Understanding your Tax Code

Your tax code is made up of numbers and a letter. 1257L is the tax code currently used for most people who have one job or pension. The numbers in your tax code tell us, your employer, how much tax-free income you get in that tax year.

The letter in your tax code refers to your situation and how it affects your Personal Allowance. More about this can be found on the HMRC Tax Codes webpages.

Tax Code Changes

There are different reasons why HMRC may update your Tax Code. This could be, but not limited to:

* You start to get income from an additional job or pension
* You get taxable state benefits
* You claim Marriage Allowance
* You change jobs

HMRC will usually contact you to explain how they worked out your individual tax code if your tax code changes, but if they don’t, or you’re unsure why there has been a change, you should contact HMRC.

ICS Accounting are unable to assist with any Tax Code queries.

How To Contact HMRC

HMRC can be contacted via the Income Tax Helpline by calling 0300 200 3300. If you’re calling from outside the UK, please call +44 (0)135 535 9022.

You can also visit the Tax Code pages on their website by clicking here.