Tax Codes

Some tax codes, called "suffix codes", end in a letter. This letter is used to indicate the tax allowances to which you are entitled and on which your tax code is based. There are five suffixes in current use.

"L" indicates that you are entitled to the personal tax allowance, i.e. £6,475 for the 2009/10 tax year.

"P" means that you are entitled to the higher personal tax allowance that is available to persons age 65 and over. This allowance is £9,490 for the 2009/10 tax year.

"Y" means that you are entitled to the higher personal tax allowance that is available to persons age 75 and over. This allowance is £9,640 for the 2009/10 tax year.

"V" means that, in addition to the higher personal tax allowance for persons age 65 and over, you are entitled to the age-related married couple's allowance for couples where one of them was born before April 1935. This allowance is £6,865 for the 2009/10 tax year. In practice, this allowance does not apply during 2009/10 as those receiving it will reach age 75 during the tax year and, as a result, the higher rate married couple's allowance applies. This tax code suffix will also, therefore, cease to be used.

"T" is used in a number of different situations:
(1) It is generally used to indicate that the number is "temporary", perhaps because your tax office is not yet certain of your tax affairs.
(2) It can also mean that, in addition to the higher personal tax allowance for persons age 75 and over, you are entitled to the age-related married couple's allowance for persons age 75 and over. This allowance is £6,965 for the 2009/10 tax year.

(If you entitled to one or more of the age-related allowances, you should understand that there are a number of statutory restrictions that could mean that you do not receive the full allowance.)



More FAQs Related to Tax Codes
What does my tax code mean?
What does the 'X' (or '1', or 'W1' or 'M1') after my tax code mean?
How does my employer know my tax code when I didn't hand in a P45?
I am a student at college or university. How can I be paid wages without paying tax?

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