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In short
- BR taxes every pound at 20%, D0 at 40%, D1 at 45%, with no allowance.
- Right for a second job when your first uses all your allowance. Wrong on your only or main job.
- W1, M1 and X are emergency suffixes: the code ignores earlier months in the year.
- Emergency and BR codes are the most common cause of refunds after a job change.
BR: basic rate on everything
Usually given to a second job or a pension. If the first job does not use the full £12,570, you overpay on the second. If BR is on your only job, you are paying £2,514 a year too much.
D0 and D1
For a second income when your main job already puts you in the 40% or 45% band. Correct for high earners with two sources, wrong if your main income has fallen.
Emergency codes: W1, M1, X
Week 1 and Month 1 codes treat each payday as the first of the year. They are used when a new employer has no P45 and no starter details. Any unused allowance from before you started is not applied until HMRC reconciles the year, so a gap between jobs almost always means an overpayment.
How to fix it
- Give your new employer your P45 or complete the starter checklist.
- Check your personal tax account shows both jobs with the allowance split you want.
- Ask HMRC to split the allowance if one job does not use it all.
- For past years, claim the overpayment within 4 years.
Worked example
A hospitality worker leaves a job in early June, starts another in September on 1257L M1. Three months of allowance, £3,142, are never applied. Overpaid £628 for the year until reconciled or claimed.
Questions
Is BR always wrong?
No. If your main job pays over £12,570, BR on a second job is correct.
How do I know if HMRC has already refunded it?
You would have received a P800. If not, it is unclaimed. What is a P800.
This guide is general information, not advice about your circumstances. Figures use HMRC rates for the 2026 to 2027 tax year. We are a paid tax agent and not HMRC.
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