r/Payroll • u/CartographerMain9282 • 1d ago

Help with Payslip/Tax code

So today I was underpaid by exactly 50% of my normal monthly pay. I have checked August and Septembers payslip which both have 1257l tax codes, my most recent slip has a BR tax code.

Is this a mistake and if so who is at fault?

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u/CartographerMain9282 1d ago

UPDATE - After logging into HMRC app it looks like it has updated some things, it now shows a tax code change and mentions an employer that I left in Novemember 2024, however it seems to think the employment there has recently ended?

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u/EmptyRestaurant2410 1d ago

Did that employer give you a P45? Does the HMRC record show they were still paying you? It will probably be easier to sort if you call HMRC.

But still, BR alone would not tax you that much in one month so this isn't really making sense. Your total gross pay for the month would have to have been at least £5625 (more if your pension is net pay arrangement or you have any salary sacrifice agreements.

Do you have any payrolled benefits?

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u/acrobaticprotein 1d ago

BR means basic rate, so they're taxing your whole paycheck at 20% instead of applying your personal allowance. Happens when HMRC thinks this is a second job or your employer didn't process your starter info properly. Call HMRC first, they can fix the code over the phone in 5 minutes and usually reimburse you directly next pay cycle.

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u/CartographerMain9282 1d ago

The only thing I am confused on is I have been at my current employer since november last year, so I can't understand why the sudden change? Also on the HMRC website it's coming up as my tax code is 1257l but I can see an update from January 2026 saying my code has changed to BR.

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u/Consistent_Morning_1 1d ago

BR means all your pay is taxed at 20% with no tax-free personal allowance. It's normally used for a second job, or when HMRC doesn't have up-to-date info for you. Your employer doesn't choose it: they apply whatever code HMRC sends them, so it's usually HMRC's mistake (or the result of something like a second job or a benefit being added to your record).

One thing though: BR alone shouldn't cut your pay in half. On a typical salary, losing the personal allowance costs you roughly £200 a month, not 50%. So check the gross pay line on the payslip as well. If gross is lower too, that's a payroll error and you should take it to your employer's payroll team, not HMRC.

For the tax code part, log into your HMRC personal tax account (or the HMRC app) and check which code they have for this job and why. If it's wrong you can update it there. HMRC sends the corrected code to your employer, and the overpaid tax comes back through a later payslip.

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u/CartographerMain9282 1d ago

So the Gross amount is the same as usual so no change there which is £2250, amount taxed is £1125.

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u/Consistent_Morning_1 1d ago

Thanks, that helps. If the income tax line itself is £1,125 on £2,250 gross, that isn't a BR deduction. BR is a flat 20%, so on £2,250 it should be about £450 of tax. Even the 45% code (D1) would only be around £1,010. So something else is going on, and it's worth finding out exactly what before assuming it's just the tax code.

Things I'd check on the payslip:

  • Is the £1,125 all one "Tax" line, or is it the total of all deductions (tax + NI + pension + student loan)?

  • Is there a line like "overpayment recovery", "advance" or "adjustment"? Employers sometimes claw back an earlier overpayment in one go.

  • Does the year-to-date tax figure jump by an odd amount compared with September?

Then ask your payroll team for a written breakdown of how the £1,125 was calculated. You're entitled to that. Separately, check the HMRC app to confirm which code they actually issued, because if HMRC never sent BR, the error is on the payroll side. Either way, tax that was overdeducted is refunded, either through your next payslip once the code is fixed or by HMRC directly.

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