Check if your tax code is correct

10-09-2019

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 your tax code is
  • If your tax code has changed
  • How your tax code is worked out
  • How much tax you’re likely to pay

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.

  • HMRC works out your tax-free Personal Allowance.
  • Income that you have not paid tax on (such as untaxed interest or part-time earnings) and the value of any benefits from your job (such as a company car) are added up.
  • The income that you have not paid tax on is taken away from your Personal Allowance. What’s left is the tax-free income you’re allowed in a tax year.
  • The last digit in the tax-free income amount is removed.

What does each letter mean?

Letters in your tax code refer to your situation and how it affects your Personal Allowance.

LYou’re entitled to the standard tax-free Personal Allowance
MMarriage Allowance: you’ve received a transfer of 10% of your partner’s Personal Allowance
NMarriage Allowance: you’ve transferred 10% of your Personal Allowance to your partner
TYour tax code includes other calculations to work out your Personal Allowance
0TYour 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:

  • Paying tax you owe from a previous year through your wages or pension
  • Getting benefits you need to pay tax on – these can be state benefits or company benefits

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