National Payroll services
01745 812222

Tax Allowance

What is a tax allowance? This is the amount you can earn before you pay any tax. If you have a tax allowance of, say £10,000 you can earn £192.31 p/week without paying any tax. (£10,000 / 52)

This Tax Allowance is set using a Tax Code. If you have a Tax code of 1060L it means your Tax Allowance is £10600 (adding a zero to the end) before you pay tax, the L means basic tax free personal allowance.

There are different Tax Codes depending on your personal circumstances.

L

You’re entitled to the basic tax-free Personal Allowance

M

Marriage Allowance: you’ve received a transfer of 10% of your partner’s Personal Allowance

N

Marriage Allowance: you’ve transferred 10% of your Personal Allowance to your partner

Y

You were born before 6 April 1938 or over and entitled to your bigger full tax-free Personal Allowance

T

Your tax code includes other calculations to work out your Personal Allowance, eg it’s been reduced because your income is over the amount for basic rate tax

OT

Your Personal Allowance has been used up, or you’ve started a new job and don’t have a form P45, or you didn’t give your new employer the details they need to give you a tax code

BR

All your income from this job or pension is taxed at the basic rate (usually used if you’ve got more than one job or pension)

DO

All your income from this job or pension is taxed at the higher rate (usually used if you’ve got more than one job or pension)

D1

All your income from this job or pension is taxed at the additional rate (usually used if you’ve got more than one job or pension)

NT

You’re not paying any tax on this income

If you are married and either yourself or your partner does not pay tax, you can transfer part of your allowance to their allowance.

Trusted by 100's of Businesses

 

businesses2

 

Central Payroll is part of the Abacus Group Est 1993

ABOUT US

Central Payroll Services is part of the Abacus Group.
Based in the market town of Denbigh, we cover the whole of the UK.
We have been serving our clients for over 25 years, with all aspects Payroll.

Help and Advice

If you wish any help or advice regarding Payroll, or Accountancy in general. Please feel free to give us a call

CONTACT US

Workplace PensionsTelephone - 01745 812222
Fax - 01745 814448

RTI Real Time Informationadmin@centralpayroll.co.uk

No 1 payroll bureau in the ukCentral Payroll
9 Ruthin Road
Denbigh, LL16 3EH