A BR tax code means tax is deductible on all earnings at Basic Rate, which is currently 20%. This code is most commonly used for a second employment or pension but, may also be used if they have started a new job, and they haven’t received a form P45 and haven’t completed a new starter checklist before their first pay day. For information about the new starter checklist see the section above.
From 6 April 2011 employers are required to deduct tax using the 0T (zero T) code on a non-cumulative basis. This means that the employee’s tax is looked at on a month by month basis rather than looking at the tax they have paid for the whole tax year. In instances where a P45 has not been given to payroll or where an employee has declared they have another form of income such as job/pension on which their main tax code is being operated. This code can also be issued on a cumulative basis.
0T is also applied for payments after leaving, for example if an employee has left and has been issued a P45, and the manager then processes a payment this will be taxed at 0 (Zero) T rate and the amount deductable depends on the employees salary.
If an employee is on one of the above tax codes (BR or 0 (Zero) T this means they may not have provided a P45 or a new starter checklist when they joined the Council/School. It is also possible they may have declared this on anew starter checklist. This may also occur if they are receiving a pension or they are in another employment or in receipt of benefits.
P45’s or new starter checklists should be sent to Human Resources, Walton Street, Aylesbury, quoting your personal number (see payslip), and their tax code will then be amended accordingly.
If an employee believes their tax code is incorrect but are in receipt of a pension or you have other employment or in receipt of benefits they should contact the HMRC directly (see HMRC contact details section for details). HMRC will only discuss the employees personal details with them, they will be able to provide the employee with information regarding why they have been allocated this code. If there are any errors they will be able to arrange for an amended tax code to be sent to us, the pay in the next pay period will be re-calculated, based on the code received.
Tel 0300 200 3300 – Employees helpline (you will also need to quote your National Insurance number, found on a P60, P45 or on a payslip.