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What is the difference between the BR and the 503L tax codes?

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What is the difference between the BR and the 503L tax codes?

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BR is NOT an emergency tax code. The emergency tax code is 503L. BR stands for basic rate, and a tax code of BR means all your income from that job is taxed, and that you are not receiving any tax free allowance. BR is usually used if you have a second job. Since all your tax free allowance is being used up by one job, all of your income gets taxed in the second job. Tax code of 503L means you get an annual tax free allowance of £5035 – ie thats the amount you can earn in one tax year that is not taxed at all. (Its not £5039 as stated in another response). If your correct tax code for the 2005/6 year was 503L but BR has been used, then you will have overpaid tax and are entitled to a refund.

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