01 · Start here
Use the code on your payslip
You can usually find your tax code on your payslip, P45, P60, HMRC app, Personal Tax Account or a Tax Code Notice from HMRC. The code can differ between jobs if you have more than one source of income.
02 · The numbers
A quick clue to your tax-free amount
For a standard code, multiply the number by 10. Code 1257L therefore points to £12,570 of tax-free income. HMRC may reduce the number for untaxed income, taxable benefits or tax owed from an earlier year.
K codes work differently: they indicate that deductions HMRC needs to collect are greater than your available allowances.
03 · Common letters
The letter explains how the code should be used
| Code | Usually means |
|---|---|
| L | Standard Personal Allowance |
| BR | All income from this job taxed at the basic rate |
| 0T | No Personal Allowance available for this job |
| D0 / D1 | All income taxed at the higher / additional rate |
| M / N | Marriage Allowance received / transferred |
| S | Scottish Income Tax rates apply |
| C | Welsh Income Tax rates apply |
| NT | No tax deducted from this income |
04 · W1, M1 and X
Emergency codes look only at the current pay period
A code ending W1, M1, X or marked NONCUM is non-cumulative. Payroll calculates tax from that week or month rather than your total income so far in the tax year. It is often temporary when starting a job, but it can mean the deduction differs from an annual estimate.
05 · Check at source
If the code looks wrong, ask HMRC
Your employer applies the code but HMRC normally issues it. Check the official tax-code service, update your details if necessary and give a new employer your P45. Do not invent a code to force a particular calculator result.
Official sources