Find out more about what a PAYE tax code is and how it’s worked out. Checking your tax code is important and should be done each tax year or when your tax affairs change.
The PAYE system is how employees pay tax and every taxpayer is issued a tax code. This is the key to making sure that you don’t pay too much or too little income tax. It’s your responsibility to check your tax code and to get it changed if it’s wrong.
Your tax code is directly effected by the tax free Personal Allowance which often changes at the start of each new tax year. A change in the tax free personal allowance will usually bring you a new, corresponding tax code.
There are several other reasons that can affect your tax code which you should find out about, to help you only pay the tax you need to.
Anyone who is employed, or has income through PAYE, is given a tax code by the tax office (HMRC)…
Checking your tax code is a valuable exercise to make sure the right amount of tax is being deducted from your income…
An emergency tax code is used by your employer because your correct tax code is not available…
BR stands for Basic Rate and means all your income from this source is taxed at 20%…
The most common 2021-22 tax code for Basic Rate taxpayers with one source of income is: 1257L…
The 2024/2025 tax year starts on the 6th April 2024 bringing with it changes to the way some people pay tax…
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 used by your employer and/or pension provider to calculate the amount of income tax to deduct…
The 2026/2027 tax year starts on the 6th April 2026 bringing with it changes to the way some people pay tax…
Estimate how much tax you should pay on your income…
Free tax rebate guides and calculators helping UK taxpayers claim HMRC tax refunds since 2011.
