Guide
BR vs D0 Tax Code: 20% vs 40% Explained
BR and D0 both ignore your tax-free allowance on that job, but D0 takes tax at a much higher rate. If either code appears on your main job, it is worth checking whether HMRC has allocated your allowance to the right place.
Quick answer
BR usually means all pay from that job or pension is taxed at 20%. D0 usually means all pay from that job or pension is taxed at 40%. Both are commonly used on a second job or pension, not a main job.
On this page
What BR means
HMRC says BR means all your income from that job or pension is taxed at the basic rate. In practice that means 20% PAYE on all taxable pay from that source, with no tax-free allowance set against it there.
BR is often correct on a second job or a small pension where your tax-free allowance is already being used somewhere else.
What D0 means
HMRC says D0 means all your income from that job or pension is taxed at the higher rate. In practice that means 40% PAYE on all taxable pay from that source, again with no tax-free allowance on that job.
D0 is a specialist code. It is usually only right when your main income has already used your allowance and your basic-rate band.
D0 or DO: reading the code
The code is D0: a capital D followed by the digit zero. If you searched for “DO tax code”, this is the code to compare with your payslip and HMRC notice.
D0X, D0 M1 and D0 W1: what the extra marker means
If your payslip shows D0X, read it as D0 plus the X marker. The search spelling “DOX” uses a letter O where the code has a zero. D0 M1 and D0 W1 apply D0 on a month 1 or week 1 basis. The marker changes the pay basis, not the 40% rate or the absence of a tax-free allowance.
W1, M1 and X mean payroll works from the current pay period without reconciling earlier pay and tax. D0 can also run cumulatively, taking earlier pay and tax into account. Read cumulative vs M1/W1 tax for the difference. The marker alone does not establish whether HMRC chose the right code or whether a refund is due; use the wrong tax code checklist to review your income record.
The practical difference on a payslip
Assume £1,000 taxable monthly pay from the affected job, England or Northern Ireland in 2026/27, no pension or other adjustments and the code shown applied to all of that pay.
| Item | BR | D0 |
|---|---|---|
| Taxable pay | £1,000 | £1,000 |
| Income Tax | £200 | £400 |
| Pay after Income Tax, before other deductions | £800 | £600 |
The £200 difference is caused by the code’s rate. NI follows its own category and pay-period rules; changing BR to D0 does not double NI. These deductions do not prove which code is correct for your combined income. Wales uses CBR/CD0; Scottish flat-rate codes use different rates.
Compare the deductions, then check HMRC’s record
The checker compares one payslip with estimates for the figures and code you enter. It cannot establish whether HMRC allocated the right code across all your income; review your HMRC record for that.
When each code is usually right
BR is often used when you have more than one job or pension and HMRC wants your tax-free allowance used on another income source. D0 is more likely when your total income is already high enough that extra pay from this job sits in the higher-rate band.
The important point is that the code is about your full PAYE picture, not whether this one job feels big or small on its own.
What to do if the code looks wrong
Check your HMRC app or Personal Tax Account first. HMRC says you can review whether only one employer is using 1257L and whether your employers and estimated income are correct.
If BR or D0 is on the wrong job, tell HMRC which job is your main one. Payroll usually has to use the code HMRC sends, so the real fix normally starts with HMRC rather than your employer changing it manually.
What to check
- BR uses the basic rate on all pay from that source.
- D0 uses the higher rate on all pay from that source.
- Neither code gives that job any tax-free allowance.
What to do next
- Check whether this is a second job or pension rather than your main one.
- Use the payslip checker to compare deduction estimates for the code shown.
- Update HMRC if the allowance is on the wrong job.
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 BR always better than D0?
- Only if BR is the right code for that income source. BR still gives no tax-free allowance on that job, but D0 is harsher because it taxes all pay at 40%.
- Can D0 be correct on a second job?
- Yes. If your total income is already in the higher-rate band, HMRC can use D0 on a second job or pension.
- Should my main job ever be on D0?
- It can happen, but it is unusual. If your main or only job is on D0, it is worth checking with HMRC straight away.
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.