NOTE: For employees who live in Scotland, you need to use different tax bandwidths and rates.

Tax codes

• C prefix - Income taxed using the rates in Wales.
• L - Entitled to the standard tax-free personal allowance. For example C1257L.
• CBR - All income taxed at basic rate in Wales. No free pay allowance. An employee may be given this tax code for a second job.
• NT - No tax. You should only use these codes if you're instructed to do so by HMRC.
• C0T - No free pay allowance. The personal allowance has been used up, or you don't have the details you need to give the employee a tax code. This is zero T, rather than OT.
• CD0 - All income taxed at the intermediate rate in Wales. This is D zero, rather than DO.
• CD1 - All income taxed at the higher rate in Wales.
• CD2 - All income taxed at the top rate in Wales. If an employee pays top rate tax, they don't get a personal allowance.
• M suffix - The employee has an increased personal allowance as part of Marriage Allowance legislation.
• N suffix - The employee has a decreased personal allowance as part of Marriage Allowance legislation.
• P suffix - Full personal allowance for those aged 65-74.
• T suffix - Used if any items of a tax code are under review by HMRC.
• Y suffix - Full personal allowance for those aged 75 and over.
• CK prefix - For example CK100, means that the pay adjustment is added to the taxable pay, rather than subtracted. This effectively increases the amount of earnings on which the tax is calculated. It's usually used for directors and employees whose additional benefits outweigh their personal allowance, for example, company cars, BUPA etc.