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A PAYE Notice of Coding, also known as a form P2, is a letter sent by HMRC that gives you your tax code. It also tells you the reason why HMRC gave you that tax code.
You should double-check that the tax code stated on your PAYE Notice of Coding is correct and that all of the information on your notice of coding is accurate. The most common tax code in the 2021/2022 tax year is 1250L. Here is what the other tax codes mean.
Knowing your tax code is important because your employer deducts tax from your salary through the Pay As You Earn (PAYE) system. If your tax code is incorrect, you might be paying the wrong amount of tax.
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