What is the 2017/18 PAYE tax code?

What is the 2017/18 PAYE tax code? What tax code do I use for 2017/18? What is the emergency tax code for 2017/18? How do I check my tax code?

This is a freeview 'At a glance' guide to the 2017/18 PAYE tax code.

What is the 2017/18 PAYE tax code?

The basic PAYE tax code is set at 1150L for employees. This gives an employee a personal allowance of £11,500 for the year.

Employees who earn more than £123,000 have no personal allowance and receive an 0T tax code (see below).  

Employees who earn between £100,000 and £123,000 have their personal allowance tapered away. It is reduced by £1 for every £2 in excess of £100,000. 

Employees who have claimed the marriage allowance by virtue of a low earning spouse have a code with a suffix of M. Those who surrender the allowance have a suffix of N.

Employees who are Scottish Taxpayers have the prefix S. The higher rate threshold in Scotland will remain at £43,000 in 2017/18, compared with an increase to £45,000 in the rest of the UK.

What tax code do I use for 2017/18?

In general, use 1150L for employees unless:

• Notification of a different code is advised by HMRC.
• The employee's code was not the basic code last year, in which case expect to:
  • Add 50 to any tax code ending in L.
  • Add 55 to any tax code ending in M.
  • Add 45 to any tax code ending in N.  

It is advisable to double-check with HMRC and if in doubt check online or phone the tax office.

Do not carry forward any week one or month one adjustments.

What is the 'emergency' tax code for 2017/18?

1150L is the default code in use.

What is code OT?

This means that you are not given any allowances against tax. This is most probably because your employer has not been given your starting information or you earn over £123,000.

How do I check my tax code?

If your code is lower or higher than expected you need to find out why. It may have been adjusted by HMRC to code out underpayments of tax in previous tax years, see PAYE collection of tax debts.

If you receive any benefits from employment or do more than one job, or receive investment income and are a higher rate taxpayer, you may find that your PAYE code is restricted in some way.

See How to check your PAYE code.

Pensioners

Pensioners no longer qualify for any additional age allowance. Married pensioners over 81 (born before 6 April 1935) may receive the married couples allowance adding up to 835 to their tax code.