HMRC Launches PAYE code tool

Published: 31st July 2023

Your tax code is what your employer or pension provider uses to deduct tax from your payments. When changes are required, you are sent a P2 coding notice showing how the code is worked out. The notice can be confusing, and cause worry. HMRC has launched a new online tool to help you. You need a few details to use it, namely your:

• tax code
• annual income, before any deductions
• company benefits details (if any)
• State Pension amount (if any).

In some circumstances, you may find you need to change your code, and the tool directs you to the relevant service to do this.