What is the 2018/19 PAYE tax code?

What is the 2018/19 PAYE tax code? What is the PAYE code from 6 April 2018? What is the PAYE code for the year to 5 April 2019?

This is a freeview 'At a glance' guide to the 2018/19 PAYE tax code.

The basic PAYE tax code is set at 1185L for employees. This gives an employee a personal allowance of £11,850 for the year. This is also called the emergency code.

Employees who earn more than £123,700 have no personal allowance and receive an 0T tax code (see below).  

Employees who earn between £100,000 and £123,700 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 be £43,430 in 2018/19, compared with an increase to £46,350 in the rest of the UK.

What tax code do I use for 2018/19?

If the employee is a starter or casual worker complete the Starter Checklist.

Otherwise use 1185L 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 35 to any tax code ending in L.
    • Add 39 to any tax code ending in M.
    • Add 31 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 2018/19?

1185L is the default code.

What is code ending in 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, is a casual worker or earns over £123,700.

How do I check my tax code?

Statistically, less than 80% of employees bother to check their PAYE code. It is foolish not to check it.

  • 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 should find that your PAYE code is restricted in some way. 
  • If your taxable benefits are not adjusted for on your PAYE code it may be that there is an error or your employer may be payrolling your benefits. Check with your employee first.
  • If you fail to check your code you may pay the wrong amount of tax. Do not rely on HMRC to provide you with the correct code.

See How to check your PAYE code.

Pensioners

Pensioners no longer qualify for any additional age allowance. Married pensioners over 83 (born before 6 April 1935) may receive the married couples allowance adding up to 869 to their tax code.

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