Your tax code is calculated by HMRC and is used by employers or pension providers to work out how much income tax to take from your pay or pension. A tax code is made up of letters and numbers and is usually shown on your payslip.
1150L is the standard tax code issued for the 2017/18 tax year and is used for most people who have one job or pension. The numbers in your tax code show how much tax free income you are entitled to in the current tax year. To work this out you need to multiply your tax code by 10 as the last digit is removed. If you are on a tax code of 1150L your tax free personal allowance for this tax year will be £11,500.
The letters in your tax code refer to your situation and how it will affect your personal allowance. The L suffix means you are under 65 and entitled to the standard tax free personal allowance.
For more information on what each letter means on your tax code please follow the link below –
There are a number of reasons why HMRC will adjust your tax code, for example if you have more than one employment, taxable benefits in kind, pension or taxable state benefits on which you owe tax. It is really important that your tax code is correct to so that you pay the correct amount of tax through the year. It is your responsibility as an individual to check your tax code and not your employer or payroll provider. If your tax code has been adjusted and you do not know why or there has been a change in your circumstances, you should contact HMRC directly.
