These are all the tax codes used by HMRC - and what they mean

This is everything you need to know about the tax codes on your payslip, and what they mean.

UK tax codes can seem complicated, but are actually fairly easy to get the hang of.

Everyone’s tax code contains letters and numbers, which are used by employers and pension providers.

The specific numbers and letters in your tax code indicate:

How much of your income is tax freeHow much tax you pay above the Personal AllowanceWhether there are any other circumstances that need to be taken into account

Here is a breakdown of what each part of your tax code means.

What the numbers mean

The numbers in the codes tell your employer or pension provider how much tax free income you get in each tax year.

For the vast majority of people who have one job or pension, the numbers in their tax code will be ‘1250’, reflecting the current tax-free Personal Allowance of £12,500.

What the letters mean

The letters in the codes refer to your employment situation, and how much tax you are due to pay. It gives employers the information they need to take the right amount of tax from your pay slip each month.

The letters used in your tax code can differ depending on what part of the UK you live in.

Standard tax code letters

L - This code entitles you to the standard tax-free Personal Allowance

M - This code refers to the Marriage Allowance, and means that you’ve received a transfer of 10 per cent of your partner’s Personal Allowance

N - This is another Marriage Allowance code, and means that you’ve transferred 10 per cent of your Personal Allowance to your partner

T - This signals that your tax code includes other calculations needed to work out your Personal Allowance

0T - This means your Personal Allowance has been fully used, or that your new employer doesn't have the details they need to give you a tax code

BR - This means that all the income from this job or pension is taxed at the basic rate

D0 - All your income from this job or pension is taxed at the higher rate

D1 - All your income from this job or pension is taxed at the additional rate

NT - This income is not taxed

Tax code letters used in Scotland

S - Your income or pension is taxed using the rates in Scotland

S0T - For Scotland, this means your Personal Allowance has been fully used, or that your new employer doesn't have the details they need to give you a tax code

SBR - All your income from this job or pension is taxed at the basic rate in Scotland

SD0 - All your income from this job or pension is taxed at the intermediate rate in Scotland