How to check if your tax code is correct – you could receive thousands of dollars from HMRC | Personal finance | Finance

The figures represent the amount you earn tax free, i.e. the personal allowance set at £12,570.

The letters relate to a taxpayer’s situation and how it affects the personal allowance. Tax codes begin with an “S” in Scotland and a “C” in Wales.

The following letters in a tax code all mean different things:

L – Basic personal allowance for a person born after April 5, 1948

0T – No personal abatement

BR – All income from this source is taxed at the basic rate

DO – All income from this source is taxed at the highest rate

D1 – All income from this source is taxed at the additional rate

K – Total deductions exceed their allowances

M – Marriage allowance receiving 10% of the personal allowance of their spouse or civil partner

N – Marriage Allowance providing 10% of their unused personal allowance to their spouse or civil partner

NT – No tax is due on this income

C – Paying income tax in Wales

S – Pay the Scottish rate of income tax in Scotland

T – The tax office should review the tax code or keep personal data confidential

W1 or M1 – Emergency tax codes for the first week or first month depending on when a person is paid.

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