check this code
Check SBR if you start a second job or pension while living in Scotland. Confirm your main income is using the personal allowance correctly via your tax account.
What to do if it's wrong
If SBR is on your only income and you live in Scotland, this is wrong — contact HMRC immediately. If SBR is on a small second income while your main job is also small, you might be over-paying because Scotland's starter rate (19%) isn't being applied to the second income's lowest portion. Worth checking, though savings are typically small (£20-50/year).
Example calculation
On £15,000 from a SBR-coded second job (Scotland): 20% × £15,000 = £3,000 income tax. Compare to S1257L treatment of the same £15,000 if it were the only income: £12,570 tax-free, £15,397-£12,570 (£2,827) at 19% Scottish starter rate = £537. The SBR costs £2,463 vs sole income — correct only if the personal allowance is genuinely used elsewhere.
Recruiter pro tip
Scottish second-job earners should occasionally calculate whether reallocating the allowance saves tax — the starter rate (19%) means you might benefit from claiming the allowance on the second job if your first job is large enough to make basic/intermediate the marginal band. Worth a 5-minute calculation if you have two stable Scottish incomes.
Related tax codes
S1257L — Scotland
S1257L is the Scottish equivalent of 1257L — the standard tax code for Scottish taxpayers in 2026/27. The S pr…
BR — Basic Rate
BR stands for 'Basic Rate' — meaning all your income from this job is taxed at 20%, with no personal allowance…
C1257L — Wales
C1257L is the Welsh equivalent of 1257L — the standard tax code for Welsh taxpayers in 2026/27. The C prefix i…