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The tax code is just a series of numbers and letters that tells HMRC how much tax you should be paying.
There are three main components that determine your tax code:
The numbers in your tax code tell your employer or pension provider how much tax-free income you are entitled to in that tax year.
If you’re not sure what basic rate, higher rate, etc. means, read more about the UK income tax rates and tax bands here.
The most common one for 2022/23 will be 1250L:
If you take a second job, then you don’t get a personal allowance for this one, so you need to make sure that the job that pays you the most is the one with “L” and not “BR”.
You should contact HMRC as soon as possible — they can sort it out for you.
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