HMRC tax codes explained
Last updated May 2022
Your tax code is an important piece of information whenever you’re dealing with HMRC. Its main use is to work out the Income Tax and National Insurance Contributions (NICs) you’ll pay each year. On top of that, your tax code will show any special circumstances that make a difference to your tax situation.
The most common tax code for people employed “on the books” (meaning they’re taxed through PAYE or the Pay As You Earn system) in 2022/23 is 1257L. If you’ve got more than one PAYE job, you’ll have more than one tax code, though. That can get a bit more complicated, as we’ll see below, because you might not get the full benefit of your tax-free Personal Allowance.
Want to know more about the letters in your tax code? Check out the list below.