A tax code is a series of numbers and letters used by HMRC and employers to show how much tax-free income you’re entitled to in a tax year. Your tax code tells your employer how much tax to deduct from your pay. If your circumstances change, HMRC will update your code, so it’s important to check it’s correct.
« Back to Glossary Index
Tax Guide UK Editorial Team: Our team of financial writers, tax researchers, and editors is dedicated to making UK tax easier to understand — and easier to manage. Every article is thoroughly researched, regularly updated, and written in plain English to help you stay compliant and confident.View Author posts