Tax codes are unique to the individual and cannot not be changed without HMRC approval.
Every employee will have a tax code allocated by HMRC.
Most tax codes change on the 6th April
Tax codes are unquie to the individual and cannot be changed by anyone except HMRC. If your employee thinks their tax code maybe incorrect, the employee should contact HMRC to discuss their concerns. Only the employee can ask HMRC to check the tax code they have had been issued with.
Tax codes are made up using a series of numbers and letters
The numbers indicate how much gross pay can be earned before tax becomes deductible. The letter describes the employment status of the employee
Example for 2019/20
1250L becomes £12,500
L is a standard tax code letter, the employee is entitled to the basic tax free Personal Allowance
W1 or M1
Tax codes ending in W1 or M1 are emergency tax codes, tax will calculated on gross earnings in the current pay period only
BR codes are mainly for employees with more than one job. However, if the employee’s gross total income from numerous jobs is equal to or less than the annual personal allowance, we would suggest the employee contact HMRC to request their personal allowance be split between all sources of income
NT tax codes are usually issued for Students or seasonal employees who are employed for holiday periods only. Employees who fall into this category don’t usually pay tax unless their gross earnings exceed the annual tax free personal allowance
M tax codes stand for marriage allowance your partner has transferred a proportion of their personal allowance to you (marriage allowance guide)
N tax codes stand for marriage allowance you have transferred a proportion of your personal allowance to your partner (marriage allowance guide)
Y tax codes stand for a larger personal allowance due to age i.e. if you were born before 6th April 1938 (Age Allowance)
T codes are used if your personal allowance has been reduced due to other income
0T means all your personal allowance has been used up, or you have started with a new employer and cannot give them all the necessary starter information like a P45 from previous employment
We offer free employer support to all our clients