PAYE Tax Code FAQs

What is the 2015/16 PAYE tax code?

What tax code do I use for 2015/16?

What is the emergency tax code for 2015/16?

How do I check my tax code?


 What is the 2015/16 PAYE tax code?

The basic PAYE tax code is set at 1060L for employees. This gives an employee a personal allowance of £10,600 for the year.

Employees who earn more than £121,200 have no tax code and those who earn between £100,000 and £121,200 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.

What tax code do I use for 2015/16?

In gereral, use 1060L 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 60 to last year's coding, however it is advised to double check with HMRC, and do not carry forward any month 1/week 1 adjustments
  • the employee joined you after 6 April 2015 without a P45.

If in doubt, check online and phone the tax office.

 What is the "emergency" tax code for 2015/16?

1060L is the default code in use.

 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 higer rate taxpayer you may find that your PAYE code is restricted in some way.

Pensioners

The rules are quite complicated: 

Pensioners aged over 77 will qualify for a tax code of £10,660 if they have income of less than £27,700. Where income exceeds this level the extra £60 of age allowance is reduced by £1 for every £2 in excess of £27,700.

Married pensioners over 80 may receive the married couples allowance adding up to 835 to their tax code.

More info: HMRC Tax Codes