Tax codes
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1. Overview
Your tax code is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension. HM Revenue and Customs (HMRC) will tell them which code to use.
You’ll get a tax code for each employment or pension you have.
This guide is also available in Welsh (Cymraeg).
Find your tax code
You can find your tax code:
- by checking your tax code for the current year online - you’ll need to sign in or create an online account
- on the HMRC app
- on your payslip
- on a ‘Tax Code Notice’ letter from HMRC if you get one
If you check your tax code online or in the HMRC app, you can also:
- find your tax code for previous tax years
- sign up for paperless notifications - this means HMRC will email you when your tax code changes
2. Why your tax code might change
HM Revenue and Customs (HMRC) change your tax code if you need to pay a different amount of tax.
This usually happens when your income or circumstances change, for example if:
- you start a new job
- you get taxable state benefits
- you start to get income from an additional job or pension
- the interest on your savings is more than your Personal Savings Allowance
- your weekly State Pension amount changes
- your employer tells HMRC you have started or stopped getting benefits from your job
- you claim Marriage Allowance
- you claim expenses that you get tax relief on
- you’re paying the High Income Child Benefit Charge through your wages or pension
- you need to pay back the Winter Fuel Payment or Pension Age Winter Heating Payment
- you’ve been on the wrong tax code and owe tax
If you start a job and your new employer does not know your previous income details, you may be put on an emergency tax code.
If your tax code has changed, you can use the Check your Income Tax online service to find out why.
3. What your tax code means
Your tax code is made up of numbers and letters.
1257L is the tax code currently used for most people who have one job or pension.
HM Revenue and Customs (HMRC) will usually contact you to explain how they worked out your individual tax code if your tax code changes.
Check what your tax code means
Enter your tax code in the check what your tax code means tool to find out:
- what the numbers and letters mean
- how much tax you’ll pay
- what you may need to do next
What the numbers mean
The numbers in your tax code tell your employer or pension provider how much tax-free income you get from them in that tax year.
To work out your individual number, HMRC starts with your tax-free Personal Allowance and takes off any:
- income you have not paid tax on (such as untaxed interest or part-time earnings)
- other deductions in your tax code (such as company benefits or the High Income Child Benefit Charge)
They then replace the final digit with a letter.
If you have a K in your tax code the calculation is different.
Example
You’re entitled to the standard tax-free Personal Allowance of £12,570, but you also get medical insurance from your employer. As this is a company benefit it lowers your Personal Allowance and changes your tax code.
The medical insurance benefit of £1,570 is taken away from your Personal Allowance, leaving you with a tax-free amount of £11,000. This would mean your tax code is 1100L.
What the letters mean
Letters in your tax code refer to your situation, and how it affects your tax-free Personal Allowance and the rates of tax you pay.
| Letters | What they mean |
|---|---|
| 0T | Your Personal Allowance has been used up, or you’ve started a new job and your employer does not have the details they need to give you a tax code |
| BR | All your income from this job or pension is taxed at the basic rate (usually used if you’ve got more than one job or pension) |
| C | Your income or pension is taxed using the rates in Wales |
| C0T | Your Personal Allowance (Wales) has been used up, or you’ve started a new job and your employer does not have the details they need to give you a tax code |
| CBR | All your income from this job or pension is taxed at the basic rate in Wales (usually used if you’ve got more than one job or pension) |
| CD0 | All your income from this job or pension is taxed at the higher rate in Wales (usually used if you’ve got more than one job or pension) |
| CD1 | All your income from this job or pension is taxed at the additional rate in Wales (usually used if you’ve got more than one job or pension) |
| D0 | All your income from this job or pension is taxed at the higher rate (usually used if you’ve got more than one job or pension) |
| D1 | All your income from this job or pension is taxed at the additional rate (usually used if you’ve got more than one job or pension) |
| K | You have income that you are not paying tax on which is more than your Personal Allowance - find out about a K in your tax code |
| L | You’re entitled to the standard tax-free Personal Allowance |
| M | Marriage Allowance: you’ve received a transfer of 10% of your partner’s Personal Allowance |
| M1 | You’re on an emergency tax code |
| N | Marriage Allowance: you’ve transferred 10% of your Personal Allowance to your partner |
| NONCUM | You’re on an emergency tax code |
| NT | You’re not paying any tax on this income |
| S | Your income or pension is taxed using the rates in Scotland |
| S0T | Your Personal Allowance (Scotland) has been used up, or you’ve started a new job and your employer does not have the details they need to give you a tax code |
| SBR | All your income from this job or pension is taxed at the basic rate in Scotland (usually used if you’ve got more than one job or pension) |
| SD0 | All your income from this job or pension is taxed at the intermediate rate in Scotland (usually used if you’ve got more than one job or pension) |
| SD1 | All your income from this job or pension is taxed at the higher rate in Scotland (usually used if you’ve got more than one job or pension) |
| SD2 | All your income from this job or pension is taxed at the advanced rate in Scotland (usually used if you’ve got more than one job or pension) |
| SD3 | All your income from this job or pension is taxed at the top rate in Scotland (usually used if you’ve got more than one job or pension) |
| T | Your tax code includes other calculations to work out your Personal Allowance |
| W1 | You’re on an emergency tax code |
| X | You’re on an emergency tax code |
4. If you think your tax code is wrong
Usually, HM Revenue and Customs (HMRC) update your tax code using information they get from your employer or pension provider.
If your tax code is wrong, it’s usually because HMRC has incorrect or missing information.
To correct your tax code, check and update the details HMRC has about you.
Update your details
Using the online service is the quickest way to check and update your details.
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Sign in to the Check your Income Tax online service.
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Check your employment, pension, estimated taxable income, company benefit and expenses details.
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Update your details if there’s anything wrong or missing.
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Claim tax relief on your employment expenses - if you have any.
If you’ve left a job and did not get a P45 from your previous employer, ask them for one. This can help to update your details.
What happens next
If your tax code needs to change, HMRC will:
- update your tax code
- tell you and your employer the new tax code within 15 working days
After you’ve got your new tax code, if you’re paid:
- monthly - it should be on your next or the following payslip
- weekly - it should be on your third payslip
If your payslip does not show your new tax code, speak to your employer to check they’ve got it.
If you’ve paid the wrong amount of tax, you can get a tax refund or pay the tax you owe.
If you cannot use the online service
If you think your tax code is wrong and you cannot use the online service, you can contact HMRC.
If you’ve started a new job, you should wait 35 days for HMRC to get your new income details before contacting them.
If you’re contacting HMRC on someone else’s behalf
If you want to help friends or family with their tax you can register as a ‘trusted helper’.
If you’re an agent and you need to tell HMRC about a change in your client’s income fill in a PAYE Coding Notice query form.
5. If you've paid too much or too little tax
If you’re on the wrong tax code, you may pay too much or too little tax. You can get a refund or pay the tax you owe once HM Revenue and Customs (HMRC) has your income details for the tax year.
If you want a refund for anything other than a job or pension, check how to claim a tax refund.
If you’ve paid too much tax
When HMRC update your tax code, they check if they have all of your income details for the tax year.
If they do, they’ll work out the difference between how much tax you’ve paid and how much you should have paid.
They’ll ask your employer or pension provider to refund the difference in your pay. This will usually happen when they use your new tax code.
When your employer or pension provider gets your new tax code, if you’re paid:
- monthly - they should use it on your next pay or the following pay
- weekly - they should use it on your third pay
If HMRC do not have your details
You cannot get a refund until HMRC get your income details from your employer, pension provider or benefits office.
If you’ve changed jobs, give the P45 from your previous job to your new employer. If your previous employer did not give you a P45, ask them for one. This can give HMRC the details they need.
After the end of the tax year, HMRC get income details from employers, pension providers and the benefits office. HMRC will then:
- check how much tax you’ve paid
- send you a letter if you’ve not paid the right amount
- let you know how to get your refund, if you’ve paid too much
- update your tax code, if needed
If you have not paid enough tax
HMRC will:
- estimate how much tax you owe, when your tax code is updated
- adjust your tax code to collect the tax over one or more tax years, if possible
- check your tax after the end of the tax year and send you a letter if you’ve not paid the right amount
You’ll have an emergency tax code until the end of the tax year. In the new tax year, you’ll be put on a non-emergency tax code.
6. Emergency tax codes
You’re on an emergency tax code if your tax code ends in:
- W1 - used when you’re paid weekly, for example 1257L W1
- M1 - used when you’re paid monthly, for example S875L M1
- X - used when your pay dates vary, for example C663L X
You could also see ‘NONCUM’ on your payslip, depending on your employer’s payroll software.
If your tax code does not end in W1, M1, X or NONCUM, you’re not on an emergency tax code. You can check what your tax code means.
What an emergency tax code means
Usually, your tax is worked out based on your total income so far in that tax year.
If you’re on an emergency tax code your tax is worked out based on what you’re paid in that week or month only. You get taxed as if you’re paid that amount every week or month of the year.
This could mean you pay the wrong amount of tax.
If you’ve started a new job
When you’re paid for the first time, your new employer tells HM Revenue and Customs (HMRC) that you’ve started working for them.
If your new employer does not have your previous income and tax details, you’ll be paid using an emergency tax code. This is usually temporary.
If you’ve got a P45 from your previous job, give it to your new employer. This gives them your details and can help take you off the emergency tax code. If your previous employer did not give you a P45, ask them for one.
HMRC will usually update your tax code when they get all your details from your new and previous employers. They’ll send the tax code to you and your new employer. This can take up to 35 days from when you start your job.
If you have not paid enough tax, you’ll stay on the emergency tax code until you’ve paid the correct tax for the year.
If you’ve paid too much tax, you can get a tax refund.
If you started a job more than 35 days ago
If you think your tax code is still wrong, find out how to update your tax code.
If you’ve started getting company benefits or the State Pension
You might be put on an emergency tax code if you start getting company benefits or the State Pension. This is normal and helps you pay the right amount of tax for that tax year.
Check your tax code online to make sure it includes the company benefit or State Pension. If they’re not included, update your details in the tax code online service or by contacting HMRC.
You’ll have an emergency tax code until the end of the tax year. In the new tax year, you’ll be put on a non-emergency tax code.
7. If you have a K in your tax code
Tax codes with a ‘K’ mean you have income or deductions which are higher than your tax-free Personal Allowance and are not already being taxed.
For example, this can happen when you:
- are paying tax you owe from a previous year through your wages or pension
- get State Pension or taxable state benefits
- get company benefits you need to pay tax on - such as a company car
- get more interest on your savings than your Personal Savings Allowance
Your employer or pension provider uses the K tax code so that you pay tax for your other income or deductions at the employment or pension that the code is used on.
Employers and pension providers cannot take more than half of your pre-tax wages or pension when using a K tax code.