UK Tax Codes
UK tax codes tell your employer or pension provider how much tax-free income you are eligible to receive in the tax year. This is based on your personal allowance. Your tax code is usually made up of a number and 1 letter – it refers to your situation and how it affects your tax free personal allowance. For more information on specific UK tax codes see the table below.
What does your UK tax code mean?
BR All income is subject to tax at the Basic Rate of 20%
DO All income will be taxed at the higher rate of 40%
D1 All income will be taxed at the additional rate of 45%
K The numbers show the tax when deductions due are greater than the allowance..
L The standard. The numbers show the personal allowance x 10
M The marriage allowance. Your partner has transferred 10% of their personal allowance to you.
N Also the marriage allowance but shows you are the one doing the transfer.
NT No tax payable.
OT Your allowance has been used up or you have a new job but no P45
S Scottish rates
T Your allowance has been cut when you earn more than £100,000
M1 Emergency tax code. Tax based on the monthly amount not cumulative.
W1 Emergency tax code. Tax based on the weekly amount not cumulative.
Where to find your tax code
You can find your tax code:
- On your payslip from your employer
- The check your income tax service (this also details how your income tax is calculated)
- Your P45 form
- Your P60 from (given at the end of each tax year)
- Your PAYE coding notice
Why does your tax code change?
Your tax code changes as a result of changes in your personal circumstances. When your tax code changes you, your employer, the payroll agency or the pension provider tells HMRC about the changes in your situation. HMRC then works out what to do with your tax code or tax codes (if you have more than 1). HMRC will then supply you with a new tax code that matches your current situation.