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 to collect the right tax.
You can check your Income Tax online to see:
What does your tax code mean?
Your tax code will normally start with a number and end with a letter.
How are the numbers worked out?
The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year.
What does each letter mean?
Letters in your tax code refer to your situation and how it affects your Personal Allowance.
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 |
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 |
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) |
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 |
S0T | 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 |
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 top rate in Scotland (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 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) |
What if your tax code has ‘W1’ or ‘M1’ at the end?
These are emergency tax codes.
What if your tax code has a ‘K’ at the beginning?
Tax codes with ‘K’ at the beginning mean you have income that is not being taxed another way and it’s worth more than your tax-free allowance.
For most people, this happens when you’re:
Your employer or pension provider takes the tax due on the income that has not been taxed from your wages or pension – even if another organization is paying the untaxed income to you.
Employers and pension providers cannot take more than half your pre-tax wages or pension when using a K tax code.
Source: gov.uk