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What is a tax code?

A tax code is usually made up of one letter and several numbers, for example: 117L or K497.

If your tax code is a number followed by a letter

• if you multiply the number in your tax code by 10, you'll get the total amount of income you can earn in a year before paying tax
• the letter shows how the number should be adjusted following any changes to allowances announced by the Chancellor - common tax code letters are explained below

Common tax code letters and what they mean

• How tax codes are worked out

Other tax codes

If your tax code has two letters but no number, or is the letter 'D' followed by a zero, it normally indicates that you have two or more sources of income and that all of your allowances have been applied to the tax code and income from your main job.

If you have two jobs, it is likely that all of your second income will be taxed at the basic or higher rate - depending on how much you earn. This is because all of your allowances will have been used against the income from your main job.

Emergency tax code

Your employer will use an emergency tax code:

• when you start a new job and your pay is above the PAYE threshold
• if you don't give your employer a P45 when starting a new job
• if you declare on a P46 that this is your only or main job
• when your employer has not received a tax code notice

An emergency tax code is also used in certain special cases, for example if you give your employer a P45 after 24 May but it applies to a previous year.

If you have paid too much tax under this temporary code, you will get a refund.

• PAYE forms: P45, P46, P60, P11D

Where to find your tax code

If you're employed or between jobs

Your tax code is written on your P45 (given to you by your employer when you stop working for them). This is why it's very important to give this to your new employer when you change jobs.

If you've lost your P45 and want to find out your tax code contact your Tax Office and give them your National Insurance number and tax reference number.

• Find your local tax office (opens new window)

If you're starting your first job

If you're starting your first job and don't have a P45, your employer will give you a P46 to fill in and sign. Your employer will allocate a tax code and work out the tax due. HMRC will process your P46 and, where necessary, revise your tax code.

If you've paid too much tax, your employer will make the necessary repayment. (If the tax year has ended before this is worked out, then HMRC will make the repayment.) If you haven't paid enough tax your tax code can be amended to collect the underpaid tax.

If you get a company or personal pension

You'll find your tax code on your 'notice of coding' sent to you by your Tax Office after the start of each tax year (and at other times if your tax code changes). You'll also find your tax code on notices and payslips from you pension provider.

Changes that might affect your tax code

You must keep HMRC informed of any change in your circumstances, for example if:

• you get married, form a civil partnership or separate and either of you were born before 6 April 1935
• you start to receive a second income
• the amount of untaxed income you get increases or reduces

If you do not do this you could end up paying the wrong amount of tax.

If HMRC changes your tax code, you should receive a 'notice of coding' from your Tax Office. Keep all notice of coding letters for reference in case you have any questions or need to check you are paying the right level of tax.

• Change of circumstances: letting HM Revenue and Customs know
• More about married couple's allowance (opens new window)
• More about civil partnerships (opens new window)

More useful links

• How tax codes are worked out
• What to do if your tax code is wrong
• Tax on company cars and other benefits
• Working and paying tax
• Self Assessment - your tax return
• How your pension income is taxed