What is the most common tax code?
The most common tax code in the UK is 1257L. This code is widely used because it represents the standard tax-free allowance and applies to individuals with a single job or pension.
HMRC doesn’t give out exact numbers about tax codes. But in 2022, about 32 million people in the UK paid income tax. It’s guessed that around 65-70% of them are basic rate taxpayers. So, it is fair to say that the 1257L tax code might be used by about 20 million workers in the UK.
List of Tax Codes and What They Mean
List of Tax Codes and What They Mean: Tax codes may seem like a jumble of letters and numbers but they hold significant importance in determining how much tax you pay and how your income is taxed.
Understanding these codes is important for ensuring accurate tax calculations and avoiding unnecessary tax overpayments or underpayments.
In this article, we’ll guide the various tax codes used by tax authorities and explain what they mean for taxpayers.
Table of Content
- What is a Tax Code?
- List of Tax Codes and what they mean
- Where can I find my tax code?
- What does a tax code look like?
- What is the most common tax code ?
- How does a tax code work?
- Conclusion
- FAQs on List of Tax Codes and What They Mean