Chichester Bookkeeper

Call : 01243 201 401
Email :
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Letter

HMRC definition

L You’re entitled to the basic tax-free Personal Allowance
P You were born between 6 April 1938 and 5 April 1948 and entitled to your full tax-free Personal Allowance
Y You were born before 6 April 1938 or over and entitled to your full tax-free Personal Allowance
T Your tax code includes other calculations to work out your Personal Allowance (eg it’s been reduced because your income is over specific limits)
0T Your Personal Allowance has been used up or you’ve started a new job and don’t have a form P45 or you didn’t give your new employer the details they need to give you a tax code
BR All your income from this job or pension is taxed at the 20% basic rate (usually used if you’ve got more than 1 job or pension or when you start your first job and your employer is waiting for a tax code)
D0 All your income from this job or pension is taxed at the 40% higher rate (usually used if you’ve got more than 1 job or pension)
D1 All your income from this job or pension is taxed at the 45% additional rate (usually used if you’ve got more than 1 job or pension)
NT You’re not paying any tax on this income

 

and what are K Codes

If your tax code has a ‘K’ at the beginning it means that you have income that isn’t being taxed another way and it’s worth more than your tax-free allowance.

Example - 

  • paying tax you owe from a previous year through your wages or pension
  • getting State benefits that you need to pay tax on (like the State Pension)
  • getting benefits from work that you must pay tax on (like a company car or health insurance)

Employers or pension providers take the tax due on the income that hasn’t been taxed from your wages or pension - even if another organisation is paying the untaxed income to you.

Employers and pension providers can’t take more than half your pre-tax wages or pension when using a K tax code.

 

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B4Bookkeeping Ltd

Tel : 01243 201 401

  1 Lincoln House, Chichester Fields, Tangmere, Chichester, West Sussex, PO20 2FS
Company Reg Number : 9151684. VAT Reg Number: 192 380 988. MLR Reg : 12847995

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