How to check if your tax code is correct – you could be owed thousands from HMRC

The numbers represent how much you earn tax free, which is just the personal allowance that is set as £12,570.

The letters relate to a taxpayer’s situation and how it alters the personal allowance. Tax codes start with an “S” in Scotland and a “C” in Wales.

The following letters in a tax code all signify different things:

L – Basic personal allowance for someone born after April 5, 1948

0T – No personal allowance

BR – All income from this source is taxed at the basic rate

DO – All income from this source is taxed at the higher rate

D1 – All income from this source is taxed at the additional rate

K – Total deductions exceed their allowances

M – Marriage Allowance receiving 10 percent of their spouse or civil partners’ personal allowance

N – Marriage Allowance providing 10 percent of their unused personal allowance to their spouse or civil partner

NT – No tax is due on this income

C – Paying income tax in Wales

S – Paying Scottish rate of Income Tax in Scotland

T – Tax office needs to review the tax code or to keep personal details confidential

W1 or M1 – Emergency tax codes for week one or month one depending on when a person gets paid.

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