M = The employee's partner has shared their Marriage Allowance with them.
N = The employee has shared their Marriage Allowance with their partner
T = The tax code includes additional calculations to work out the personal allowance amount. This code usually applies to those who earn more than £100,000.
0T = The employee has used up their personal allowance, according to HMRC, or the employee has no personal allowance. However, this may also be because they've not yet been assigned a tax code, usually if they've just started a job.
BR = The employee has more than one job, or also gets a pension, indicating all income from the employment with you is taxed at the basic rate with no personal allowance applied.
D0 = The same as the above, except that all income from employment with you is taxed at the higher rate with no personal allowance applied.
D1 = Likewise, this is the same as the above, except all income from employment with you is taxed at the additional rate with no personal allowance applied.
SD0 = This applies when an employee living in Scotland has more than one job, or also gets a pension, and indicates all income from the employment with you is taxed at the intermediate Scottish income tax rate with no personal allowance applied.
SD2 = As above, except that all income from the employment with you is taxed at the top rate of Scottish income tax with no personal allowance applied.
NT = No tax is paid on the employee's income.
W1 = An emergency tax code which indicates the pay for the week is taxed on the basis of ignoring the employee's cumulative tax paid to that point across the tax year. Rather, the employee is taxed as if they have their personal allowance available for that period, i.e. personal allowance divided by the 52 weeks of the year.
M1 = An emergency tax code which means the pay for the month is taxed on the basis of ignoring the employee's cumulative tax paid to that point across the tax year. Thus, the employee is taxed as if they have their personal allowance available for that period, i.e. personal allowance divided by the 12 months of the year.
X = An emergency tax code that means the tax paid by the employee is not being calculated on a cumulatively basis - it is not being calculated across the whole tax year. As a result, the employee is taxed as if they have their personal allowance available for that period – the personal allowance is divided by the 12 months of the year in the case of a monthly pay run.
C = Not a tax code per se, but indicates that the employee's income tax is calculated on a cumulative basis.
tax code explained
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Created on November 26, 2020
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Transcript
M = The employee's partner has shared their Marriage Allowance with them.
N = The employee has shared their Marriage Allowance with their partner
T = The tax code includes additional calculations to work out the personal allowance amount. This code usually applies to those who earn more than £100,000.
0T = The employee has used up their personal allowance, according to HMRC, or the employee has no personal allowance. However, this may also be because they've not yet been assigned a tax code, usually if they've just started a job.
BR = The employee has more than one job, or also gets a pension, indicating all income from the employment with you is taxed at the basic rate with no personal allowance applied.
D0 = The same as the above, except that all income from employment with you is taxed at the higher rate with no personal allowance applied.
D1 = Likewise, this is the same as the above, except all income from employment with you is taxed at the additional rate with no personal allowance applied.
SD0 = This applies when an employee living in Scotland has more than one job, or also gets a pension, and indicates all income from the employment with you is taxed at the intermediate Scottish income tax rate with no personal allowance applied.
SD2 = As above, except that all income from the employment with you is taxed at the top rate of Scottish income tax with no personal allowance applied.
NT = No tax is paid on the employee's income.
W1 = An emergency tax code which indicates the pay for the week is taxed on the basis of ignoring the employee's cumulative tax paid to that point across the tax year. Rather, the employee is taxed as if they have their personal allowance available for that period, i.e. personal allowance divided by the 52 weeks of the year.
M1 = An emergency tax code which means the pay for the month is taxed on the basis of ignoring the employee's cumulative tax paid to that point across the tax year. Thus, the employee is taxed as if they have their personal allowance available for that period, i.e. personal allowance divided by the 12 months of the year.
X = An emergency tax code that means the tax paid by the employee is not being calculated on a cumulatively basis - it is not being calculated across the whole tax year. As a result, the employee is taxed as if they have their personal allowance available for that period – the personal allowance is divided by the 12 months of the year in the case of a monthly pay run.
C = Not a tax code per se, but indicates that the employee's income tax is calculated on a cumulative basis.