{"id":33717,"date":"2024-06-10T12:13:16","date_gmt":"2024-06-10T11:13:16","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=33717"},"modified":"2025-09-03T16:17:57","modified_gmt":"2025-09-03T15:17:57","slug":"how-to-change-your-tax-code","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/the-tax-basics\/how-to-change-your-tax-code\/","title":{"rendered":"How to change your tax code"},"content":{"rendered":"\n

In this guide, we\u2019ll teach you how to change your tax code, to ensure you\u2019re paying the correct amount of tax. Both underpaying and overpaying tax can have unwanted consequences, so it\u2019s best that you\u2019re always on your A game.<\/p>\n\n\n\n

What is a tax code?<\/h2>\n\n\n\n

A tax code is a bunch of numbers and letters that tells HMRC<\/a> the amount of tax you should be paying. Although it may seem random, it\u2019s not quite. <\/p>\n\n\n\n

Where can you find your tax code?<\/h2>\n\n\n\n

It can be found in several places, but the most common will be on any of your payslips<\/a>. If you can\u2019t find one, then call up HMRC. They\u2019ll be able to help.<\/p>\n\n\n\n

Of course, they will ask you security questions and require some other personal details, like your National Insurance number<\/a>, so have them on hand, ready to go when they eventually answer!<\/p>\n\n\n\n

Remember, the future belongs to those who prepare for it – no matter how dramatic that may sound, it rings true in even the small things.<\/p>\n\n\n\n

What do the numbers and letters on your tax code mean?<\/h2>\n\n\n\n

The numbers on your tax code tell your employer or pension provider how much tax-free income you are entitled to in a particular tax year.<\/p>\n\n\n\n

The letters are a guide to something further about your personal tax situation. Perhaps you\u2019re using the Marriage Allowance<\/a> or you\u2019re a high earner<\/a> and pay the additional rate tax of 45%. <\/p>\n\n\n\n

These things are important for HMRC to know so they can tax you fairly. Here\u2019s an image with a complete list of the letters:<\/p>\n\n\n

\"what<\/div>\n\n\n

Pro tip: If you take up a second job, then you don\u2019t get a Personal Allowance<\/a> for this one. To maximise your earnings, try to make sure that the job that pays you more is the one with the \u2018L\u2019 at the end of the tax code. Your second payslip will have the letters \u2018BR\u2019 on it.<\/p>\n\n\n\n

What is the most common tax code?<\/h2>\n\n\n\n

The most common tax code is 1257L. Every person gets a \u00a312,570 tax-free income allowance called a Personal Allowance. This means you won\u2019t be taxed on any money you earn up until that amount. After that, you\u2019ll have to pay Income Tax based on your earnings. <\/p>\n\n\n\n

Here are the Income Tax rates in the UK<\/strong><\/span> this tax year. <\/p>\n\n\n<\/div> \n\n

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The <\/span>income tax<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
Income<\/strong><\/td>\nTax rate<\/strong><\/td>\nTax band<\/strong><\/td>\n<\/tr>\n
Up to \u00a312,570<\/span><\/td>\n0%<\/span><\/td>\nPersonal allowance<\/span><\/td>\n<\/tr>\n
\u00a312,571 to \u00a350,270<\/span><\/td>\n20%<\/span><\/td>\nBasic rate<\/span><\/td>\n<\/tr>\n
\u00a350,271 to \u00a3125,140<\/span><\/td>\n40%<\/span><\/td>\nHigher rate<\/span><\/td>\n<\/tr>\n
over \u00a3125,141<\/span><\/td>\n45%<\/span><\/td>\nAdditional rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
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If you\u2019re earning between \u00a3100,000 and \u00a3125,140, there is a not-so-secret 60% tax trap<\/a>. Essentially, because you earn so much, you lose your tax-free Personal Allowance and end up paying a higher tax rate for a portion of your income.<\/p>\n\n\n<\/div> \n\n

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It\u2019s best to get professional help to maximise your earnings<\/h2>\n\n \n \n
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Taxfix offers a 30min, 1-1 tax advice consultation with an accredited accountant to make sure that you\u2019re always in the best tax position possible. Stay tax-efficient, always!<\/p>\n<\/div>\n <\/div>\n\n \n \n

\n\n Book now<\/a>\n\n\n <\/div>\n\n \n <\/div>\n<\/div> \n\n
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