What is the 2023-24 tax code?
The 2023/2024 tax year starts on the 6th April 2023 bringing with it changes to the way some people pay tax.
Your tax code is an important part of the tax mix for people who have income through PAYE and should be checked to make sure it is accurate.
The basic 2023-24 tax code is set at: 1257L
It is the same standard tax code as the 2022/2023 tax year and it’s expected to be kept in use until April 2026.
2023/2024 1257L tax code
The 1257L tax code reflects the fact that the tax free personal allowance is not changing in the 2023/2024 tax year.
1257L is the tax code everyone will start with and then your tax code can change either upwards or downwards depending on your circumstances.
Where do I find my 23/24 tax code?
The easiest places to find your 23/24 tax code are on your payslip or in your online personal tax account.
Some people but not everyone will receive a P2 notice of coding through the post from HMRC.
Check your 2023/2024 tax code
Checking your 2023/2024 tax code is recommended to ensure it is correct. If it is too high you will not pay enough and if it is too low you will pay too much income tax.
You can use our free tax code guide to help check your code and what to do if you think your tax code needs updating.
In cases where you think your tax code is wrong you should contact HMRC as soon as you can to allow for it be checked and changed where necessary.
Why is my 2023/2024 tax code not 1257L?
There are a number of factors which can change your tax code.
A tax code that is not 1257L includes something that will take your tax free personal higher or lower. In some cases you might lose all of your personal allowance and will start paying tax on the first penny you earn.
Your tax code is higher than 1257L example:
Where your tax code is higher it is common for an allowance to be added to your code to help cover the cost of work related expenses.
Your tax code is lower than 1257L example:
A tax code that is lower than 1257L could include a company benefit like a company car or health scheme.
What is the 2023/2024 Personal Allowance?
The figures that make up your tax code show how much Personal Allowance you’re entitled to.
In the case where you have a 1257L tax code the following applies:
- 1257 X 10 = 12,570 the Personal Allowance rate is £12,570
It means everything earned under PAYE up to £12,570 is not taxed. All income after £12570 is taxed at the relevant Basic, Higher or Additional income tax rates.
What should I do if I think my 2023-2024 tax code is wrong?
HMRC needs your help sometimes to ensure you have the correct tax code. The system isn’t perfect because when personal circumstances change the tax office are not always made aware until a later date if at all.
You can call HMRC on 0300 200 3300 to discuss your tax code with an advisor who can make amendments where appropriate. Working with the tax office helps them to deduct only the income tax you owe and no more.