Playing now

Playing now

What are tax codes?

Glossary definition

What are tax codes?

Tax codes are used to calculate how much tax to deduct from your pay or your pension.

HMRC works out the code and sends it through you so you can ensure your employees are paying the right amount of tax. HMRC-recognised payroll software will always gaurentee that your employees have the most up to date tax codes.

The comprehensive A-Z guide for payroll professionals

Learn about the key terms and concepts that will help you to manage the complexities of payroll systems effectively, and to confidently meet compliance requirements.

Get your free guide