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Tax Codes explained

 

BR - All income is taxed at the basic rate (currently 20%)

0T - All income is taxed at the appropriate rate with no personal allowance. This is used often where there is a 2nd job.

D0 - All income is taxed at the Higher Rate of tax (currently 40%). Often used for a 2nd job or pension.

DI - All income is taxed at the additional rate of tax (currently 50%). Often used for a 2nd job or pension.

NT - No tax is taken from income.

L - Basic Personal Allowance has been applied

P - Full personal allowance for those aged 65-74 applied

Y - Full personal allowance for those aged 75 or over applied

T - HMRC need to review the code

K - Total allowances are less than total deductions, effectively a negative code

 

Note: Notices of codings are no longer copied to your Tax Agent due to HMRC cost cutting measures so please ensure you provide your agent with a copy so that they can check that the correct code is being applied

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