Overview
- The most common tax code is 1257L, which corresponds to the £12,570 personal allowance for people with one job or pension.
- If a new employer lacks your previous pay and tax details you may be put on a temporary emergency code ending W1, M1 or X, so providing a P45 helps avoid incorrect withholding.
- HMRC says individuals are responsible for ensuring their code is correct, and details can be viewed and updated through the HMRC app or personal tax account.
- Overpayments are refunded and underpayments billed once HMRC receives full income information, and refunds cannot be issued until employer or pension data is in place.
- For people with multiple income sources, additional jobs may be coded BR, D0 or D1 unless HMRC is informed, and analysts at RIFT report average rebate claims of about £3,000.