Tax Code Checker UK
Understanding UK Tax Codes:
Your tax code plays a crucial role in determining how much tax you pay on your income. Using our Tax Code Checker, you can quickly verify if you're on the correct tax code and avoid overpaying or underpaying taxes. Whether you’re employed, self-employed, or have multiple income sources, your tax code impacts your take-home pay.
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Tax codes can be confusing, but understanding them is crucial for ensuring you pay the correct amount of tax. This page will list all the tax codes used in the UK and explain their meanings, so you can better manage your finances and avoid any potential tax issues.
What Are Tax Codes?
Tax codes are issued by HM Revenue and Customs (HMRC) to employers and pension providers. They indicate how much Income Tax should be deducted from your pay or pension. Each tax code is a combination of numbers and letters that represent your personal allowance and other tax-related details.
How to Use Our Tax Code Checker
With our simple-to-use tax code checker, you can input your current tax code and find out what it means. Our tool explains each part of the tax code, helping you understand if it’s correct based on your personal circumstances.
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Enter your tax code (found on your payslip, P45, or P60).
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Check your current tax code.
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Find out if you're due a refund or need to make adjustments.
Why Understanding Tax Codes Is Important
Knowing what your tax code means can help you ensure that you are not overpaying or underpaying your taxes. An incorrect tax code can result in significant financial discrepancies, so it's important to check your tax code regularly and understand what it represents.
List of UK Tax Codes and Their Meanings
Standard Tax Codes
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1257L: This is the most common tax code, providing the standard Personal Allowance of £12,570 for the tax year. It means you can earn up to £12,570 tax-free.
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L: This code indicates that you are entitled to the standard Personal Allowance. It is often used in combination with a number (e.g., 1257L).
Tax Codes for Second Jobs and Pensions
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BR: Basic Rate – All your income from this source is taxed at 20%, with no Personal Allowance. Commonly used for second jobs or pensions.
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D0: Higher Rate – All your income from this source is taxed at 40%, with no Personal Allowance. Also used for second jobs or additional sources of income.
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D1: Additional Rate – All your income from this source is taxed at 45%, with no Personal Allowance.
Emergency and Non-standard Tax Codes
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0T: No Personal Allowance – Used when your Personal Allowance has been fully used up or when HMRC does not have enough information about your income.
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W1/M1: Week 1/Month 1 – Emergency tax codes indicating that your tax is calculated on a non-cumulative basis, meaning each pay period is treated in isolation.
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NT: No Tax – No tax is deducted from your income. This code is rare and used in specific circumstances.
Marriage Allowance Tax Codes
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M: Marriage Allowance – Indicates that you are receiving 10% of your partner’s Personal Allowance.
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N: Marriage Allowance Transfer – Indicates that you are transferring 10% of your Personal Allowance to your partner.
K Codes
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K: Indicates that your total allowances are less than your total deductions, such as company benefits or tax owed from previous years. The number that follows shows how much should be added to your taxable income.
Scottish Tax Codes
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S: Indicates that your income is subject to Scottish Income Tax rates.
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S0T: Scottish equivalent of 0T.
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SBR: Scottish equivalent of BR.
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SD0: Scottish equivalent of D0.
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SD1: Scottish equivalent of D1.
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SK: Scottish equivalent of K
Understanding Your Tax Code
If your tax code includes a number and a letter (e.g., 1257L), the number represents the amount of tax-free income you can earn. You multiply the number by 10 to get your total tax-free allowance. The letter provides additional information about your tax status.
Detailed Examples​
Example 1: Basic Rate Taxpayer (BR)
John has two jobs. His main job uses the standard tax code 1257L, and his second job uses the BR tax code.
Main Job Income: £25,000
Second Job Income: £10,000
Main Job Tax: John’s income from his main job is taxed after his Personal Allowance of £12,570.
Taxable Income: £25,000 - £12,570 = £12,430
Tax: £12,430 x 20% = £2,486
Second Job Tax: All of John’s second job income is taxed at 20%.
Tax: £10,000 x 20% = £2,000
Total Tax Paid: £2,486 + £2,000 = £4,486
Example 2: Higher Rate Taxpayer (D0)
Sarah earns £60,000 from her primary job, which uses the tax code 1257L. She also receives a pension of £20,000, taxed under the D0 code.
Primary Job Income: £60,000
Personal Allowance: £12,570
Taxable Income: £60,000 - £12,570 = £47,430
Tax: (£37,700 x 20%) + (£9,730 x 40%) = £7,540 + £3,892 = £11,432
Pension Income: £20,000 taxed at 40%
Tax: £20,000 x 40% = £8,000
Total Tax Paid: £11,432 + £8,000 = £19,432
What Do the Letters and Numbers in a Tax Code Mean?
Tax codes contain letters and numbers that represent your personal tax-free allowance and other relevant details. Here's what the letters typically mean:
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L: You're entitled to the standard tax-free Personal Allowance.
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M: Marriage Allowance is being transferred to you from your partner.
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N: You're transferring your Marriage Allowance to your partner.
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BR: You’re taxed at the basic rate (20%) on all your income.
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D0: You’re taxed at the higher rate (40%) on all your income.
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D1: You’re taxed at the additional rate (45%) on all your income.
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K: Used when your total allowances are less than your total deductions.
How to Correct a Wrong Tax Code
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Review Your Tax Code Notice: Ensure that the information HMRC has is accurate.
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Contact HMRC: Call or write to HMRC to explain why you think your tax code is wrong.
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Update Your Employer or Pension Provider: Make sure they apply the correct tax code once it’s updated.
Common Reasons for Incorrect Tax Codes
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Starting a new job without providing a P45.
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Changing jobs or employers.
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Receiving multiple sources of income (such as pensions or rental income).
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Claiming expenses that affect your tax rate.
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Marriage Allowance adjustments.
Tax Rebates and Refunds
If you’ve been on the wrong tax code for some time, there’s a chance you may have overpaid on your taxes. In this case, you could be due a tax rebate. Use our Tax Rebate Calculator to see how much you could be owed.
Get Your Tax Code Right and Save Money
Ensuring your tax code is accurate can save you money. Use our Tax Code Checker to check your current code, and if adjustments are needed, we’re here to help with the next steps.
Additional Tools for Managing Your Taxes
Along with our Tax Code Checker, explore our other tools like the Tax Rebate Calculator and Dividend Tax Calculator to manage your taxes effectively.
Common Questions About Tax Codes
What is a tax code?
A tax code is a combination of numbers and letters used by HMRC to indicate how much Income Tax should be deducted from your pay or pension.
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How often are tax codes updated?
Tax codes are typically updated annually at the start of the new tax year but can be updated at any time if your circumstances change.
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What if I have multiple jobs or pensions?
HMRC will allocate your Personal Allowance to your main job or pension. Other sources of income might use different tax codes such as BR, D0, or D1.
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Why has my tax code changed?
Your tax code can change for various reasons, such as starting a new job, receiving a company benefit, changing your marital status, or having changes in taxable income.
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What should I do if I receive a tax code notice from HMRC?
Review the tax code notice carefully to ensure the information is correct. If you believe there is an error, contact HMRC immediately to rectify it.
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Can my tax code affect my take-home pay?
Yes, an incorrect tax code can result in too much or too little tax being deducted from your pay. It is important to ensure your tax code is correct to avoid discrepancies in your take-home pay.
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How do I correct an incorrect tax code?
If you think your tax code is incorrect, contact HMRC to explain the issue. You may need to provide additional information about your income and circumstances to have it corrected.
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What does a ‘K’ tax code mean?
A ‘K’ tax code indicates that your total allowances are less than your total deductions. This could be due to taxable benefits from your employer or unpaid tax from previous years.
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Do tax codes apply to all forms of income?
Tax codes primarily apply to income from employment and pensions. Other forms of income, such as savings interest, rental income, or self-employment earnings, are usually taxed differently and may require self-assessment.
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Can I have the same tax code as someone else?
Yes, many people can have the same tax code, such as 1257L, which is the standard code for individuals receiving the standard Personal Allowance. The specific combination of numbers and letters is what makes a tax code unique to an individual’s circumstances.