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 our 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! Its 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! Alternativly, leave a comment below and we’ll do our best to help!

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Comments (102)

  • asuvini Reply

    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?

    Thanks.

    October 2, 2016 at 4:57 pm
  • April Reply

    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

    September 29, 2016 at 4:47 am
  • Susan wedge Reply

    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?

    September 28, 2016 at 9:06 am
  • luke Reply

    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**

    September 26, 2016 at 9:00 pm
  • Jason Reply

    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

    September 18, 2016 at 9:27 am

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