Understanding your tax code is essential to make sure you’re paying the right amount of tax. One code that often raises questions is the BR tax code, short for Basic Rate. If you’ve noticed this code on your payslip, you might be paying too much tax without realising it.
This guide explains what the BR tax code means, why you might have it, and, most importantly, how to change it.
What Does the BR Tax Code Mean?
The BR tax code stands for Basic Rate, which means all your income from that particular job is taxed at 20%, with no Personal Allowance applied.
In simple terms, HMRC assumes you’ve already used your tax-free Personal Allowance (£12,570 for 2025/26) on another job or source of income.
So, if your only job has the BR code, you’re likely paying more tax than necessary.
Why You Might Have a BR Tax Code
There are several common reasons HMRC might assign you the BR code:
- You started a new job, and your new employer didn’t receive your P45.
- You have more than one job, and your main allowance is used on your first job.
- You receive a pension and a salary at the same time.
- Your employer didn’t get enough details from HMRC when setting up your payroll.
- A temporary or emergency code was issued until HMRC updates your record.
In most cases, the BR code is temporary and can be corrected once your details are updated.
How To Check If You’re on a BR Tax Code
You can check your tax code in several ways:
- Your payslip: It’s usually printed next to your name or National Insurance number.
- Your P60 or P45: Annual or leaving statement from your employer.
- HMRC’s online services: Log in to your Personal Tax Account on GOV.UK.
If you see “BR”, “BRX”, or “BRM1” and you only have one job, that’s a sign you may be overpaying tax.
How To Change or Correct a BR Tax Code
If you think your BR code is wrong, here’s what to do:
1. Contact HMRC Directly
The fastest way to fix your tax code is to speak to HMRC. You can:
- Call HMRC’s Income Tax helpline at 0300 200 3300.
- Or use the online form: Tell HMRC about a new job or change in income.
You’ll need to provide:
- Your National Insurance number.
- Employer name and PAYE reference (found on your payslip).
- Details about your income or other jobs.
Once HMRC updates your record, they’ll issue a new tax code notice to both you and your employer.
2. Give Your New Employer Your P45
If you’ve recently changed jobs, make sure you’ve given your new employer your P45 from your previous employer. This tells them your correct tax history.
If you don’t have a P45, your employer can ask you to complete a Starter Checklist (previously P46), which helps them apply the right code.
3. Check Your Payslip After the Change
Once HMRC updates your tax code, your employer should use it automatically. You may even receive a tax refund in your next pay if you’ve overpaid under the BR code.
If not, HMRC will issue the refund directly at the end of the tax year.
How Long Does It Take To Fix a BR Tax Code?
In most cases, HMRC updates your tax code within 2–4 weeks of receiving the correct information. However, it can take longer if you have multiple income sources or complex tax affairs.
You can track your tax code status through your Personal Tax Account online.
How To Avoid BR Tax Code in the Future
- Always submit your P45 when starting a new job.
- Update HMRC immediately if you:
- Start or stop a second job.
- Begin receiving a pension.
- Change employers mid-year.
- Check your payslip monthly to ensure the correct code is being used.
Final Thoughts
The BR tax code isn’t always wrong, but if it applies to your main job, you’re likely overpaying tax. The good news is that it’s easy to fix by updating your details with HMRC.
Keeping your payroll information accurate ensures you pay only what you owe — not a penny more.
For many employees and businesses, professional Payroll Services in London can make this process seamless, ensuring tax codes, PAYE records, and HMRC updates are always accurate and compliant.
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