Tax Codes Flashcards
Understanding UK Tax codes (21 cards)
What is the main purpose of the UK tax code?
To determine how much income tax an individual has to pay.
True or False: The UK tax code only applies to individuals earning over a certain threshold.
False
What does the letter ‘L’ signify in a UK tax code?
It indicates that the individual is entitled to the standard personal allowance.
Fill in the blank: The UK personal allowance for the tax year 2023/24 is £________.
12,570
What is the tax code for a person who has not provided their employer with a P45?
BR
Multiple choice: Which tax code indicates that an individual is on a higher rate of tax? A) 1257L B) 1257M C) 1257H D) 1257X
C) 1257H
What does the ‘M’ in the tax code 1257M represent?
It signifies that the individual is entitled to the marriage allowance.
True or False: The tax code can change during the tax year.
True
What does the ‘T’ in a tax code indicate?
It indicates that the individual’s tax calculation is more complex.
Fill in the blank: A tax code starting with ‘K’ indicates that an individual has taxable benefits exceeding £________.
2,500
Multiple choice: Which of the following is NOT a valid tax code? A) 1250L B) 1234Z C) 1257L D) 1257M
B) 1234Z
What is the significance of a tax code ending with a letter ‘X’?
It indicates that the tax code is temporary.
True or False: Tax codes in the UK are issued by HMRC.
True
What is the tax code for someone who earns income from two different jobs?
The tax code will typically be split between the two jobs, often resulting in one job having a BR code.
Fill in the blank: The tax code 0T means that the taxpayer has no ________.
personal allowance
Multiple choice: For the tax year 2023/24, which tax rate applies to income over £50,270? A) 20% B) 40% C) 45% D) 25%
B) 40%
What does the ‘D’ in a tax code indicate?
It indicates that the individual is a director of a company.
True or False: A tax code can reflect student loan repayments.
True
What is the tax code for someone who has reached state pension age and is entitled to the personal allowance?
The tax code will typically be 1257L unless adjusted for other income.
Fill in the blank: The tax code 1257L is commonly used for ________ taxpayers.
most
Multiple choice: Which tax code would indicate an individual is a non-resident for tax purposes? A) R B) N C) X D) O
B) N
