Tax Codes

Michael O'Connor

🚨 Understanding Your Tax Code: Why It Matters! 🚨

Your tax code affects how much tax is taken from your pay! Here’s a simple guide:

💡 Basic Personal Allowance

  • £12,570 for the current and next tax year.
  • Standard Tax Code: S1257L (most common for a Scottish Taxpayer).

💡 Common Letters in Tax Codes

  • L: Standard allowance.
  • M: Received Marriage Allowance.
  • N: Transferred Marriage Allowance.
  • T: Special calculations needed.

💡 Special Situations

  • Emergency Codes: W1 or M1 (used without a P45, based on current pay period).
  • K Codes: Deductions exceed allowance (can’t deduct more than half of pre-tax pay).

🔍 Why It’s Important Check your tax code to ensure correct deductions. Questions? Ask your employer or HMRC.

Stay informed to avoid tax issues! 💼📊