Guide
BR vs D0 Tax Code: What Is the Difference?
BR and D0 both ignore your tax-free allowance on that job, but D0 takes tax at a much higher rate.
Reviewed by IsMyPayRight editorial team
Last updated 17 April 2026
Updated for the 2026/27 tax year
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.
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.
The practical difference on a payslip
The big difference is simple: BR takes 20% income tax on all pay from that job, while D0 takes 40% income tax on all pay from that job. National Insurance still follows its own rules, so NI is not doubled just because the tax code changes.
If a job that should be on BR is put on D0 by mistake, the tax jump can be dramatic. That is why D0 on a main or only job is usually a red flag.
Check whether the job should really be flat-rate taxed
BR and D0 are often right on a second job and often wrong on a main job. These pages help you test that quickly.
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 if D0 or BR looks too harsh.
- Update HMRC if the allowance is on the wrong job.
Try the tool
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.
Why you can trust this guide
This guide is maintained by the IsMyPayRight editorial team team and is aligned to the PAYE assumptions used by the calculator and payslip checker.
We write against HMRC rules first, then explain the payroll implications in plain English so the article and the tool stay consistent.
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
We checked the claims in this guide against the official source pages below and the current 2026/27 calculator rules.