Every tax code has a different meaning. The table below shows the tax codes used for England, Wales & Scotland. If you believe you have the wrong tax code, we will guide you through updating HMRC so you are taxed correctly.
| Tax Code Letter | What it means? |
|---|---|
| L | Most common tax code, Includes personal allowance |
| M | You receive 10% of your partner’s personal allowance (Marriage Allowance) |
| N | You transfer 10% of your personal allowance (Marriage Allowance) |
| T | Includes other calculations |
| OT | You have used your personal allowance, or you have started a new job |
| BR | All income is taxed at basic rate (Due to second job) |
| D0 | Income is taxed at higher rate (Due to second job) |
| D1 | Income is taxed at additional rate |
| NT | No tax applied to this income |
| C – Standard tax if you live in (Wales) | |
| CBR | All income is taxed at basic rate (Due to second job) |
| CD0 | All income is taxed at basic rate (Due to second job) (Wales) |
| CD1 | Income is taxed at additional rate (Wales) |
| C0T | You have used your personal allowance, or you have started a new job (Wales) |
| S – Income is taxed using Scotland rates | |
| SBR | All income is taxed at basic rate (Due to second job) (Scotland) |
| SD0 | Income is taxed at higher rate (Due to second job) (Scotland |
| SD1 | Income is taxed at higher rate (Scotland) |
| SD2 | Income from this job or pension is taxed at the top rate in (Scotland) |
| SOT | You have used your personal allowance, or you have started a new job (Scotland) |
| Emergency Tax Codes | |
| 1257L W1 | These mean you’ll pay tax on all your income above the basic Personal Allowance. |
| 1257L M1 | These mean you’ll pay tax on all your income above the basic Personal Allowance. |
| 1257L X | These mean you’ll pay tax on all your income above the basic Personal Allowance. |
How Do I Find My Tax Code?
You can find your tax code on your payslip. If you don’t receive a payslip from your employer, you can ask payroll what your tax code is.
Another way is to create a personal tax account online. You can do this by following the link here or visiting https://www.gov.uk/check-income-tax-current-year
Emergency Tax Codes
If you start a new job, you may find you have an emergency tax code applied; this will affect the amount of tax HMRC collects from paye.
If you pay too much tax because your tax code is incorrect, you could apply for a tax refund at the end of the tax year. To claim a tax refund, follow the link here or search for https://www.gov.uk/claim-tax-refund.