Understanding your tax code
Now that we are one month into the tax year, your tax code should have been updated. Here is everything you need to know about your tax code, and what it means.
What is my tax code?
Your tax code is shown on your payslip and is usually made up of numbers and letters. It represents the tax free-income you are expected to receive for that tax year.
For example, if your tax code is 1250L, this means that you receive £12,500 per year before paying a tax.
What do the letters mean?
The letters in your tax are specific to your own circumstances. A useful guide to what the letters mean can be found on the HMRC website here: https://www.gov.uk/tax-codes
How is my tax code calculated?
HMRC are responsible for calculating your tax code. The standard amount of employment income for the 2018/19 tax year that you can earn before paying tax is £12,500, however many tax codes may be impacted by items such as (but not limited to):
- Prior year over / under payments.
- Secondary employment.
- Marriage allowances.
What if my tax code is wrong?
If your tax code is wrong or you are having difficulty understanding your tax code, you will need to contact HMRC on 0300 200 3300. Make sure you have your national insurance number ready.
If you are a temporary worker for us, and would like some assistance, then contact your local branch where one of our consultants will be on hand.