UK tax codes guide
BR tax code explained: what it means and what it does to your pay
If your payslip, pension statement or tax code letter says BR, it means basic rate: your employer or pension provider takes 20% income tax from every pound they pay you, with no tax-free allowance first. That is the right code for a second job or pension and the wrong one for an only job.
Below: what BR looks like on a payslip (BR, BR CUMUL, BR NONCUM, BRX, SBR, CBR), why you have it, four worked examples with real figures, BR set against every other code, how a payroll turns a code into tax, the allowance since 1990, and the steps GOV.UK gives for putting a wrong code right.
Reviewed 10 Oct 2026 · by GoldC Team · How we calculate thisUses UK rules (HMRC rates) and pounds.
The short answer
- BR = basic rate. 20% on every pound of that job or pension, from the first pound. There is no number in the code because there is no allowance.
- On a £1,000 payday, BR takes £200.00. The standard code, 1257L, takes £0.00, because it gives £1,048.26 of tax-free pay a month.
- Right on a second job, where your allowance is already used. Wrong on an only job: on £30,000 a year it takes about £2,516 too much over twelve paydays.
- It is not emergency tax, it does not change National Insurance, and GOV.UK says tax taken in error comes back through your pay or by a letter after the tax year.
2026/27 rates, England, Wales and Northern Ireland. Scotland's equivalent is SBR, also 20%.
What does BR mean on a tax code?
BR stands for basic rate. It tells your employer or pension provider to take income tax at 20% on every pound they pay you, starting with the first, and to ignore your Personal Allowance for that payment. There is no number in the code because there is no allowance to count. GOV.UK puts it as "all income from this job or pension is taxed at the basic rate", and adds that it is usually used if you have more than one job or pension.
The difference shows on the very first payday. On £1,000 of pay, a BR code takes £200.00. The standard code, 1257L, takes £0.00, because it gives you £1,048.26 of tax-free pay every month before any tax is counted. So BR is not "a bit more tax". It is a different way of working out the tax, and whether it is right depends on whether the allowance is already being used somewhere else.
Why am I on a BR tax code?
Almost always because the job or pension in question is not the one that carries your Personal Allowance. You have one allowance a year, and HMRC normally gives it to your main job or pension. The others get BR, or D0 or D1, which apply the higher and additional rates instead. GOV.UK lists "starting income from an additional job or pension" as one of the reasons HMRC changes a code.
The commonest route is the form a new employee fills in. HMRC's PAYE manual lists the three statements on the starter checklist and the code an employer uses for each:
- A, "This is my first job since last 6 April": an emergency code, worked out on a cumulative basis.
- B, "This is now my only job": an emergency code, with each payday taxed on its own (week 1 or month 1).
- C, "I have another job or receive a state or occupational pension": BR.
If nothing is signed, the manual says the employer uses 0T on a week 1 or month 1 basis. That is worth knowing: a new job does not start on BR by default. A new starter without a P45 usually starts on an emergency code or on 0T, and BR comes with statement C or when HMRC itself gives you a second code.
It can also arrive without you doing anything. GOV.UK says HMRC changes your code when, for example, you start a second job or pension, your employer reports company benefits, or you have been on the wrong code and owe tax. The employer or pension provider then uses whatever code HMRC sends.
Is a BR tax code emergency tax?
No. GOV.UK says an emergency tax code is one ending in W1 (weekly pay), M1 (monthly pay) or X (pay dates that vary), or showing as NONCUM on some payslips. Those endings change how the tax is worked out: only on that week's or month's pay, as if you earned the same amount every period, instead of on your pay so far this tax year. BR is a code in its own right. It can be used on the normal basis, and it can also carry one of those endings, which is why you may see "BR M1" or "BRX".
With a flat rate the difference between the two bases is small, because 20% of this month's pay is 20% of this month's pay however it is added up. The two bases only drift apart on a code with an allowance, like 1257L, where one low month or one high month changes the answer. The section on payslip spellings below goes through each form.
Does a BR tax code change National Insurance?
No. National Insurance is a separate charge with its own thresholds (in 2026/27, 8% between £1,048 and £4,189 a month and 2% above, for the standard category letter), and it is worked out on each payday's pay, whatever the tax code says. A BR code changes your income tax only. The same goes for a student loan: it is worked out from your pay and plan, not your code.
If you want to see all three side by side for a particular pay, the bonus tax calculator reads BR, D0, D1, K, 0T, NT and the emergency endings, and shows tax, National Insurance and student loan payday by payday.
BR tax code examples with real figures
Four cases, all for 2026/27 in England, Wales or Northern Ireland, paid monthly. "Payroll" is what the employer takes across the twelve paydays. "The year's real tax" is what the same income costs once the allowance is applied once, to the whole of it, using the bands (20% up to £37,700 of income after the allowance, 40% above). Where the two match, the code did its job.
Example 1: BR on a second job, where it is right
A main job pays £35,000 a year on 1257L and a weekend job pays £8,000 a year on BR. Together that is £43,000, still below £50,270, the point where the 40% band starts (£12,570 allowance plus £37,700).
| Job | Code | Pay a year | Tax taken |
|---|---|---|---|
| Main job | 1257L | £35,000 | £4,484.00 |
| Weekend job | BR | £8,000 | £1,600.00 |
| Payroll in total | £43,000 | £6,084.00 | |
| The year's real tax | £43,000 | £6,086.00 |
The two agree to within £2.00. That small gap is payroll rounding: a 1257L code gives about £12,579 of free pay across a year, a little over the £12,570 allowance (more on that below). So here BR is simply the correct code. The allowance went to the main job, the second job pays the basic rate, and nothing is owed or refunded.
Example 2: BR on the only job, where it is wrong
One job, £30,000 a year, paid £2,500 a month. On 1257L the first payday has £290.20 of tax. On BR it has £500.00, which is £209.80 more on the first payday alone. Over twelve paydays:
- BR takes £6,000.00 of tax.
- 1257L takes £3,484.00; the year's real tax on £30,000 is £3,486.00.
- The difference is about £2,516. The allowance taxed at 20% would be £2,514; payroll rounding adds the rest.
GOV.UK describes what happens next: once HMRC has your income details for the year it works out the difference, and your employer or pension provider refunds it through your pay when the new code takes effect. If the details are still missing, you cannot get the refund until they arrive, and after the tax year HMRC checks your tax and writes to explain how to claim what is owed. The "If your code looks wrong" section lists the steps GOV.UK gives.
Example 3: a second job that reaches the higher rate
Now the main job pays £40,000 and the second job £20,000. Together that is £60,000, which is £9,730 into the 40% band. The year's real tax is £11,432.00. A single code cannot be exactly right here:
| Second job's code | Tax on the second job | Payroll in total | Against the real tax |
|---|---|---|---|
| BR | £4,000.00 | £9,484.00 | £1,948.00 too little |
| D0 | £8,000.00 | £13,484.00 | £2,052.00 too much |
BR takes £4,000 on the second job, but part of that pay really falls in the 40% band, so too little is taken across the year. D0 takes £8,000, which is too much, because only part of the second job is taxed at 40%. Neither is wrong as a starting point. GOV.UK says that when HMRC finds you have underpaid it estimates what you owe when it updates your code and may collect it over one or more tax years, and that it checks again after the tax year ends. Overpaid tax comes back by the routes in the previous example.
Example 4: a pension on BR
Pensions work the same way. A pension provider told to use BR takes 20% of each payment, which is the right amount when your allowance is already used by a salary or by another pension. GOV.UK lists receiving the State Pension among the reasons for a K code, so a private or workplace pension that starts next to one can come with a code you did not expect. The arithmetic is the same as Example 1: a payment of £1,000 loses £200.00.
How BR looks on a payslip: BR, BR CUMUL, BR NONCUM, BRX and the rest
The code on a payslip is rarely just "BR". Payroll software adds the basis, some systems squash the ending on, and pension providers print their own layout. These are the forms people search for, and what each one says about how your tax is being worked out.
| You see | What it means |
|---|---|
| BR | Basic rate, on the normal basis: the tax is worked out on your pay so far this tax year. A flat rate gives nearly the same answer on either basis. |
| BR CUMUL, BR C | BR with the basis spelled out as cumulative, which is the normal basis; payslips often shorten it to C. GOV.UK does not use the word, but payroll software and pension statements do. A C in front of the code (CBR) is a different thing: Welsh rates. |
| BR NONCUM | BR on an emergency basis. GOV.UK says NONCUM can appear on a payslip for an emergency code: tax is worked out on that period's pay alone. |
| BR W1, BR M1, BRX | BR with an emergency ending. W1 is for weekly pay, M1 for monthly pay and X for pay dates that vary (GOV.UK). BRX is BR followed by X. |
| SBR | Scottish basic rate. Scotland's own code for the same job, taxed at Scotland's basic rate. |
| CBR | Welsh basic rate. The rate is the same as in England and Northern Ireland. |
| 0T, not BR | A different code. 0T gives no allowance but uses the bands (20% up to the basic-rate limit, then 40%), where BR is a flat 20% on everything. If you were a new starter with no details, 0T is more likely than BR. |
| 0BR, BR1, BR0 | Not codes. BR never carries a number. These usually come from a number or a letter next to the code on the payslip or from a pension provider's layout. The HMRC app or your tax code notice shows the code exactly as HMRC holds it. |
The practical point is how little the basis matters on BR. On a code with an allowance, an emergency ending can take far too much or too little tax for months. On BR it changes almost nothing, because there is no allowance to build up. What matters on a BR code is the one question that comes next: is this the job or pension that carries your allowance?
Every tax code in one table
A code is a number and a letter, sometimes with a prefix or an ending. The number is your tax-free pay for the year divided by ten; the letter says which allowance applies. GOV.UK's list, in plain order, with the rate each one applies in 2026/27:
| Code | What it means | Rate |
|---|---|---|
| 1257L | The standard Personal Allowance applies (L). GOV.UK: the code currently used for most people who have one job or pension. | Bands |
| M / N | Marriage Allowance: M means you received 10% of your partner's Personal Allowance; N means you transferred 10% of yours to your partner. | Bands |
| T | Your code includes other calculations to work out your Personal Allowance. | Bands |
| 0T | Your Personal Allowance has been used up, or you are a new starter and your employer does not have the details needed to give you a code. | Bands, from the first pound |
| BR | All income from this job or pension is taxed at the basic rate. GOV.UK: usually used if you have more than one job or pension. | 20% (Scotland 20%) |
| D0 | All income from this job or pension is taxed at the higher rate (in Scotland, the intermediate rate). Usually used with more than one job or pension. | 40% (Scotland 21%) |
| D1 | All income is taxed at the additional rate (in Scotland, the higher rate). Usually used with more than one job or pension. | 45% (Scotland 42%) |
| SD2 | Scotland only: all income from this job or pension is taxed at the advanced rate. Usually used with more than one job or pension. | Scotland: 45% |
| SD3 | Scotland only: all income from this job or pension is taxed at the top rate. Usually used with more than one job or pension. | Scotland: 48% |
| NT | No tax is paid on this income. | None |
| K | You have untaxed income or deductions worth more than your Personal Allowance, so the code adds to your pay instead of taking away from it. | Bands, on pay plus the K amount |
| S, C prefix | S: taxed using Scottish rates (SBR, SD0 to SD3 and S0T are the Scottish versions). C: taxed using Welsh rates (CBR, CD0, CD1 and C0T). | Scottish or Welsh bands |
| W1, M1, X, NONCUM | Emergency tax code endings: tax is worked out on the pay for that week or month alone (W1 weekly, M1 monthly, X when pay dates vary). NONCUM is how some payslips show it. | Same bands, each payday on its own |
The bands in 2026/27: England, Wales and Northern Ireland 20%, 40%, 45%; Scotland 19%, 20%, 21%, 42%, 45%, 48%. Wales uses the same rates as England, so CBR, CD0 and CD1 work like BR, D0 and D1. Source: GOV.UK, What your tax code means, read 10 October 2026.
BR against every other code: the same pay, side by side
One person on £30,000 a year, paid £2,500 a month, in 2026/27, with the same job under eight different codes. Nothing else changes, so every difference below comes from the code alone.
| Code | What it does | First payday | Twelve paydays |
|---|---|---|---|
| 1257L | The standard code: the first payday has the allowance's monthly share taken off before tax. | £290.20 | £3,484.00 |
| BR | Flat basic rate on every pound, no allowance. | £500.00 | £6,000.00 |
| D0 | Flat higher rate on every pound, no allowance. | £1,000.00 | £12,000.00 |
| D1 | Flat additional rate on every pound, no allowance. | £1,125.00 | £13,500.00 |
| 0T | No allowance, but the bands: the first slice is still taxed at the basic rate. | £500.00 | £6,000.00 |
| K100 | Adds £1,009 a year to pay before tax instead of taking an allowance off. | £516.80 | £6,201.80 |
| K500 | Adds £5,009 a year to pay before tax. | £583.40 | £7,001.80 |
| NT | No tax taken at all. | £0.00 | £0.00 |
| 1257L M1 | Standard code on an emergency basis: each payday taxed on its own. | £290.20 | £3,482.40 |
Three things stand out. BR and 0T give the same year here (£6,000.00), because on £30,000 nothing reaches the 40% band; they only part company on pay high enough to reach it. D0 and D1 take far more than the standard code: £12,000 and £13,500 a year against £3,484, because they tax every pound at 40% or 45%. And a K code takes more than BR: K100 is £6,201.80, because it adds to the pay the tax is worked out on. The emergency version of 1257L ends the year £1.60 away from the normal version on this steady pay, which is why the trouble with emergency codes shows up when pay moves about, not when it is level.
HMRC publishes its own K example, and the code reproduces it: £895 of monthly pay on K585 has £276.60 of tax on the first payday. The same page in GOV.UK adds that employers and pension providers cannot take more than half of your pre-tax wages or pension when using a K code.
The Scottish versions
The same £30,000 job, with a Scottish prefix on the code and Scottish rates:
| Code | What it does | First payday | Twelve paydays |
|---|---|---|---|
| S1257L | The standard code with Scottish rates. | £287.27 | £3,448.97 |
| SBR | Scottish basic rate on every pound. | £500.00 | £6,000.00 |
| SD0 | Scottish intermediate rate on every pound. | £525.00 | £6,300.00 |
| SD1 | Scottish higher rate on every pound. | £1,050.00 | £12,600.00 |
| SD2 | Scottish advanced rate on every pound. | £1,125.00 | £13,500.00 |
| SD3 | Scottish top rate on every pound. | £1,200.00 | £14,400.00 |
SBR takes the same 20% as BR in the rest of the UK, so a Scottish second job on SBR is taxed the same as a BR one. The codes above it step up the Scottish bands one at a time. Wales uses the same rates as England, so CBR, CD0 and CD1 give the same figures as BR, D0 and D1.
How a payroll turns a tax code into tax
There are three steps, and BR skips the middle one. That is the whole difference.
- The number becomes tax-free pay. HMRC's rule is that a code's number times ten, plus nine, is the year's tax-free amount; a payroll divides it by the number of paydays. For 1257 that is not simply 1,257 x 10 / 12. HMRC's specification splits any code over 500 into whole 500s and a remainder: 2 lots of 500 are worth £416.67 a month each, the remaining 257 is worth £214.92, and each part is rounded up to the penny. Together: £1,048.26 of tax-free pay a month, £12,579 over the year.
- Pay is added up, the free pay is taken off, the rest is cut to whole pounds. This is the "cumulative" method: each payday uses your total pay so far and the free pay so far, so a quiet month followed by a busy one evens out.
- The bands are applied, and last payday's tax is taken off. What is left is tax to date, less the tax already taken.
The first payday, on £2,500, with and without an allowance
- On 1257L: pay £2,500.00 less free pay £1,048.26 is £1,451.74, cut to £1,451. At 20% that is £290.20.
- On BR: no free pay is taken off. 20% of £2,500 is £500.00.
The gap, £209.80 on that one payday, is the allowance's monthly share, taxed. That is exactly what you give up if the job that carries your allowance is on BR.
Two safeguards sit on top. A payroll never takes more than half of a payday's pay as tax (HMRC's PAYE specification; GOV.UK repeats it for K codes), and the rounding is HMRC's: the free pay is rounded up and the taxable pay is rounded down, always in your favour by a few pence. Those pence are why a payroll's year can be a pound or two away from the year's exact tax, as in Example 1 above.
Tax codes through the years: the allowance since 1990
Tax codes are older than almost anyone who has one. PAYE began on 6 April 1944, replacing a system where income tax was settled once or twice a year. HMRC's own history says that by the end of January 1944 about 15 million people earning more than £100 a year had been sent a notice with their tax code number, and that a leaver was given a P45 recording their code, pay to date and tax paid to date to hand to the next employer. The idea that your code says how much of your pay is tax-free, and that your employer adds your pay up through the year, has not changed since. What has changed is the number.
Real Time Information is the modern layer on top. HMRC's research report dates it to a phased start from April 2012 and a launch for all employers in April 2013: employers now tell HMRC about each payment on or before payday, which is why a code can change within weeks of a new job rather than at the end of a year.
The standard Personal Allowance was £3,005 in 1990-91, £6,475 in 2010-11 and is £12,570 now, up 94% since 2010-11. It has not moved since 2021-22. HMRC's published decision is to maintain the Personal Allowance and the basic-rate limit at today's levels until 5 April 2031 (Maintaining Income Tax and equivalent National Insurance contributions thresholds until 5 April 2031), so 1257L has a long run ahead of it.
The standard code, year by year, and what it did to the same salary
The code is GOV.UK's rule applied to each year's allowance: drop the last digit and add L. Free pay a month is what a payroll gave under that code, by HMRC's rounding. The last two columns are the income tax on a single salary of £30,000 and of £50,000 under that year's allowance and bands, for someone under 65 with no other income, in England, Wales or Northern Ireland. They are in each year's own pounds: they do not allow for rising prices or pay.
| Tax year | Allowance | Standard code | Free pay a month | Tax on £30,000 | Tax on £50,000 |
|---|---|---|---|---|---|
| 2008-09 | £6,035 | 603L | £503 | £4,793 | £10,626 |
| 2009-10 | £6,475 | 647L | £540 | £4,705 | £9,930 |
| 2010-11 | £6,475 | 647L | £540 | £4,705 | £9,930 |
| 2011-12 | £7,475 | 747L | £623 | £4,505 | £10,010 |
| 2012-13 | £8,105 | 810L | £676 | £4,379 | £9,884 |
| 2013-14 | £9,440 | 944L | £787 | £4,112 | £9,822 |
| 2014-15 | £10,000 | 1000L | £834 | £4,000 | £9,627 |
| 2015-16 | £10,600 | 1060L | £884 | £3,880 | £9,403 |
| 2016-17 | £11,000 | 1100L | £917 | £3,800 | £9,200 |
| 2017-18 | £11,500 | 1150L | £959 | £3,700 | £8,700 |
| 2018-19 | £11,850 | 1185L | £988 | £3,630 | £8,360 |
| 2019-20 | £12,500 | 1250L | £1,042 | £3,500 | £7,500 |
| 2020-21 | £12,500 | 1250L | £1,042 | £3,500 | £7,500 |
| 2021-22 | £12,570 | 1257L | £1,048 | £3,486 | £7,486 |
| 2022-23 | £12,570 | 1257L | £1,048 | £3,486 | £7,486 |
| 2023-24 | £12,570 | 1257L | £1,048 | £3,486 | £7,486 |
| 2024-25 | £12,570 | 1257L | £1,048 | £3,486 | £7,486 |
| 2025-26 | £12,570 | 1257L | £1,048 | £3,486 | £7,486 |
| 2026-27 | £12,570 | 1257L | £1,048 | £3,486 | £7,486 |
Read across 2010-11 and 2026-27. The standard code went from 647L to 1257L, free pay a month from £540 to £1,048, and the tax on £30,000 from £4,705 to £3,486. On £50,000 it went from £9,930 to £7,486. Both fell because the tax-free slice grew, so less of the salary was taxed. On £50,000 there is a second reason: in 2010-11, £6,125 of it was taxed at 40%, and in 2026-27 none is, because the taxable £37,430 now fits inside the £37,700 basic-rate band. These compare the rules, not what anyone could buy with the money. The table starts at 2008-09 because the basic rate was 22% before it (and higher before 2000), so earlier years are not like for like.
The bonus tax calculator and the other UK calculators use only the current year's file; the earlier years are here to explain the number on the payslip. The source for every row is HMRC's Table A.1 and Table A.2.
If your BR tax code looks wrong: what GOV.UK says happens
A BR code is wrong when the job or pension it is on is the one that carries your Personal Allowance: an only job on BR is the clearest case. GOV.UK says the usual cause of a wrong code is that HMRC has incorrect or missing information, usually from an employer or pension provider. It describes these steps.
- Check what HMRC holds. You can see your current code in your online account or the HMRC app, on your payslip, or on a Tax Code Notice letter. GOV.UK adds that you can sign up for paperless notifications, so HMRC emails you when a code changes.
- Update the details. GOV.UK calls the quickest fix the Check your Income Tax online service: check your employment, pension, estimated taxable income, company benefit and expenses details, and update anything wrong or missing.
- The P45. If you left a job without one, GOV.UK says to ask your former employer for it, as it helps update your details. A new employer without your P45 may start you on an emergency code or on 0T.
- If you cannot use the online service, contact HMRC. If you have only just started a new job, GOV.UK says to allow 35 days for HMRC to receive your new income details first.
- The new code. GOV.UK says HMRC will tell you and your employer the new code within 15 working days. Monthly paid people see it on their next or following payslip; weekly paid people on their third payslip. If it is not there, GOV.UK says to speak to your employer.
Getting the extra tax back
GOV.UK sets out two routes. If HMRC has your income details for the year, it works out the difference and your employer or pension provider refunds it through your pay, usually when the new code takes effect. If the details are missing, you cannot get the refund until HMRC receives them; after the tax year HMRC checks your tax, writes to you if the amount is wrong, and explains how to claim. For refunds outside a job or pension GOV.UK has a separate claim service. The guide to overpaid and underpaid tax says HMRC sends a tax calculation letter (a P800) or a Simple Assessment between June and March.
If tax was underpaid because you were on the wrong code, GOV.UK says HMRC estimates what you owe when it updates your code and may collect it over one or more tax years if possible, and that you may stay on an emergency code until the correct tax for the year has been paid.
What BR does not mean
- It does not mean you have done something wrong. It is a standard code HMRC and employers use every day.
- It does not mean the rate on your income is permanently 20%. The code only decides how tax is taken during the year; your real tax is settled against the whole of your income.
- It does not set your National Insurance or your student loan.
This page describes how the codes work. It is not tax advice and cannot see your HMRC record; the code HMRC holds for you, and the reason for it, are in your online account or the HMRC app.
Quick answers
What is a BR tax code?
BR is the basic rate code. Every pound from that job or pension is taxed at 20%, with no Personal Allowance taken off first. GOV.UK says it is usually used if you have more than one job or pension.
Is a BR tax code bad?
It is the right code on a second job or pension and the wrong one on an only job. On £30,000 a year, BR takes £6,000 of tax over twelve months where 1257L takes £3,484.
Is a BR tax code emergency tax?
No. GOV.UK describes emergency codes as those ending in W1, M1 or X (shown as NONCUM on some payslips). BR is a code in its own right, though it can carry one of those endings.
Why am I on a BR tax code?
Because HMRC or your employer treats this job or pension as one that does not carry your Personal Allowance. On a new starter checklist, statement C (another job or a pension) gives BR, according to HMRC's PAYE manual. HMRC can also send BR when you start extra income.
Why do I have a BR tax code but only one job?
Usually because HMRC or your employer holds a second source of income for you, such as a pension, or the employer was told on the starter checklist that you have another job or pension. If neither is true, GOV.UK describes updating your details online, or contacting HMRC.
What percentage is a BR tax code?
20% in 2026/27, on every pound. In Scotland the matching code is SBR, the Scottish basic rate, which is also 20%; in Wales it is CBR, at the same rate as England. D0 is 40% and D1 is 45%.
Is BR tax code cumulative?
It can be either. The normal basis adds up your pay through the tax year; an emergency ending (W1, M1, X or NONCUM) taxes each payday on its own. On a flat rate such as BR the two give nearly the same tax for the same pay, apart from pence of rounding.
What does BRX or BR M1 mean?
BR with an emergency ending: M1 for monthly pay, W1 for weekly pay, X for pay dates that vary. The tax is worked out on that period's pay alone.
Will my BR tax code change by itself?
HMRC changes a code when your income or circumstances change, for example a new job, a second job or pension, benefits reported by your employer, or tax owed from an earlier year (GOV.UK's list). The employer or pension provider uses the code HMRC sends.
How long will I be on a BR tax code?
For as long as HMRC or your employer holds that job or pension as the one without your allowance. GOV.UK says that after a change HMRC tells you and your employer the new code within 15 working days.
Does a BR tax code affect National Insurance?
No. National Insurance is worked out on its own thresholds and your category letter, payday by payday, whatever your tax code is.
Is BR the same as 1257L?
No. 1257L gives £1,048.26 of tax-free pay each month before the bands apply. BR gives none. On a £1,000 payday, 1257L takes £0.00 and BR takes £200.00.
What is the difference between BR and 0T?
Both give no allowance. BR taxes everything at 20%; 0T uses the bands, so the first slice is at 20% and the rest at 40% and 45%. On £30,000 a year they give the same tax (£6,000).
What is the difference between BR and D0?
D0 taxes everything at 40% instead of 20%. GOV.UK says both are usually used when you have more than one job or pension.
Try your own code
The bonus tax calculator reads BR, D0, D1, K, 0T, NT and the emergency endings. Type your code and your pay and it shows the tax, National Insurance and student loan payday by payday. The pro rata salary calculator and the pension salary sacrifice calculator show what part-time pay or a pension contribution does to the same figures.
Sources, method and limits
Every page below was read on 10 October 2026. A sentence that no official page supports is not on this page.
- GOV.UK, What your tax code means: what each letter and code means, the example of how the number is worked out.
- GOV.UK, Tax codes (the whole guide): why a code changes, how to check and update it, the 35 days and 15 working days, emergency codes, refunds, underpayments and the half-of-pay limit for K codes.
- GOV.UK, If you have a K in your tax code: what a K code is and when it is used.
- GOV.UK, Tax overpayments and underpayments: tax calculation letters (P800) and Simple Assessment letters, and the months they are sent.
- HMRC, PAYE Manual PAYE61030 (starter statements): the three starter checklist statements and the code each one gives (statement C: BR; nothing signed: 0T).
- HMRC, Specification for PAYE tax table routines (version 24, February 2026): how free pay, taxable pay and tax to date are worked out and rounded, including codes over 500.
- HMRC, Software developers payroll test data 2026 to 2027: the examples our PAYE code is checked against, including the K585 example.
- HMRC, Rates and thresholds for employers 2026 to 2027: National Insurance thresholds and rates.
- HMRC, Income Tax personal allowances and reliefs (Table A.1) and Rates of Income Tax (Table A.2): the allowance and the bands for every tax year in the history section (tables updated 15 July 2026).
- HMRC, Walking the halls of history with History Alice: PAYE at 80 (28 December 2024): PAYE's start on 6 April 1944, the 15 million code notices and the P45.
- HMRC research report 369, PAYE Real Time Information: Real Time Information's phased start in 2012 and launch for all employers in April 2013.
- HMRC, Maintaining Income Tax and equivalent National Insurance contributions thresholds until 5 April 2031: the Personal Allowance and basic-rate limit staying where they are.
How this page was made
It is written by GoldC Team, from the pages above. The pound figures are not typed in: they come from the same code as our bonus tax calculator, which reproduces all 168 payday examples in HMRC's own 2026/27 payroll test data (tax codes including K, BR and D, in England, Scotland and Wales). The history tables are HMRC's, loaded from a saved copy that a test compares against. No section was generated and left unchecked.
Limits
Figures are estimates for 2026/27, England, Wales and Northern Ireland unless it says Scotland, for a person under State Pension age with the standard National Insurance category. A payroll can differ by pence. The second-job examples assume one Personal Allowance and no other income. This page describes how tax codes work; it is not tax advice and cannot see the code HMRC holds for you. For that, see your online account or the HMRC app. Reviewed 10 October 2026.