Tax codes for 2016/17


6th April 2016 marks the start of the new tax year and for most employees, the new tax code will be 1100L which should mean a welcome increase in take-home pay.

Tax code for 2016/17

For most UK employees, the standard tax code for the 2016/17 tax year will be 1100L. This tax code tells your employer that you are entitled to earn £11,000 per year before you are required pay tax.

Tax free personal allowance for 2016/17

Almost everyone living in the UK is entitled to a tax free personal allowance. This allowance allows you to earn up to a certain limit without having to pay any tax.

For 2016/17, the standard personal allowance is £11,000. This means that if you receive income from a job or pension, the first £11,000 you are paid will be tax free.

It is important to understand that your tax free allowance is usually split evenly over the year (i.e. rather than waiting until you exceed your personal allowance). The tax system is designed this way to ensure you pay a consistent amount of tax each pay period.

Pay frequency Tax free allowance
Weekly £211.54
Fortnightly £423.08
Monthly £916.67

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

HMRC normally send out a PAYE coding notice when your tax code changes during the year. They will not normally send you this notice if you are on the standard tax code at the start of a tax year.

Your employer’s payroll department will automatically update your code to the standard code unless told otherwise by HMRC.

What if my tax code is not 1100L?

A tax code is based on your individual circumstances and may not be 1100L. If you are not on a standard tax code, HMRC will usually send you a PAYE Coding notice shortly before the end of the tax year to explain how they calculated your new tax code.

Common reason why your tax code may not be 1100L:

  • You have more than one job (so your personal allowance is split across each job).
  • You have a underpayment from a previous year which is being collected through a reduced personal allowance.
  • You receive company benefits from your employer (such as medical insurance or company car).

If you believe your new tax code is wrong, you can fill in the following form to query it with HMRC https://online.hmrc.gov.uk/shortforms/form/P2

Claiming a tax rebate for previous year

Whilst HMRC stipulate that it is the taxpayers responsibility to ensure they are on the right tax code, they will normally perform an end of year reconciliation to ensure you have paid the right amount of tax. Any overpaid tax is normally refunded automatically.

However, the system is not 100% accurate as it relies on HMRC having the correct information. In some instances, it may be necessary to initiate a tax rebate claim.

For example you may be entitled to a rebate for previous years because you have not claimed all your additional tax free allowances, such as laundry allowance, mileage allowance and the cost of professional fees and subscriptions – these can only be awarded by making a claim. You could find yourself being owed £100′s back!

You can use our free tax rebate calculator to see if you are entitled to claim a rebate for previous years. Over the past 2 years, we have found over half tax codes we have reviewed have been incorrect and resulted in a repayment for the client!

Need help?

Leave a comment below and our expert tax team will do their best to help!

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Comments (63)

  • Cheryl Boyce Reply

    I retired on a full police pension in 2014. My pensionable pay is £37,000 pa. My tax code was 1100L in April this year.
    I then started a part time job working 15 hours per week with the NHS on a salary of £19,000 pa pro rata. Since starting this role my tax code is BR Cumul. My basic pay is £640.57 and I pay £147.80 in tax which seems very high.
    I finish this role in November and revert back to my police pension.
    Will I be due any tax back? I really appreciate your help.
    Many Thanks

    Cheryl

    October 13, 2016 at 11:30 am
    • AG

      Good luck with your 2nd income on top of a Police Pension. I left in 2010 and went into 2nd employment on top of my pension and have had problems with HMRC and tax ever since. At one point I had to employ a Tax adviser even though I only had a set pension and a set 2nd income, she suggested the Tax employee on the end of the phone is just call center staff and simply punches numbers into a computer. I left my last role in 2015 and have only had my Pension since then. I’ve just realized today that the old Car Benefit and Medical Insurance Benefit from last job in 2015 has been transferred by HMRC to my Police Commissioner Pension Scheme and is shown on my Tax Calculation for 2016 – 2017 which goes against me, and clearly I never got those benefits from the Police Pension. I had a difficult phone call with an adviser at HMRC to resolve it, she removed the benefits from my Police Pension but changed my Tax codes again and I’ve just realized it seems she got this wrong so I will have to call back.

      October 19, 2016 at 1:43 pm
    • A Cynic

      Given that your pension and pt salary comes entirely from the taxpayer I think you’ve got a bit of a nerve wanting any back

      November 30, 2016 at 12:46 am
  • David White Reply

    Hi there I have money in Capital Trade Bank and I would like to transfer it to Australia but the bank is asking for a tax code were and how do I get one as I live in Australia

    October 13, 2016 at 1:01 am
  • Jyotee Reply

    I work part time doing 19 hrs a week earning around £620 a month my tax code is 1106L is that correct

    October 9, 2016 at 7:48 pm
  • Claire Kershaw Reply

    What is the amount I can earn before paying Tax on the code 1106L? I phoned and they said £4896 I’ve now exceeded that but I’m still not paying I’m worried and confused .Many Thanks

    October 8, 2016 at 11:20 am
  • lisii Reply

    what does the tax code S271T mean

    September 29, 2016 at 3:33 pm
  • denise lyall Reply

    i gave my husband some of my tax allowance for the year 2015 to 2016. he has not recieved his rebate yet. friends are saying they have theirs. he does not need to pay tax this year as his income is too low.

    September 21, 2016 at 6:47 pm
  • John Edward Bonning Reply

    I have just received (dated 15/09/16) an amended tax form for 2016/17 which shows my tax codes as being altered from 690T to 580TX with no explanation whatever.
    I had previously claimed a transfer of allowance from my wife’s unpaid tax allowances but there is no mention of this on the second form. Please explain. John Bonning
    PLEASE NOTE ALTERATION INCODE NUMBERS> SORRY!

    September 21, 2016 at 12:59 pm
  • John Edward Bonning Reply

    I have just received (dated 15/09/16) an amended tax form for 2016/17 which shows my tax codes as being altered from 690T to 680TX with no explanation whatever.
    I had previously claimed a transfer of allowance from my wife’s unpaid tax allowances but there is no mention of this on the second form. Please explain. John Bonning

    September 21, 2016 at 12:54 pm
  • Sheila Reply

    What OTtax Means, Italie semés i m paying too Much tax with this code

    September 19, 2016 at 12:14 pm
  • F. Sneade Reply

    Earlier this year I applied to claim part of my wife unused allowance. This was granted in May and noted on the tax coding advice. Suddenly I have received another advice which gives me a different code and tells me that I owe HMRC almost £100 because I have been paying too little tax. On this recent advice there is no mention of my claim on my wife’s allowance. Has this policy of being able to claim from my wife been discontinued?

    September 17, 2016 at 4:24 pm
  • Leo Reply

    My tax code says 130T can you tell me what this means?

    September 17, 2016 at 2:33 pm
  • Vicki Reply

    Hi!

    I have been taxed (65%) on my arrears by my employer but when I have contacted Hmrc they have not received this tax. My P60 states no tax was taken from that current tax year,when I look at my payslip it states tax has been taken…I contact Hmrc and they inform me different.

    My current employer estimates/calculates what I earn for the year, but I don’t receive that amount for the whole tax year. I have contacted hmrc regarding this and they informed me that the employer calculates and gives them the annual income calculations. Even though when I calculated previous years, I get paid less by a couple of thousands of pounds.

    The employer informed me that Hmrc calculate what you earn for the year and the following year they add a 40-60% on top of your annual income.

    I have two jobs, the above issues I have are with my term time position (36 wks). I have been at the term time job for 3yrs. Other job, 1 year.

    September 17, 2016 at 2:44 am
  • James Reply

    Hi can you help me with some information please.I started a new job in July and was on a tax code 0t/1 will I get the extra tax I’ve paid back if so how long after giving my employer my new tax code of 1100l thanks

    September 16, 2016 at 5:53 pm
  • KK Reply

    Though my tax code is 1100l I am paying tax. Why?

    September 15, 2016 at 12:29 am
  • colin mcilwrath Reply

    hi my tax code has changed from 1060 to 1100 and its now September and my employer hasnt changed it and im wondering how much im owed back and how much more money should i get a week now in my weekly wages….thanks colin

    September 12, 2016 at 8:30 am
  • Susan Reply

    My tax code has changed from 1100L to 1108L my monthly pay is 1550 what tax will I pay

    September 12, 2016 at 3:54 am
  • Karen Sadler Reply

    My tax code changed from 1100L in June to 1015L M1 in July and August, which I understand is an emergency tax code. I received a bonus of £500 (before tax) and a salary increase of 2% effective 1st July, so assume it has something to do with that but can you please explain if and when it will revert to a standard code? I have been stung by this before and ended up owing lots of tax because my code was never readjusted after an emergency code was allocated. Thank you.

    September 5, 2016 at 5:17 pm
    • Lorraine

      M1 is an emergency tax coding not taking into account any previous tax paid this year, tax is worked out 11000 per year and a percentage of the accumulated fee is worked out so over a year you ear 11000 before tax and the remainder is the taxed amount. You would need to contact the inland rev and discuss why you’ve been put on a week 1 month 1 tax code

      September 16, 2016 at 6:08 pm
  • Debbie thomas Reply

    I can’t understand why I am still paying tax. I finished work in March. My total income per annum is £8,000 so well under the £11.000 tax free. My tax code was wrong when I questioned it and I was given a new tax code. But, I am still paying £20.00 a month and have been told I have to pay tax on my personal pension, which is included in the £8’000. I paid a married woman’s stamp, so only receive £60 per week state pension. Can you advice please

    September 2, 2016 at 6:38 pm
  • Mark talbot Reply

    My tax code was 1099l I’ve just noticed on my pay slip it is now 1105l but I can’t find a code like this on the hmrc Web site am I paying more tax now

    September 2, 2016 at 5:44 am
  • Jack cavanagh Reply

    I have recently started my first job, I’m 17 and on my payslip I’m getting taxed almost £70 and my tax code says Ot. Just wondered if there was an easy way to resolve the matter as it’s quite a lot of money to me -.-

    September 1, 2016 at 9:08 pm
  • Sven Reply

    My taxcode changed to k31 M1 last month. At the sametime my tax free allowance became 0. Is this a normal way to deduct taxes you own from the previous year and will the tax free allowance go back to the normal number e.g. 11,000?

    September 1, 2016 at 8:55 am
  • Hilary Brunt Reply

    Hi , I retired on 8/7/16 and have just received my first monthly pension and advice slip. It says my tax code is 1034L but my pension is below the tax threshold. Is this because they are taking into account my salary prior to retirement!

    August 31, 2016 at 8:39 pm
  • Hermaths Reply

    Hello. Thanks for these informations.

    I am a part time worker and I just received my pay for august. I noticed that my net has decreased by £400 because of a change in tax code (from 1100L to K80). I have no idea of what that means and why it has changed. Can you help me to understand and it is possible to return on the previous tax code?

    Cheers

    August 30, 2016 at 3:22 am
    • Sanjay Madhavji
      Amit Soni

      Hi, K80 is a “negative” tax code. It means that the tax being deducted from your wages is not enough to cover the amount of tax you owe for the year. It is very common if you have work-related benefits (such as a company car). The best thing to do is have a look at your Tax Coding Notice, which should have been sent to you when the tax code changed. This will show you how your tax code was calculated.

      August 30, 2016 at 6:23 pm
  • Ofelia Reply

    I work as a nurse. I do bank or extra shifts on the same trust that I work with. My tax code previously was BR but it was changed to DO for almost 3 years now. I don’t know if this is right.

    August 29, 2016 at 9:09 am
    • Sanjay Madhavji
      Amit Soni

      Hi. D0 tax code means your earnings will be taxed at 40% (higher rate). This will be correct if your income in your main job is more than £43k (before tax). If it is below £43k, then you are paying too much tax and should be able to claim it back.

      August 30, 2016 at 6:27 pm
  • Kelly. Reply

    My tax code since 04/2016 has been BR CUMUL. This month it was changed to 1098L CUMU and I received a bunch of refunded tax money. Does this sound correct or do I need to query it?

    Cheers.

    August 26, 2016 at 4:58 pm
    • Sanjay Madhavji
      Amit Soni

      It is probably correct. BR means you pay 20% tax on all earnings. This is an emergency tax code. Once HMRC issues the correct tax code, the year-to-date earnings and tax paid are taken into consideration (this is what the CUMUL means = cumulative) and any overpaid tax is included in your wages.

      August 30, 2016 at 6:30 pm
  • Sushil Reply

    Hi Amit,

    I have two jobs (part time), I earn less than £11000.00 per year. I have been allocated BR code in my 2nd job. Do I still pay tax if my earnings are less than £11000.00?

    August 10, 2016 at 11:00 pm
    • Sanjay Madhavji
      Sanjay Madhavji

      Hi Sushil, it is common for a second job to be on tax code BR. If, by the end of the tax year you have earned less than £11,000 you should be able to claim back overpaid tax.

      December 14, 2016 at 9:58 pm
  • Alison Reply

    My husband has underpaid tax of £556 from a couple of years ago, his tax code has been changed to recover this but has changed to 822L which seems very low, when he got paid last Friday ( he gets paid fort nightly) he had lost well over £100 please could you explain how it works

    June 6, 2016 at 11:12 am
    • Sanjay Madhavji
      Amit Soni

      Hi Alison, In order to collect underpaid tax of £556, his personal allowance would need to reduce by £2780 (this will ensure he would pays 20% x £2780 more tax in the year = £556). The normal tax code gives you £11,000 tax free. So £11000 – £2780 = £8220 = tax code 822L. He’ll be paying an extra £21.38 in tax each fortnight.

      June 6, 2016 at 4:27 pm
  • nicanor bleij Reply

    would like to ask about a tax code of 1019L what does it mean?

    June 5, 2016 at 9:07 pm
    • Sanjay Madhavji
      Amit Soni

      Tax code 1019L means your personal allowance is £10,190 per year. This is a little lower than the standard code and could be due to having an underpayment is previous years or could be to account for any work related benefits (medical insurance etc)

      June 5, 2016 at 10:40 pm
  • Eddie Reply

    My tax code this month is BR whereas last month it was 1100L, this is my only job I started in April 2016 and didn’t pay any tax for last month (1st pay) could they be clawing back the unpaid tax for last month by changing the code?

    June 5, 2016 at 7:44 pm
    • Sanjay Madhavji
      Amit Soni

      Underpaid tax would not be clawed back by switching you to a BR tax code. BR means you are not receiving any personal allowance at all. I would recommend calling calling HMRC to check your tax code as your employer could have made a mistake.

      June 5, 2016 at 10:42 pm
  • Jo Reply

    I started my new job in Sept 2015 and was given Tax Code 275T (emergency)??
    My annual salary is £5269.80 but i was taxed £424.20 between Sept 2015 and March 2016.

    My tax code has now been changed and i am no longer paying tax but have not yet received a P60 or a rebate. How long should i wait?

    May 31, 2016 at 3:45 pm
    • Sanjay Madhavji
      Amit Soni

      275T is not an emergency code as such, but it means HMRC need more information before they can change it. The most common scenario is that you start a new job before your previous employer notifies HMRC that you have left (they normally do this on your payday). So HMRC now think you have 2 jobs. Refunds are normally issued around June / July, but we are aware of many cases where is has not been automatic so you may need to chase it up.

      June 5, 2016 at 10:48 pm
  • Marie Reply

    My tax code for 22/5/16 is S1106L and for March it was1066L what’s the S1106L stand for please.?

    May 31, 2016 at 1:52 pm
    • Sanjay Madhavji
      Amit Soni

      Hi Marie, the “S” at the start of the tax code means you pay the Scottish Rate of Income Tax (SRIT), which at the moment is the same rate as UK taxpayers (usually 20%). You can earn £11,060 tax free in the year. You also have an extra £60 tax free allowance which is most likely for uniform cleaning.

      June 6, 2016 at 4:38 pm
  • Margaret Jennings Reply

    My total income (including State Pension) is £5000 below the threshold and I have never paid tax until last September when a BR tax code was applied to a small pension and they stopped me £67. The Tax office say they cannot refund this as it has to be through my “pay”. This annuity is not due until September. Can I get a refund before this? I have just received my P60.

    May 31, 2016 at 12:16 pm
    • Sanjay Madhavji
      Amit Soni

      A refund for previous years does not need to be through your “pay”. I would send in a copy of the P60 to HMRC and ask for a refund.

      June 5, 2016 at 10:49 pm
  • Lindy Reply

    I dont have all of my previous tax years pay slips or P45′s how do I put in a claim for a tax rebate as I only worked a small part of the year?

    May 16, 2016 at 10:20 pm
    • Sanjay Madhavji
      Amit Soni

      Hi Lindy, we can process a claim even if you are missing documents. If you want to claim yourself, you may need to contact your previous employer to get a P45 or P60.

      June 5, 2016 at 10:51 pm
  • Joel Reply

    I am a non-resident and will be returning to my home country half way through the tax year. Is it possible to ring HMRC to have them adjust my tax free allowance so that it is split over the first 6 months of the year?

    May 11, 2016 at 3:31 pm
    • Sanjay Madhavji
      Amit Soni

      No. You would need to claim a refund after you have finished your job and have your P45.

      June 5, 2016 at 10:52 pm
  • Louise Scott-Maynard Reply

    Hi Amit,

    I am a full time worker with one job I had a look at my first payslip for the new tax year and noticed my tax code is 1106L, is this tax code correct for myself?

    May 10, 2016 at 3:31 pm
    • Sanjay Madhavji
      Amit Soni

      Yes that sounds correct. Many people have the code 1106L if they are claiming uniform laundry allowance (The 6 at the end means £60 which is the uniform cleaning).

      June 5, 2016 at 10:53 pm
  • Rafal Reply

    With my new tax code 1100L, my tax deductions raise up about 40 pounds a week, compare to previous 1060. Im really not happy with this.

    May 5, 2016 at 5:53 am
    • Sanjay Madhavji
      Amit Soni

      Hi Rafal, 1100L is a higher tax code than 1060L which means you can earn £400 more tax free.

      June 5, 2016 at 10:56 pm
  • Claire Reply

    Hi,

    I am on the tax code 1100L and last year was on 1060L, last year the agency I worked for didn’t take tax from me but this FY they are taking tax from me already, I earn £305.00 most weeks before tax, but I am a temp so might not get over the 1100 mark this year. When should I start paying tax ?

    Thank you Claire

    May 3, 2016 at 10:49 am
    • Sanjay Madhavji
      Amit Soni

      Hi Claire, you will normally pay tax when you start earning over £211 per week. If you don’t earn over 11,000 by the time the tax year is over, you can claim it back.

      June 5, 2016 at 10:58 pm
  • Joan Murphy Reply

    I am currently working as a part time teacher three days per week and my tax code is 1070L. In 2012 I went part time and claimed part of my teachers pension 75% I was immediately put onto an emergency tax code as HMRC thought I had a full time job as well as a pension This was eventually sorted or so I thought. I have since discovered I have been on a BR tax code for my pension since Jan 2013 I do not earn more than 40 thousand per year so could you tell me if these tax codes are correct please.

    May 2, 2016 at 6:47 pm
    • Sanjay Madhavji
      Amit Soni

      Hi Joan, its hard to say for sure without seeing the numbers, but I would say BR is correct. If you work 3 days a week, it is likely you use up your tax free allowance with your salary. This means anything else you earn (ie your pension) should all be taxed at 20% (which is what BR will do)

      June 5, 2016 at 11:00 pm
  • Charlotte Carney Reply

    If my Tax code has CUMU at the end what does this mean?

    April 18, 2016 at 2:06 pm
    • Sanjay Madhavji
      Amit Soni

      CUMU means “cumulative”, that’s not your actual tax code.

      April 21, 2016 at 2:20 pm
  • mohamed Reply

    I received a letter from HMRC saying my tax code has changed..but yesterday received my pay slip it had the old tax code..I am paid weekly..when exactly am I going to see the new tax code..

    April 6, 2016 at 3:30 am
    • Sanjay Madhavji
      Amit Soni

      Hi Mohamed, the tax year starts on 6th April (ie today) so you should see your new tax code in the next payslip you receive.

      April 6, 2016 at 2:42 pm
  • Jason Freeman Reply

    I have 2 jobs, one of which is full time and the other just weekends and some evenings. Will my tax code be the same for both?

    April 5, 2016 at 9:16 pm
    • Sanjay Madhavji
      Amit Soni

      Hi Jason,

      It depends on how long you have had each job and how much you earn. If HMRC have a good idea of how much you will earn in each job over the year, they may split your personal allowance proportional across each job.

      The most usual scenario is that you get the standard tax code for your main job and receive a BR tax code on the second (meaning you will pay 20% tax on your second job).

      April 5, 2016 at 9:19 pm

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