Tax Code
A code to determine what tax is being deducted from your pay.
What is a tax code?
A tax code is a series of numbers and letters used by HM Revenue and Customs (HMRC) to determine how much income tax should be deducted from your salary or pension. It is based on various factors such as your income, allowances, and tax reliefs. Your tax code is usually provided by HMRC and should be given to your employer or pension provider.
What are the different types of tax code?
There are several types of tax codes that can be assigned to individuals. The most common ones include:
- 1257L: This is the standard tax code for most people with one job and no additional income sources.
- BR: This code is used when all your income is taxed at the basic rate.
- 0T: This code is used when you are taxed with no personal allowance.
These are just a few examples of the different tax codes that may be assigned based on individual circumstances.
What does a ‘K’ tax code mean?
A 'K' code in a tax code indicates that there are additional deductions or adjustments to be made to your taxable income. This could be due to factors such as state benefits, company benefits, or outstanding taxes from previous years. It is important to review your tax code carefully and contact HM Revenue and Customs (HMRC) if you have any questions or concerns regarding the 'K' code on your tax code.
What tax code should I be on?
The tax code you should be on depends on various factors such as your income, allowances, and tax reliefs. It is determined by HM Revenue and Customs (HMRC) based on the information you provide. It is important to review your tax code regularly and notify HMRC if there are any changes in your circumstances that may affect your tax code.
Where do i find my tax current code?
You can find your tax code on your payslip, P60 form, or any correspondence from HM Revenue and Customs (HMRC). It is important to check your tax code regularly to ensure that it is accurate and reflects your current circumstances. If you have any questions or concerns about your tax code, you can contact HMRC for assistance.