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HMRC internal manual

PAYE Manual

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HM Revenue & Customs
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Coding: coding allowances and reliefs: introduction

A code is issued to give effect to allowances and reliefs against PAYE income. The rates and amounts of allowances can change annually and are announced by the Chancellor in the Budget.

The Scottish Government is able to set their own income tax rates from 6 April 2016. Where the Scottish Rate of income tax is applicable the tax code will have an S prefix e.g. S1100L, SBR, S0T and SD0.   

Tax Code NT will remain the same for both United Kingdom (England, Wales and Northern Ireland) and Scottish taxpayers. 

An individual must normally make a specific claim to a relief before you can give the relief in the code. Further instructions regarding entitlement to a relief and when the relief can be given are detailed in the Relief Instructions (RE) Manual.