what is tax code br

A tax code BR is a tax code used in the UK that stands for Basic Rate. It means that all your income from a particular job or pension is taxed at the basic rate, which is currently set at 20%. This tax code is usually used when you have more than one job or pension. The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year. HMRC works out your individual number based on your tax-free Personal Allowance and income you have not paid tax on (such as untaxed interest or part-time earnings). If you have more than one source of income and you are earning more than £12,750 in the 2022/2023 tax year, then you will be placed on a tax code BR. This means that you are paying the set rate of 20% on your income. If you have any questions about your tax code BR, it is best to contact HMRC directly for advice.