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Tax codes for 2015/16

The 2015/16 tax year begins on 6th April 2015 and for most employees, the new standard tax code will be 1060L. This post explains what this tax code means and what to do if you think you’re on the wrong tax code.

Update (05/04/16): This tax year has now ended! Check out our new guide for tax codes for 2016/17 

What does the 1060L tax code mean?

Your tax code tells you the amount you can earn in each tax year before paying tax. A 1060L tax code means you can earn up to £10,600 per year tax free, which is an increase of £600 from 2014/15. If you are paid monthly the first £833 won’t be taxed and if you are paid weekly you can earn up to £204 per week before being taxed.

How much tax will I save with the new tax code?

If you’re a basic rate taxpayer, a £600 increase in your personal allowance will save you £120 in tax per year.

Will I receive confirmation of my new tax code from HMRC?

You should receive a PAYE Coding Notice from HMRC shortly after the start of the new tax year. Your employer will also receive a P9 Tax Code Notice 2015/16 which will inform them of the new tax code to use from 6th April. You should check your first payslip after 6th April to ensure that the correct tax code has been applied. If your employer is using an incorrect tax code which results in you not paying enough tax, it will be you who will be liable to pay any additional tax at the end of the year!

What to do if your tax code isn’t 1060L

Although 1060L is the standard tax code, it doesn’t apply to everyone. Each tax code can differ based on individual circumstances. Below are some of the most common reasons why you may not have a standard tax code.

  • You have more than one job.
  • You have taxable benefits (such as health insurance or company car).
  • You have underpaid tax in previous years and HMRC are collecting it through a reduction in your personal allowance.
  • You are being emergency taxed.

If none of the above applies to you and your tax code isn’t 1060L, you should complete the online Coding Notice Query form on the HMRC website. You should receive a response within 15 days.

Will I automatically get a rebate for the previous tax year?

HMRC will usually perform an end of year reconciliation to ensure you have paid the right amount of tax. However this is not done for all taxpayers. For example, if you are entitled to claim specific tax reliefs (such as uniform tax allowances or business mileage), these are not usually provided automatically and need to be claimed.

At present, it is possible to claim tax relief for the last 4 tax years (but remember there are time limits for claiming back overpaid tax). If you are not sure what you can claim, you can use our tax refund calculator to get an estimate of any extra tax rebate you may be due.

I still don’t understand tax codes/tax rebates/allowances, can you help me?

We’d love to! It’s what we do. If you need any help understanding your tax position or to find out if you are overpaying tax, please contact us via email or call us on 01473 760359 for free advice! Alternatively, leave a comment below and we’ll do our best to help!

102 thoughts on “Tax codes for 2015/16”

  1. I have received a letter from HMRC today saying my tax code is 512T what does this mean?

    1. Sanjay Madhavji

      Hi Sarah, do you have more than one job? A tax code with T is an indicator that HMRC need to review your tax code periodically – it may be that they need more information before they can decide on the correct code. It is common to have this code where you have 2 jobs and HMRC have split your personal allowance between the 2.

  2. Hello i’ve been on the wrong tax code 500t since january of this year after finally getting my tax code changed to 1060l 6months later therefor am i entitled to a tax rebate an if so how do i go about getting it because the tax office are sh*t.

    1. Sanjay Madhavji

      Hi Chris, it is likely you will be due a rebate for being on the incorrect tax code (since you wont have received the correct perosnal allowance). For the current tax year, you should receive it back automatically in your pay. For the previous year, you will need to apply for a rebate. If you have no luck with the tax office, you can contact us and we can take care of it for you.

    1. Difficult to say – you would need to contact your payroll/HR department as it may be a mistake.

  3. Hi, I have had the tax code BR (basic rate) since April 2014 but this year it has changed to 512T. What does this mean? I work though an agency and only have 1 job so I don’t understand why I have this tax code

    1. You many have been on the BR tax code if HMRC didn’t advise your employer of the correct tax code. You will more than likely be able to claim a rebate for last year – please contact us if you need help with this. For the current year, it sounds like HMRC have reduced your tax code, perhaps because they think you have more than one job. You would need to contact them to rectify this. If you process the claim through us, then we would get the current tax code correct too.

    1. If you have been out of work for more than 4 weeks and are not claiming any taxable benefits (Jobseekers etc), then you can call HMRC to claim it back. Alternativly you can contact us and we can take care of it for you.

  4. hello

    i started a new job at the end of january the first payslip i recieved in febuary i was on tax code 100L, the next payslip in March i was on tax code 807L and then since April 1060L which i deem to now be correct.
    Can i claim any rebate for those two previous tax codes prior to April this year?

    1. It depends. We wouldn’t be able to say for sure without doing a review. There could be a genuine reason why your tax code was reduced (eg to collect underpaid tax) or, as is most often the case, it was a mistake. Please contact us if you require help claiming this back.

  5. Hi, my tax code has been 512T since April, I only have 1 job, why would I be on this code? Any advice would be gratefully received, thanks

    1. Tax code “T” means HMRC need to review your tax code. It oftens happens when you start a new job and HMRC haven’t received all the relevent paperwork from each employer (so they may think you have more than one job). Give them a call on 0300 200 3300 and let them know you only have one job and your tax code will be updated.

  6. Hello, I have just been given my new tax code 512t , this is different from the usual 1060 code . The only difference is I have had a company car for the past twelve months, is this a one off payment that I owe from last year 2014/2015 or is this monthly for 2015/2016. I have had no letter or e-mail but this means a 500 decrease each month, also can I give the company car back if this is the case? Thanks

    1. Hi Tony, a company car is a taxable benefit. HMRC recover tax on this by reducing the tax code. The “T” in your tax code means HMRC need to review it periodically to ensure they are collecting the right amount of tax.

  7. Hi, I will work in London for an English company from October the 1st 2015 to December the 31st 2015. That is, only three months. Then I will leave England. Am I entitled to claim taxes back? If so, am I entitled to claim all the taxes that the company will take from my salary or only some / part of them?

    Thanks in advance

    1. Thank you for your response. I will definitely earn more than 10,600£. I will earn around 20,000£ in total for the three months. This means around 6,500£ per month before tax.

      Am I still entitled to claim some taxes back?

    2. You will probably pay around £3470 in tax and should be able to claim back around £1590 of it once you finish (meaning the total tax paid will be £1880).

  8. I have had the wrong PAYE code on my payslip for some time (BRW1), and I’ve had a email from them saying this is due to change. My question is, will they refund the tax that I wrongly paid? If so, when will this be refunded, and if not, how do I get this refunded?

    Thanks in advance, this is my first time dealing with these kinds of things-.-

    1. Hi Kyle, the tax office would not normally email you about such matters. I would be careful when responding to it or clicking on any links within the email. Once your tax code is corrected, the overpaid tax will be returned in your next pay. Overpaid tax for the prior tax year is normally repaid via cheque.

  9. Hi ive just started work been out over 3 years, my tax code is 1060l which on my wage slip it says i pay no tax will that change or stay the same and always pay no tax? Thanks

    1. Hi Saj, it depend on what you earn, but 1060L is the standard tax code which means you can earn around £833 per month before you start paying tax.

  10. My tax code has changed from 1060L to 544L . I have worked with my company paye for two years. I’m wondering if:
    A) This is a mistake after a merger between my Co and another (new accounts team)
    B) it’s because I’m also a company director that receives dividends. Just filed my first return
    I’m keen to find out as its meant 400 less in my wages!!

    1. Hi – being a director won’t change your tax code. But if your income goes above £100k then your personal allowance starts eroding! You lose £1 for every £2 over £100k you earn. If your self assessment showed an underpayment, it may be being collected through your tax code. You should have received a tax coding notice which showed how your tax code was calculated. If you have an online account at HMRC, log in and you will be able to access a copy of the coding notice.

  11. Hi, my husband was receiving medical insurance for the family. the company paid for his portion and for the family (myself, children) portion it was deducted from his salary. When reporting to the HMRC should his employer report the full amount or just his portion to adjust his tax code?

    Also now he has handed in his notice but doesn’t need to work his notice but they will pay him. can we call HMRC to change the tax code?

    1. Hi Heena, the company will need to report the full value of the medical insurance to HMRC. This be included on his P11D. He will most likely be due a tax rebate as he won’t have used his full annual tax free allowance. This *should* returned at the end of the year, but we know that is not always the case. Once he has finished, you can manually claim it back using HMRC form P50.

  12. I’ve seen that vear the last 12 months my tax code has been either 500T or 361T instead of 1061L, I think this is incorrect. Am I due a rebate? I received nothing at end of financial year in April.

    1. Hi – a 500T or 361T tax code is usually issued if you have more than one job. If you don’t have more than one job then you most likely would have paid too much tax (depending on how much you earn). Please contact us for more advice.

  13. Hi I am on apprenticeship where I earn £4,632 a year…I also have a second part time job where I am getting taxed 20%. Does the 2nd job tax still apply with apprenticeships as I don’t earn more than £10,000 a year?

    1. Hi Rachel, you shouldn’t pay tax if you earn less than £10,600 per year so you will be able to claim it all back.

  14. Hi i have worked at the same place now for 5 years and my tax code has always been 1060L now all of sudden i have noticed i have started paying tax ( i earn the same every week ) and my tax code has changed to 500T ?? Is this right ??

    1. Unless you have taken on a second job or for some reason have underpaid tax, it sounds wrong. I would give HMRC a call on 0300 200 3300

  15. Hey my second job tax code is 500t my accountant says this is too high a code ? How can I correct it?

    1. Hi Stefanie, it would depend on why it is too high? I any case your accountant should be able to advise you how to change it.

  16. Hi, I’m new to being taxed so I kind of need everything spelling out for me. Your article was very helpful for me as I’ve always struggled trying to understand tax codes and how much I should pay etc.

    I get paid weekly and my tax code is 1060L but I’m paying £76 a week towards tax. Is this normal? Should I be paying less?
    My partner is on a lower wage than I am, same tax code, but he is coming home with the same amount of pay as I am and I can’t help but feel that this is something that should be getting looked into.

    Thank you,

    1. Hi Theresa, your tax code is the standard tax code so it doesn’t sound like there is an issue there. The amount of tax you pay would depend on your gross earnings (ie before tax). If you need more advise, you are welcome to send a payslip to us to check if it looks ok. You can contact us here http://www.taxrebates.co.uk/contact-us

    1. It means you can earn £10660 tax free each year, which is £60 more than the normal personal allowance. You most likely have a £60 allowance for uniform cleaning.

  17. My tax code is 1060l yet for some reason I pay some tax on my monthly wage not much but still pay and I’ve no where near earnt the 10600 yet???

    1. Your personal allowance is applied monthly to ensure you pay a consistent amount of tax. So once you earn over 883 in a given month, you will pay tax even if your cumulative earnings have not exceeded £10,600

  18. Good evening. I started a new full time job earlier this year, still keeping a part time job, I had from last year. From April this year, I have been paying to Tax Codes ‘BR’ & now 500L, on my full time job. Can’t HMRC, not see that this is my main job, so they don’t tax me as much as they are ? I have looked online, to see how much I should be taxed, and it is “LESS THAN HALF” what I’m paying now. I thought they would see what my ‘Main Source of Income was now, and work round that. I hope to sort it soon.

    1. Hi Chris, you would need to call them to inform them of your main job. They can then move your full personal allowance onto your main job and your part time job will remain as BR. If you earn under £10,600 across both jobs, then you can split your tax free allowance across the jobs.

  19. Hi there, just a quick question about how personal allowances work. If my annual earnings are just over my 10600 personal allowance, does the whole amount become taxable? Or just the earnings over the allowance?

  20. Hi,
    I left my full time job but still working with them as part time and had a new job. I called HMRC to inform them so they can use BR tax code on my second job and transfer my tax allowance to my new job. However, I am surprised that they are taxing me almost 50% on the BR rate for some reason. Hope you can help me understand why is this the case. Thank you.

    1. Hi April, it would be best to check with the payroll department for your part time job. A BR tax code should result in 20% tax.

  21. I worked a ton of overtime earning £500 more in one month than I usually would and I got taxed £400 leaving me with £100 more than my monthly salaried amount. Sanjay, could you please pass on the message that I would like everybody involved with taking tax to eat a bag of dicks.



    1. Hi Danny – something doesn’t sound right there. Earning £500 more than your usual salary would not result you paying an extra £400 tax – that is simply impossible as the highest rate of tax is 45% if you earn over £150,000.

  22. Hi Sanjay, I recently left a job where I worked for 6 months. My p45 says my tax code was 500T. I only had one job and no taxable benefits the entire time I was there. Am I right to assume that I was on the wrong code? Will i be likely due a tax rebate?

  23. Hi, I have recently rang to change my tax code as I have two jobs and was getting taxed too much on my main job. My tax code for my main job went from 500T to 1060L, however, I received a lower monthly income today, can you explain this?

    1. Hi Rachael, when you say lower monthly income, do you mean due to more tax paid or lower gross pay? It is best to check with your payroll department. 1060L from 500T should mean you pay less tax in that job as you have a higher tax free allowance. It will mean that your second job will be taxed at 20%

  24. Hi, I started work recently my first job, I don’t really understand these tax codes but my current tax code is 0t.
    I have been given the standard code now which is 1060L but is still awaiting for my boss to correct this.
    I have been told I will qualify for a tax rebate. Is this true?

    1. The 0T tax code means you would most likely have paid too much tax. When your tax code is updated to 1060L, you will receive the overpaid tax back in your wages if you overpaid.

  25. Hi, my tax codes for the past 4 years are: 2010 – 2011 (647L) 2011 – 2012 (747L) 2012 – 2013 (810L) 2013 – 2014 (1000L)

    Is there any reason why this keeps changing and I’m I due a rebate based on this information??

    Many thanks in advance!

  26. I’ve compared my tax code with few people i work with, I’ve been working for an agency for the last 5 years, my tax code changed from 1000L to 1006L after i filled in info on HMRC site, yet everybody else at work (also agency employees) have tax codes of 1060L, I’m married with one dependent. Any advice is to why the difference would be appreciated

    1. Hi John, it could be possible that you have underpaid tax in previous years which is being collected through a lower tax code. You should have received a tax coding notice from HMRC which would tell you how your tax code was calculated.

  27. Sanjay

    My overhaul income is under £10600 I have 3 company pension which is my only income one I have just started receiving, they have sent me my tax code notification April 15 to April 16 – showing tax codes as follows

    Pension 1 £6405 640L
    Pension 2 £3147 314T
    Pension 3 £1048 104T

    Is this correct bearing in mind my income is under £10600 pa I thought I would not being paying tax as my incomes under 10.6k


    1. Hi Ian, the codes look like they have been based on expected income from each pension. So providing the total is below £10,600 by the end of the tax year, you will not pay tax. If you do pay tax because the tax codes are incorrect, this will usually be refunded automatically.

  28. Hello Sanjay, I work for the NHS and also do extra ‘bank’ shifts which is paid by a separate payslip. Both my tax codes on my main employment and the bank shifts is 1060L CUMU. is this correct or should they be different and will there be any difference in the amount of tax paid. Main employment was 20k and bank 8k for 2014-2015.

    Thank you and best regards,.

    1. Hi Darren, you are most likely underpaying tax since your are receiving a tax free allowance on both jobs. Normally, your second job should be on tax code BR, since your main job utilises your full tax free allowance. I would give HMRC a call and tell them about both of your jobs – you will be able to make an election on which is your main job.

  29. Hello Sanjay,

    I have been working at my new job since Oct 2015, before this I was a student with a non-taxable stipend. I will be earning £2,600 a month. Does this tax code sound correct? As others I work with in the same situation are not being taxed at all

    1. Hi Ross, your tax code should be 1060L. You will most likely receive some rebate at the end of the year as you started working part-way through the year.

  30. I am currently in full-time employment but am about to relocate to another part of the UK and stop working. How do I get my tax code changed?

    1. Hi Jackie, if you are going to stop working then you don’t need to change your tax code. You may however be entitled to some tax back if you stopped working partway through the tax year.

  31. I working under 1060l tax code and i wanna know if i can claim myself the tax rebate or just HMRC it’s gonna refund me also if i have other expenses wich i didn’t claim to my employer can i claim to the end of financial year directly to hmrc?

    1. Hi, as with most things tax related, you can do it yourself if you know what you are eligible to claim for. If you need any help, please get in touch.

  32. Hi my tax code was Br as I have only recently started working. I rand hmrc and they sent me a new tax code which is 530L. I also have a weekend job, but have a different tax code for that one. I was told that I could earn up to 10600 a year before I being taxed. But I think I’m still being taxed. Just wondering if I’ve been given the wrong tax code?

    1. Sanjay Madhavji

      It sounds like your tax free allowance has been split across both jobs which is normal. At the end of the year, HMRC will check your total income and should in theory refund any overpaid tax (although we know it doesn’t always happen!)

    1. Sanjay Madhavji

      Yes it is, but it is easy for fraudsters to change the “from” address to make it appear as though its from HMRC. HMRC will never contact you via email asking for any personal details.

    1. Sanjay Madhavji

      Sound right, you have an extra £60 tax free allowance in your code, which is probably a flat rate expense for uniform laundry.

    1. Sanjay Madhavji

      The tax code changed from 1000L to 1060L for the 2015/16 tax year so this now means you have an extra £600 tax free allowance.

  33. hello,
    For previous year my Tax code BR, from April this year my tax code has changed into 758T. I started to pay a lot of tax. What my tax code 758T mean?

    Kind regards

    1. Sanjay Madhavji

      It means you receive a tax free allowance on that job of £7,580 which is lower than the normal amount. The “T” means HMRC still need to review your code. Usual reason for this code is that HMRC think you have more than 1 job.

  34. Hi,ive just discovered im on tax code 120t and earn less than 16 k a year surely im on wrong code even tax calculator saying im on wrong one could i be due rebate.

  35. Hi I have just been payed on Friday and my tax code has changed to k999 it was 1060l and they have taken a lot of money of me would you have any idea why been in the same job for 5 years never had a problem befor

    1. Sanjay Madhavji

      Hi Phil, K is a negative tax code. Not only are you not receiving a personal allowance, but they are also collecting additional tax from you. This is usually the case where you have an underpayment from a previous year or you are receiving taxable benefits from your employer.

  36. will i get a tax rebate on the tax taken off me when I cashed in my pension last year, about July I think

  37. Good Evening, i left my full time job 25/09/2015 my tax code at the time was 1060L. since starting my new full time job which i started on 8/02/2016 my tax code was 1060L for my first month and has now changed to 1100L. why has this code changed and am i entitled to any rebate?

    1. Sanjay Madhavji

      Hi, the new code code from April 2016 is 1100L (it was 1060L before that).

  38. Hi there, I would really appreciate if you could verify if my tax codes are correct. I have two jobs, one full time (psychiatric liaison nurse) earning on average 35k and another second job zero hour contract (overtime).

    My full time job’s tax code is 907L CUMUL
    My second job (overtime zero hour contract) is BR CUMUL

    Can you explain what they mean and if they have been correctly applied. I would very much appreciate it. Thank you very much and more power to you and your company.

    Kind Regards,

    1. Hi Daniel, it is very common for your second job to be on tax code BR – this simply means all earnings are taxed at 20% (as your tax-free personal allowance is used in your main job).
      As far as the 907L code goes, it is a little lower than the normal tax code. The most common reason for this is underpaid tax in a prior year. HMRC should have sent you a tax coding notice which will explain how that arrived at that figure. Hope that helps.

  39. Hello,

    I have a complicated situation!

    I worked for my local authority for a number of years and left on 07.08.15 to work for a charity, starting on 10.08.15. I worked for the charity until 01.01.16, when I left to return to university, receiving a non-taxable bursary.

    However, the Local Authority continued to pay me after I left and as such, did not issue a P45. I have since paid the Local Authority the full overpayment and the matter is settled.

    The other students on my course have all received tax refunds as the course started at the beginning of January 2016 and they too left their respective jobs. However, HMRC say that I owe them £235. The figures HMRC have sent me are;

    Local authority (job until 07.08.15, tax code 1059L)

    £10,093 with £605.40 tax paid

    Charity (job from 10.08.15 – 01.01.16, tax code 1059LX)

    £12,144 with £1487.20 tax paid

    (1 day additional pay from staffing a local election for LA, tax code BR)

    £163 with tax paid £32.60

    I am concerned that due to lack of P45 from Local Authority (and it looking like I earned twice as much as I was – due to the overpayment) that the tax is incorrect. Also, I am confused regarding fellow students receiving refunds, yet I am not only not due a refund, but owe HMRC.

    Any advice or guidance is much appreciated!!

    Kind regards,


  40. Im currently in the procces of applying for a second job and want know if i will get BR tax code once i get my 2nd job i earn less than 10,000 a year im not a tax payer badically is the 2nd im applying for entitled to tax me with BR code??

  41. Hi

    My lease car through work has recently ended (Jul 16) which was taking my Tax Code down to 666L due to the Benefit in Kind tax. How long do I have to wait until it is put back up to 1060L as it should be? Will I get a tax rebate for those months where I have not had the car but the tax code is still 666L?

    Do I need to speak to HMRC myself or let my company payroll sort out the notification of the lease ending?



  42. Hi my income last year was high enough for me to loose my tax free allowance (over 122k), however this year my income has dropped to and I know I won’t reach anywhere near the previous years earnings. That said being on a K tax code means I know I am currently paying way too much tax. Can I counteract this now or do I have to wait until the tax year has ended (April 17)

    Also would HMRC automatically issue a tax rebate is I do nothing?

  43. 1060L my tax code grom the second job….what does it mean??im paid hourly and mixed hours and salary.one job pays by month and the second o e by week..which employer should be paying extra tax on me??im new in this and started a second job cause by hour aint getting enough….is it worth it??:when shoul i know that im being taxed correctly?should i notify my first employer that i have a second job??in how much earning im i being taxed??on the first payslip from the second job tax payments writes zero on the code 1060L….should i be worried??

  44. Hi my payslip does not display a tax code.
    How can I find out what my current tax code is just to be sure it’s correct because I think I may be being emergency taxed

  45. hi there was going through old paperwork and found an 2015/16 tax paper and is says my employer but tax code seems abit weird as its got 288T, just wondering if i was on wrong tax code ,, only other problem is i never recieved payslips from employer but was paying a fair bit in tax , can i claim money back or was i conned by my employer?? if so have i got a claim withe them , where do i stand??
    **no longer work for this employer but just want advice**

  46. I started a new job on the 6th of September, which offered more hours than my previous job. I’ve been kept on as a bank staff. My quirey is how much tax I had paid this month on the new job. I had paid £158.40 on a monthly pay of £792. I’m not sure what I will get paid for the bank work I’ve done this month as I’ve about 33 hours on the month. Not sure if the company still owe me the last week from last month. Where do I go from here?

  47. Hello, I have recently started a second job, and tax code is BR, which I understand is meant to be taxed 20 percent, but my payslip this week it’s 50 percent tax, was wondering is that right?? Thanks

  48. Hi,
    I worked in UK from Nov 2014-Nov 2015.
    When leaving the country my tax code was 1060 L.
    I have submitted my P45 and P80 by post.
    When will I receive my tax return back since I have left the country?


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