How To Change My BR Tax Code? A Guide For Employees

In the UK, employees are assigned tax codes to determine how much Income Tax should be deducted from their wages or pensions. Generally, each tax code is a combination of letters and numbers, representing your personal tax allowances and any specific conditions that may affect your tax payments. Sometimes, you might be assigned an incorrect or temporary tax code, which can result in the overpayment or underpayment of tax. One such tax code is the BR tax code, which is often referred to as an emergency tax code. There are certain circumstances under which you might be placed on the BR tax code. Hence, this guide aims at outlining the reasons you might be assigned the BR tax code and answers your question: how to change my BR tax code?

 

 

What Is A BR Tax Code?

According to HMRC, the BR (Basic Rate) tax code means that all your income is taxed at the basic rate of 20%. However, no tax-free Personal Allowance applied. Consequently, this can lead to overpayment if you are entitled to the standard personal allowance, which is set at £12,570 for the 2025/26 tax year. For greater clarity, HMRC calculates your tax code on the basis of your income and assigns it to you. Being placed on a BR tax code primarily indicates that you are associated with more than one job or pension. It also implies that your primary source of income is missing out on the benefit of a personal allowance owing to certain circumstances.

Understand Why You Have Been Assigned The BR Tax Code

Before figuring out how to change my BR tax code, it is imperative to understand the reason behind your BR code. Typically, the BR tax code is assigned in the following circumstances:

• The fundamental scenario of getting a BR tax code is when you start a new job and your new employer lacks your P45 form. In such a case,  your personal allowance will be entirely used by your main (first) job, while your new employer may apply the BR tax code. Moreover, the BR will remain in place until HMRC updates your tax code.
• The BR tax code can also be applied when you move from self-employment to employment. To clarify, if you are running a side business as a freelancer in addition to the job that pays you under the PAYE system, you might find the BR applied to one of your income streams.
• If you begin receiving additional income, like pension payments, while already being employed, the BR code might be applied to your pension earnings.

You can learn more about the P45 form and the PAYE system by reading our following guides:

• What is P45 form and why is it important in the UK?
• What is PAYE and why is it important?
• How to calculate pay as you earn tax​ (PAYE)?

Understanding How To Change My BR Tax Code

If you notice BR on your payslip, it is necessary to address it promptly so you do not end up paying more tax than necessary. Let’s discuss the steps to answer your question about how to change my BR tax code.

Review Your Payslip:

First and foremost, you must review your most recent payslip and locate your tax code. If you see BR, it means your employer is taxing your entire income at the basic rate of 20% without the Personal Allowance. Now, if you realise you have been wrongly assigned the BR tax code,  you must determine the course of action to rectify it.

Learn more about the BR tax code with our following guide:

• What is a BR tax code in the UK? A guide for employees.

Gather The Necessary Documents:

To resolve your BR tax code, it is essential for you to gather the following crucial documents:

• Your P45 from your previous employer.
• Details of your current income and employer. Here, you must ensure your current employer has accurate and updated tax information, including your P45 from former jobs.
• Any recent payslips that will display your current tax code.

Importantly, these documents will substantiate your claim of being incorrectly assigned the BR tax code, help HMRC determine the correct tax code, and calculate any overpaid tax you might be owed.

Contact HMRC:

Primarily, there are two ways to request a correction to your BR tax code:

You can either directly reach out to HMRC to explain that you have been placed on the BR tax code and request a correction. HMRC will review your income and issue a new tax code if required. Alternatively, you can contact HMRC online through your HMRC Personal Tax Account. After logging into your personal tax account, you can navigate to the “Income” or “Pay As You Earn (PAYE)” section. Then, select your current job and update any relevant employment or income details.

Eventually, HMRC will review the update and issue a new tax code to your employer.

 

 

Conclusion:

The BR tax code is a common issue among employees, especially those starting new jobs or with multiple sources of income. Although it ensures tax is collected, it does not take into account the personal tax-free allowance, which often unfavourably leads to overpayments. Hence, it is essential to understand how to change my BR tax code. In addition, correcting your tax code as soon as possible not only helps ensure you are not overtaxed but also ensures your payslips reflect your accurate take-home pay.

Nevertheless, understanding your tax code may seem a mind-boggling task, but it constitutes a crucial part of managing your income. That is where turning to professional help can make a difference. The certified and competent payroll accountants at Payrollservices.accountants can immensely help employers with accurate payroll processing, managing emergency tax codes, and ensuring compliance with HMRC regulations. Thus, whether you are an employee stressing over your tax code concerns or an employer wanting to get accurate and efficient payroll processing, our expert support can save you time, stress, and money.

Disclaimer: Please note that the information provided in this blog is exclusively for informational purposes and should not be considered financial advice. Always consult with a professional accountant to ensure compliance with UK laws and regulations.