Guide
1257L vs BR: Compare Tax on the Same Salary
If your main job is on BR instead of 1257L, you can easily pay too much tax because no allowance is being used there. The difference is large enough to make a normal payslip look wrong even when your gross salary has not changed.
Quick answer
1257L is the standard code for many people with one main job or pension. BR means all income from that job is taxed at 20%, so it is usually more suitable for a second job or pension.
On this page
What 1257L means
GOV.UK says 1257L is the tax code currently used for most people who have one job or pension. The number points to the standard tax-free allowance and the L shows you are entitled to the usual allowance.
On a normal cumulative code, payroll spreads that allowance across the year before charging tax on the rest of your pay.
What BR means
BR means all income from that job or pension is taxed at the basic rate. There is no tax-free allowance on that source, even if you still have unused allowance somewhere else in your overall income picture.
That is why BR can be correct on a second job and still feel wrong when you first see the payslip.
Which code is more common on a main job
For many employees, 1257L is the more normal code on a main job. HMRC also tells people checking a new job record to make sure only one employer is using 1257L at any one time.
If your only job is on BR, the first question is whether HMRC is missing old or new job details rather than whether payroll has made up the code by itself.
How the take-home difference happens
Assume £30,000 annual salary, England in 2026/27, standard allowance available for the 1257L case, NI category A and no pension, loans or other adjustments. These are annual estimates, not a mid-year refund calculation.
| Item | 1257L | BR |
|---|---|---|
| Income Tax | £3,486 | £6,000 |
| Employee NI, annual estimate | £1,394.40 | £1,394.40 |
| Take-home pay | £25,119.60 | £22,605.60 |
The difference is £2,514 a year (£209.50 monthly equivalent). If your allowance is already used by another income source, BR can be correct and that difference is not an overpayment. For correction and refund routes use the BR guide; this page compares the deduction mechanics.
If the allowance is on the wrong job
These next steps help when BR is showing on a job that should probably be using your main allowance.
How to decide if BR is actually correct
BR may be correct if this is your second job, a pension, or a temporary setup while HMRC waits for better information. It is more likely to be wrong if this is your only job or the job where you expect your full tax-free allowance to sit.
If you are unsure, check the HMRC record first, then ask HMRC to move the allowance if it is on the wrong employment.
What to check
- 1257L normally gives the standard £12,570 tax-free allowance.
- BR gives no tax-free allowance on that job.
- Only one employer should normally be using the main allowance at a time.
What to do next
- Check whether this job is meant to be your main PAYE income.
- Compare the code on your payslip with HMRC’s current record.
- Use the checker if your net pay still looks too low.
Try the tool
Check your payslip or model a change.
Use the checker if you already have a payslip. Use the calculator if you want to model take-home pay or salary-sacrifice changes before payday.
About this guide
Published by IsMyPayRight to help you understand pay and deductions. Guides use official reference material and practical examples, with AI assistance in content preparation.
This is general guidance, not a professional review of your circumstances. Read our editorial process and corrections information.
Methodology and sources
See how the calculations work, which sources they use, how results are tested, and which payroll details the estimates cannot verify.
Common questions
- Is 1257L the normal code for most people?
- Yes. GOV.UK says 1257L is the code used for most people who have one job or pension.
- Why would HMRC put me on BR instead of 1257L?
- Usually because HMRC thinks your tax-free allowance is being used on another job or pension, or because it is waiting for better information.
- Can BR be temporary?
- Yes. A new-job setup or missing details can leave BR in place until HMRC updates the record.
Official sources
Official sources
Use these references to check the rules behind this guide. Check the tax year and your circumstances before applying an example to your own pay.