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HMRC internal manual

PAYE Manual

Coding: codes: how they are used and calculated: types of code

Most tax codes are made up of a number followed by a letter, for example 747L. We call these suffix codes.

There are other tax codes for special cases.

The main ones are

  • Prefix D code - used to charge tax at the higher rate and the additional rate
  • Prefix K code - for cases where coding deductions exceed allowances
  • Prefix S code – indicates the individual is a Scottish resident and tax is deducted at the Scottish Income Tax rates
  • Code BR - used to tell the employer to charge all payments to basic rate tax only
  • Code NT - used to tell the employer not to tax any payments