Tax codes

[Somebodyimportant1]

Hi all, please is the tax code BR a higher rate than other tax codes?

I have just realised my Tax code on payslips is BR and I think the tax is high.

I will call HMRC but how long does it take to get my money back if over taxed? Any ideas and y is it that I have BR code in the 1st place?

BR is basic rate, you are being taxed at 20% on your full salary and not receiving your tax free allowance of £12570. If this is your only job you need to check your online tax account at gov.uk and ring HMRC.

@Internetio I Run a little business as self employed & pay tax on that. Could that be the reason I'm on BR?

Yes, so it looks like your personal allowance is being used for your self Employed tax returns. When you submit your tax return they will calculate the correct tax bill and either refund or demand payment as needed.

I am self employed, sole trader. I also have several small employments under PAYE.

This tax year, all my employments are BR tax code. In the past I have had a tax code allocated to the one paying the most, BR for the others.

I have put a request in to HMRC to review my tax codes but have not had a response - so if you want to fix it, then I suggest you call and wait in the queue, not use the online system.

Ultimately it sorts itself out when you complete your tax return. They are allocating your personal tax allowance to your self employment. However from a cash flow perspective you may want to have more take home pay from employments, then pay the tax on the self employment later on.

Interesting to find someone else with similar situation to me where HMRC seems to have allocated personal allowance to the small business income, not to employment(s).

[quote Somebodyimportant1]@Internetio I Run a little business as self employed & pay tax on that. Could that be the reason I'm on BR?[/quote]
Yes. If you earn less than personal allowance on your self employed business then see if you can switch so the allowance is used against your employment.