What is the difference between a Cumulative Tax Code, Week 1/Month 1 tax code and BR Tax Code?
The tax code you are on will depend on if you provide us with a P45 or a P46. The Cumulative tax code allows you to be more flexible a tax free allowance can accrue if you don’t use it. If you start late in a tax year the first few payments usually has little to no tax on. On a Week1/Month1 you are allocated a tax free allowance and if you don’t use it for a certain week or month you forfeit the tax free allowance. If you do not provide you a P45 and P46 on registration you will allocate a BR (Basic Rate) Tax Code until a P46 or P45 can be provided.
