If you are a full-time or part-time employee you will have a tax code. You can find this on both your payslip and P45 form. Your tax code tells your employer what should be deducted.
Deductions to your pay include tax and national insurance, which are worked out via the tax code. But not everyone has the same tax code. For example, if you are working part-time earning less than £11k your tax code will be different to someone working full-time earning around £20k.
What does your tax code include?
Tax codes include information regarding your own personal allowance. Most full-time staff will have a tax code something like 1100L. This means there’s £11,000 of tax free allowances.
What could make your tax code change?
Changing jobs, increase in salary and employee benefits can all affect your tax code.
Who can help you with tax code queries?
If you think you’ve under or overpaid tax recently, you should talk to a HR manager or contact HMRC.