The exact code on a payslip from HMRC that signals if you’re owed cash back has been identified – and it could be HUNDREDS of pounds. The tax code on your payslip tells you how much you should be paying to HMRC each month.
You can check your tax code on your personal tax account online, or by looking at any payslip or via the HMRC app. You can also check it on a “Tax Code Notice” letter from HMRC if you have been sent one, and you’ll need a government website password and Gateway ID.
If you don’t have this, you can use your postcode, National Insurance details, as well as two from a valid UK passport, UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland), payslip from the last three months or a P60 from your employer for the last tax year or details of a tax credit claim if you have made one or details from a self assessment tax return (in the last two years) if you made one.
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You can also use information held on your credit record if you have one (such as loans, credit cards or mortgages). If you believe your tax code is wrong you should contact HMRC who will issue your employer with a revised tax code as required.
This can be done by phone – 0300 200 3300 – or online . Almost all employers will now be operating PAYE in Real Time. The most popular tax codes mean the following:
- L – you qualify for the standard tax-free Personal Allowance (£12,570 for the 2022/23 tax year)
- M – you have received 10% of your partner’s Personal Allowance
- N – you have transferred 10% of your Personal Allowance to your partner
- T – your tax code requires additional calculations to determine your Personal Allowance
- S – your tax code is based on current rates in Scotland
- C – your tax code is based on current rates in Wales
- Y – your Personal Allowance is higher because you were born before April 6, 1938
- NT – you don’t pay tax on this income
- 0T – your Personal Allowance has been used up, you don’t have a P45, or your new employer hasn’t been informed of your new tax code yet
- BR – this income is taxed at the basic rate (tax code BR is usually issued when you have a second job or pension)
- D0 – the income from this job is taxed at the higher rate
- D1 – this income is taxed at the additional rate
- M1 or W1 – your tax code refers to the amount earned during a particular week or month (non-cumulative)
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