PAYE11085 | Coding: codes: how they are used and calculated: types of code

Most tax codes are made up of a number followed by a letter, for example 747L. We call these suffix codes.

There are other tax codes for special cases.

The main ones are

• Prefix D code - used to charge tax at the higher rate and the additional rate

• Prefix K code - for cases where coding deductions exceed allowances

• Prefix S code – indicates the individual is a Scottish resident and tax is deducted at the Scottish income tax rates

• Prefix C code – indicates the individual is a Welsh resident and tax is deducted at the Welsh income tax rates

• Code BR - used to tell the employer to charge all payments to basic rate tax only

• Code NT - used to tell the employer not to tax any payments