Cumulative v. Non Cumulative Tax Codes: What’s the Difference?
Learn the difference between cumulative and non-cumulative tax codes and how it affects how much personal allowance an individual receives.
Tax Codes
Tax codes affect how much income tax you pay on your payslip, so it’s important to make sure your employer is using the right one. Here you’ll find guides to help you understand how tax codes work and how deductions are made.
Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in these guides are legally correct but are for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional. I cannot accept responsibility for any losses or penalties you may incur while following the contents.
How Tax Codes Work
A tax code is a numerical number followed by a letter issued by HMRC. Find out how they are generated and what yours means in these guides:
- Understanding HMRC Tax Codes
- Why Did HMRC Change My Tax Code?
- What Happens If Your Tax Code is Wrong?
Types of Tax Codes
Income tax and your personal allowance may be calculated in different ways if you have different tax code letters. Here are the most common adjustments and what they mean:
Common UK Tax Codes
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What Happens If Your Tax Code is Wrong?
Find out what happens if your tax code is wrong, how tax refunds work and how to contact HMRC to get things corrected.
Why Did HMRC Change My Tax Code?
Did HMRC notify you about a change in your tax code? Wondering why a tax code change has been put through? Then read on to find out the most common reasons tax code changes happen, how to find out why yours has changed and what to do if you think HMRC has made a mistake.
1257l Tax Code: Everything You Need to Know (And Check For)
What tax code 1257L means, what it means for how much you are paid into your bank account and what the letters and numbers stand for.
K Tax Code Explained (+ What To Do If It’s Wrong)
Understand the K tax code including how it is worked out by HMRC, what it means and why it is given to individuals in certain situations.
What are the Emergency Tax Codes? (+ Avoiding Emergency Tax)
Find out what the emergency tax codes are, how emergency tax works and how to avoid getting put on the codes BR, D0 and W1/M1.
Understanding Your HMRC Tax Code
How to understand HMRC tax codes including how they’re worked out, a list of tax code letters and what they mean plus how coding notices work
1185l Tax Code Meaning
If your payslip shows the 1185l tax code, then you’re on one of the most commonly used tax codes for 2018. In this guide, I’ll explain more about this code, including what it means, why it’s used and how to check it’s right for you. What is a Tax Code? A tax code is a … Read more
What is the Tax Code D0? (+ What Does it Mean for Your Tax)
Understand what the D0 tax code means, reasons why your employer has put you on it and what it means for your income tax.
What the OT Tax Code Means (+ How it Affects the Tax You Pay)
Understand how the 0T tax code works, how it affects the tax rate you’re paying and how 0T tax refunds work.