what is a br tax code

In the UK, a BR tax code is used to tax all income from a job or pension at the basic rate of 20% when usual tax-free allowances do not apply). This code is usually used temporarily until the employer has all the necessary details to give the employee a correct tax code and apply the correct income tax deductions. The BR code is not necessarily wrong, but it needs to be checked to ensure that the employee is not overpaying income tax. The most common reasons for being issued with a BR code include being given a BR tax code because the employer does not have enough information to give the correct code, going from self-employment into PAYE employment, or having an additional income such as a second job or pension. If an employee has a BR tax code and they believe it is incorrect, they should contact HM Revenue and Customs to clarify why they have a BR tax code and have it changed if necessary.