Millward, May & Co - Wokingham Accountants
Wokingham Accountants

Tax Code

Tax Codes

L

You’re entitled to the standard tax-free Personal Allowance. Take your code & multiply it by 10 - this will give you your tax free amount (e.g. 1185L x 10 = £11,850 as your tax free amount).


M

Marriage Allowance: you’ve received a transfer of 10% of your partner’s Personal Allowance.


N

Marriage Allowance: you’ve transferred 10% of your Personal Allowance to your partner.


T

Your tax code includes other calculations to work out your Personal Allowance, for example it’s been reduced because your estimated annual income is more than £100,000.

Much like an L code the value here shows the tax free amount you’ll receive (see L code above).


0T

Your Personal Allowance has been used up, or you’ve started a new job and your employer doesn’t 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).


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).


NT

You’re not paying any tax on this income.


S

Your income or pension is taxed using the rates in Scotland.


W1/M1

If your tax code has ‘W1’ or ‘M1’ at the end - you have an emergency tax code. You may be put on an emergency tax code if you’ve started:

  • a new job

  • working for an employer after being self-employed

  • getting company benefits or the State Pension

Emergency tax codes are temporary. Your employer can help you update your tax code.


K

Tax codes with ‘K’ at the beginning mean you have income that isn’t being taxed another way and it’s worth more than your tax-free allowance. For most people, this happens when you’re:

  • paying tax you owe from a previous year through your wages or pension.

  • getting benefits you need to pay tax on - usually company benefits listed on your P11D.


Wrong tax code

If you think your tax code is wrong, for example if the numbers and letters don’t accurately reflect your situation, you can contact HMRC to get it changed by using their online service or by calling them on 0300 200 3300.