What does the letter at the end of my tax code mean?

Some tax codes end in a letter and are referred to as ‘suffix codes’.  This letter is used to indicate the level of tax allowances that an employee or pensioner is entitled to.  In turn, this gives an indication of how the numeric part of the code is made up.  There are four suffixes in current use:

Letter Reason

L

This is an indication to that the tax code includes the basic Personal Allowance.  For 2011/12 tax year, this is £7,475.00.  This suffix is also used for the ‘emergency code’

P

This indicates that the employee or pensioner is in receipt of the full Personal Allowance that is available to persons age 65 – 74.  For 2011/12 tax year, this is £9,940.00

Y

This indicates that the employee or pensioner is in receipt of the full Personal Allowance that is available to persons age 75 and over.  For 2011/12 tax year, this is £10,090.00

T

This suffix is, generally, used for one of two of  reasons:

  1. Where HMRC have deemed the number ‘temporary’, possibly because the tax office is unsure of the employee’s  / pensioner’s tax affairs
  2. Where the employee / pensioner is in receipt of the age-related Married Couple’s 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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Payroll Update 2013