![]() ![]() ![]() If you have no other income, you can earn up to this amount without having to pay any tax. This is currently £12,570 per year for the 2023/2024 tax year. Most people who pay tax in the UK are entitled to a personal allowance. The numbers in a tax code represent the tax-free earnings you are entitled to in a particular pay period. On a “tax code notice” letter from HMRC if you get oneĪ tax code is a combination of numbers and letters.A dedicated page on the gov.uk website – you’ll need to sign in to or register for a government gateway ID.P60 – your annual tax review from your employer.P45 – the form you get from your employer when you leave your job.There are a number of places that you can find your tax code: It is your responsibility, not your employer, to pay back any money you owe to HMRC. If you’re on the wrong tax code, you could be paying too little or too much tax. You will not have a tax code if you are fully self-employed because all your income is taxed through self-assessment. Part-time and full-time workers, plus those who receive a private pension will therefore have a tax code. PAYE is simply a way for HMRC to collect your income tax and national insurance directly from your pay as you go along, rather than through an annual tax return that you sort out yourself. ![]() HMRC issues a tax code to everyone on the PAYE (pay as you earn) system. Your tax code tells your employer or pension provider how much to take in income tax from your wages or pension. Read more: Use our income tax calculator to work out your take-home pay. Will get a tax refund if my code is wrong?.It’s important to check because being on the wrong tax code could mean you are owed money or owe money to HMRC. You may be on the wrong tax code for a number of reasons. Your tax code is a simple series of numbers and letters which your employer or pension provider use to work out how much income tax to take from your wages or pension. We explain how to check your UK tax code and what the different tax codes mean. We do not promote or encourage any other products such as contract for difference, spread betting, cryptocurrencies or forex. Where we promote an affiliate partner that provides investment products, our promotion is limited to that of their listed stocks & shares investment platform. ![]()
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