How BR works in 2025/26
The BR code is HMRC's way of taxing a "secondary" income source where you've already used your Personal Allowance elsewhere. It applies a flat 20% to every pound earned at that source, with no allowance. The most common use cases:
- Second job — main job uses 1257L (full PA), second job uses BR.
- Second pension — main pension uses your normal code, second uses BR.
- Pension drawdown alongside salary — if main income uses the PA, the pension provider uses BR.
- Bonus job on top of regular employment.
BR is fine if: Your total income across all sources stays within the basic rate band (under £50,270). The 20% on the second source matches your marginal rate.
BR fails if: Your total income is above £50,270. The second source's BR taxes only at 20%, but you actually owe 40% on the higher-rate portion. HMRC catches this at year-end via P800 or self-assessment, demanding the underpayment.
BR vs D0 vs 0T — when to use each
HMRC uses different "all-of-it" tax codes depending on the marginal rate expected:
- BR — all at 20%. Used when total income across all sources is in basic rate.
- D0 — all at 40%. Used when basic rate band is full and second source is in higher rate.
- D1 — all at 45%. Used when both basic and higher rate bands are full.
- 0T — no allowance, but progressive bands. Default emergency code if HMRC has insufficient information.
HMRC reviews codes annually and switches BR → D0 → D1 as appropriate based on your prior year's reconciliation. If your second job started after the main job filled the basic rate band, you should request D0 directly to avoid the year-end balance.
Three worked examples (UK 2025/26)
Example 1: £40k main + £6k second job — BR fine
Maya earns £40,000 from her main job and £6,000 from a Saturday job.
Calculation: Main job 1257L: PA £12,570, taxable £27,430 × 20% = £5,486 tax. Second job BR: £6,000 × 20% = £1,200 tax. Total tax £6,686. Compare correct calculation: total income £46,000, taxable £33,430, all in basic rate at 20% = £6,686. Match — BR works correctly.
Example 2: £48k main + £8k second — BR underpays
Diego earns £48,000 main + £8,000 second.
BR calculation: Main £35,430 × 20% = £7,086. Second £8,000 × 20% = £1,600. Total £8,686. Correct calculation: Total £56,000, PA £12,570, taxable £43,430. Basic £37,700 × 20% = £7,540. Higher £5,730 × 40% = £2,292. Total £9,832. Underpayment £1,146 — Diego owes this at year-end. Should switch second job to D0.
Example 3: Pension + employment, partial BR mix
Helen receives £25,000 from a private pension (uses 1257L) and works part-time earning £6,000 (BR code).
Calculation: Pension £25,000 − £12,570 = £12,430 × 20% = £2,486. Employment £6,000 × 20% = £1,200. Total £3,686. Correct calculation £31,000 − £12,570 = £18,430 × 20% = £3,686. Match — BR appropriate.
Common mistakes to avoid
- Asking for BR on a second job when total income exceeds £50,270 — you'll underpay and face a year-end bill.
- Confusing BR with 0T — 0T uses progressive bands; BR is flat 20%.
- Forgetting that BR doesn't account for the £100,000 PA taper — high earners with second jobs need careful planning.
- Treating BR as 'penalty' tax — it's just standard 20%, no penalty.
- Failing to inform HMRC when a second job stops — the BR code may be applied to a new job by mistake.
- Ignoring NI on second jobs — 8% applies above £12,570 across all employments.
When to use this calculator
Use this calculator any time you start a second job, second pension, or supplementary income source. Compare BR (20% flat) against your total expected income. If total exceeds £50,270, request D0 directly via HMRC. Re-run when main-job salary changes — a promotion can flip BR's accuracy from "fine" to "underpayment".
Regional differences (Scotland, Wales, Northern Ireland)
Tax codes are issued by HMRC and apply to UK-wide employees. Scotland uses tax codes prefixed "S" (e.g. S1257L) to indicate Scottish income tax bands (Starter 19%, Basic 20%, Intermediate 21%, Higher 42%, Advanced 45%, Top 48%) — the numerical allowance portion is the same as rUK. Wales uses "C" (e.g. C1257L) for Welsh resident, but Welsh rates currently match UK. Northern Ireland uses standard UK codes throughout. The numerical part of the code (e.g. 1257 for £12,570 PA) is identical across the UK; only the prefix changes the band structure.