Earnr AI, your new tax assistant, is here. Check it out now!
Stressed by tax?
Get Earnr Pro

Tax Code

[tæks kəʊd]



A Tax Code is given to every employee and is used by employers and pension providers to work out how much income tax should be deducted from pay and pension.

More detail:

A Tax Code is issued to every Employee by HMRC. This code is utilised by employers and pension providers to calculate how much Income Tax should be deducted from an individual's pay or pension.

A Tax Code is a series of letters and numbers. The letters indicate special circumstances that affect an individual's tax liability. For example, the letters BR in a Tax Code indicate that all income for this job or pension is taxed at the basic rate. It is usually used if the individual has more than one job or pension. The numbers in a Tax Code indicate the amount of Personal Allowance an individual is entitled to.

The most common Tax Code in the Tax Year 2023/24 is 1257L.

Tax Codes with W1, M1, or X at the end are emergency tax codes. These are used temporarily until HMRC have correct details about what Tax Code an individual should have.

Back to Taxionary

You might also like...

decorative image for a blog

Submit your 22/23 Tax Return Before January 31st

January 31st is the deadline for submitting 2022/23 tax returns. It's a good idea to complete your tax return ahead of this deadline to avoid mistakes and potential penalties. This article shows why its a good idea to submit your tax return early and how Earnr can help you if you are stuck.

Read more
decorative image for a blog

We asked Earnr AI why you should use Earnr…. here’s what it said…

We recently introduced our newest addition to the Earnr team; our AI chat bot, Earnr AI. In this article we put Earnr AI to the test and asked it why you should use Earnr as your tax companion, bookkeeping tool and tax return assistant. Read it's excellent response!

Read more
decorative image for a blog
December 20, 2023
Tax essentials

Why should you submit your tax return over the Christmas period?

The festive period is often thought of as the busiest time of the year with the run up to Christmas and New Year. Whilst this period can feel hectic at times, it can also be seen as the perfect time to complete your tax return. In this article we explain why this Christmas time is the best time to submit your 22/23 tax return.

Read more
Earnr logoDownload earnr