Tax Codes and Emergency Tax?
Your tax code relates to the tax free allowance that has been allocated to you. For the 06/07 tax year the basic tax code is 503L which means you have a tax free allowance of 5,035. If your tax code has any of the following at the end, “X”, “M1” or “W1”, then you have probably paid too much tax and are due a refund. Another tax code is “BR”, this indicates that no tax free allowance has been given to you, you will also have probably paid too much tax here. These are forms of emergency tax and are usually charged if your employer is not sure how much tax you should be charged. Tax codes are shown on payslips, P45s and P60s.
Your tax code relates to the tax free allowance that has been allocated to you. For the 08/09 tax year the tax code is 603L which means you have a tax free allowance of £6,035. If your tax code has any of “X”, “M1” or “W1”, then your tax is being calculated on your monthly or weekly earnings as opposed to an annual salary basis. Another tax code is “BR”, this indicates that no tax free allowance has been given to you and the basic rate tax is being charged. These are forms of emergency tax which are usually charged if your employer is not sure how much you should be taxed. Tax codes are shown on payslips, P45’s and P60’s.
