BR, BR-W1 and BR-M1

Nearly everyone is entitled to a tax-free personal allowance, which means that a certain amount of your earnings each year are paid to you without being taxed.

However, a BR (Basic Rate) code means you do not receive any personal allowance with this employment.  Instead, you pay tax at the Basic Rate of 20% on all of your income.

Why is it allocated?

It usually means that you have another source of taxable income to which your allowance has already been allocated. For example, you may have an additional employer or receive a pension or state benefits.

Is this the best tax code for me?

You only have one allowance for all of your income sources and you can choose which of them it’s allocated to. As a general rule, it should be allocated to the employer through which you earn the majority of your income.

You may wish to consider asking HMRC to allocate your allowance to the umbrella company (KPPES Ltd).

If you work through multiple recruitment agencies, you can simplify your tax situation. Add all of your agencies to your Key Portfolio account and then ask HMRC to allocate your personal allowance to the umbrella company (KPPES Ltd). Your pay for all assignments will then be processed together under one tax code.