What is the difference between br and 0t tax code

Speak to your employer if you have provided this information or to obtain it as soon as you can. The OT and BR tax codes both give you no personal allowance tax-free pay.

Whereas the BR tax code only taxes your salary at the basic rate. While you are on an emergency tax code there is a chance that you could pay too much or too little tax. Which may sound great, until HMRC catch up with you and you get an unexpected letter about paying them the tax you owe. Only HMRC know that. HMRC deal with the tax codes for millions of employees, so it is very easy for an incorrect tax code to slip through the net.

In fact, it is estimated that 1 in 10 UK employees are on the wrong tax code. Which is why checking your tax code is so important! If your tax code needs changed they can adjust your code over the phone and then send your employer or other source of income your new code so they can start using it as soon as possible.

If you have over paid tax because of an OT tax code you will receive any refund of tax from HMRC after your tax code has been changed. More Tax Codes :. What is an OT tax code? The tax code OT means that you have no tax free personal allowance. The emergency tax code will be written on your payslip — you can generally find it near your national insurance number.

The rates you pay on an emergency tax code are often much higher than your normal tax bill, so the amount you were expecting to be paid may be quite different to what you receive. Generally, HMRC will adjust your payments as it gathers information about your income. But you may end up paying more tax than you need to, so it's worth checking to make sure your record is correct.

Most commonly, an emergency tax code will end with M1 or W1, indicating that your tax is non-cumulative - meaning, your tax will be calculated based on your pay this period, not your overall year-to-date earnings. M1 will be applied if you're paid monthly, while W1 will be used if you're paid weekly. If your pay period is non-standard, your tax code might end in X. Alternatively, you might be put on an OT tax code as an emergency measure if HMRC has insufficient information about your annual income.

However, the tax code does not take into account any backlog of allowance that may be due to you — for example, if you were unemployed for several months. For this reason, you could miss out on allowances if your tax code is not adjusted. The BR code is most often used if you have additional sources of income that have used up your tax-free personal allowance - for example, a second job or a pension. You might also be put on this tax code if your employer does not provide HMRC with the details they need to give you a tax code.

The W and M codes indicate that your tax is calculated for only that pay period, rather than cumulatively. It should be changed for you by HMRC, but there are things you can do to speed it up — namely giving your employer your P If you don't have a P45, your employer will ask you to fill in a starter checklist.