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Being given a T tax code isn’t necessarily bad news. However, it’s really important to understand what tax code T means, and how being being on it affects the tax you pay. So, what does a T tax code mean in real terms? Here’s everything you need to know.
Your tax code is a sequence of numbers and letters that tells your employer how your pay needs to be taxed. You get a tax code for each of your PAYE jobs, and they’re worth keeping an eye on. If one of the tax codes you’ve been given changes, it can make a big difference to your take-home pay over a year. You can read more about tax codes and their meanings on our page here .
The basic meaning of a T tax code is that your tax situation is more complicated than normal, and HMRC might need to get a little more information from you. There are actually quite a few reasons why this might be the case. For example:
In any of these cases, you could be given a T tax code, meaning that HMRC needs to review your situation to decide the correct code for you. This is why it’s so important to keep track of your tax code and to get it fixed if it’s wrong.
Here's what a T tax code might look like:
Like any other tax code, the numbers before the letter refer to your Personal Allowance—the amount of money you can earn in a year before you start to pay Income Tax. Multiply the number by 10 to see what your Personal Allowance actually comes to, in this case £12,570.
The letters after the number explain any particular circumstances affecting the tax you owe. The standard letter that most people get is an L, which just means that they qualify for the normal Personal Allowance. As explained above, the T tax code’s meaning is that your situation is different in some way, with special calculations involved or more information required.
Being on the wrong tax code can cause a lot of headaches, and getting it fixed fast is critical. Your T tax code means your situation is different from most people’s, or that HMRC doesn’t have all the details they need from you. T tax codes are generally temporary, meaning you can often get them changed by:
If you’re claiming your yearly tax refund with RIFT, we’ll take care of any tax code issues automatically as part of our service. If you ever find yourself with a tax code that looks wrong, our expert teams will get it fixed for you. You can read more about fixing incorrect tax codes here .
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