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).
You’re not paying any tax on this income.
Your income or pension is taxed using the rates in Scotland.
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.
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.