A tax code with the letter L is the most common 'standard' tax code.

A tax code with the letters BR refers to 'Basic Rate'. this means you have no personal allowance and all of your income is taxed at the 'Basic Rate' which is currently 20%

A tax code with the letters D0 means that you do not have a personal allowance, all of your income is taxed at 40% (21% in Scotland). This is usually due to additional income such as a second job, often your personal allowance is applied to your other job.

A tax code with the letters D1 means that you do not have a personal allowance, all of your income is taxed at 45% (42% in Scotland). This is usually due to additional income such as a second job, often your personal allowance is applied to your other job.

A tax code with the letters NT means No Tax. This means you pay no tax on this income but do still pay National Insurance contributions. this tax code is usually used when an employee is no a UK tax resident.

A tax code with the letters W1 means 'week 1' and is essentially an 'emergency tax code' until HMRC have enough information to issue you with your regular tax code. For purposes of this calculator, we have replaced this emergency tax code with "L" as this is the most common code you are likely to end up on.

A tax code with the letters M1 means 'month 1' and is essentially an 'emergency tax code' until HMRC have enough information to issue you with your regular tax code. For purposes of this calculator, we have replaced this emergency tax code with "L" as this is the most common code you are likely to end up on.

A tax code with the letter T means that your standard personal allowance has been adjusted. This could be due to additional income such as from rental or investment income declared on a self assessment.

A tax code with the letter K is usually used when deductions due for company benefits, state pension or tax owed from previous years are greater than your Personal Allowance.

A tax code with the letter X is essentially an 'emergency tax code' until HMRC have enough information to issue you with your regular tax code. For purposes of this calculator, we have replaced this emergency tax code with "L" as this is the most common code you are likely to end up on.