Tax Code

Your tax code is used by your employer or pension provider to establish how much Income Tax should be deducted from your pay or pension to be sent to HMRC. In the 2023/2024 tax year, the most common tax code is 1257L. If this is not your tax code and you don’t know why, it may be that you’re on an emergency tax code and could likely be paying too much Income Tax. If you have reason to believe that you may be on the wrong tax code, contact HMRC via their website , and they will be best placed to advise you.

We’ve put together a helpful guide to explain what the letters in your tax code mean.

• L – You’re getting the standard tax-free Personal Allowance. This is the most common tax code
• M – 10% of your spouse’s Personal Allowance is assigned to you through Marriage Allowance
• N – 10% of your Personal Allowance is assigned to your spouse through Marriage Allowance
• S – You’re on the Scottish rate of Income Tax
• T – Your tax code includes other calculations
• Y – You are entitled to a higher Personal Allowance because you were born before 6th April 1938
• OT – Your Personal Allowance has been used up or you’ve recently started a new job
• BR – You’re getting the basic rate (20%)
• DO – You’re getting the higher rate (40%)
• D1 – You’re getting the additional rate (45%)
• NT – You’re getting the additional rate (45%)
• K – You have income that isn’t being taxed but is worth more than your Personal Allowance

For further advice about your tax code and Personal Allowance, contact HMRC.