Tax code 1060L – tax changes for 2015/16
Tax codes are issued by HMRC each tax year and reflect your personal tax-free allowance. For the 2015/16 tax year the new tax code for most people is 1060L.
Tax Code 1060L
Tax codes usually consist of a 4-digit number and a letter. These reflect your Personal Allowance for the relevant tax year, divided by 10, followed by a letter giving your employer an additional information about your personal circumstances. These are important details when calculating the correct amount of tax to be paid.
For 15/16 the tax code for the majority of people born after 5 April 1948 is 1060L, based on the £10,600 tax-free Personal Allowance. In this case, “L” means that you’re entitled to the normal tax-free amount. Sometimes your situation may be different, therefore your code would vary too. Find out more about the different tax scenarios in our detailed 2015/16 tax codes guide.
Where is my tax code printed?
There are several places where you can find your code, including your payslips, your P45 and P60 forms, and on HMRC PAYE coding notice letters. If you’re registered for the HMRC’s Self Assessment online service, then your tax code may be found online.
You may also have multiple tax codes, depending on the number of employers you have. The Office of National Statistics sited by the Telegraph reveals that over 1.2 million UK workers have a secondary source of income, whereas industry sources suggest that this number is at least 3 million. If you have a second job, or a job and a pension, then your will have two tax codes.
Read more how a second job would affect your tax position here.
When does it change?
Tax codes increase at the beginning of each tax year, i.e. 6 April to reflect the new Personal Allowance. It may also be changed during the year if HMRC is notified about changes in your income or benefits situation. For example, if you start or stop receiving state pension, benefits in kind, or rental income, and notify HMRC, you will receive a notice with a new tax code.
What if my code is wrong?
If you think your tax code is incorrect you should contact HMRC to reflect the changes. Very often that would mean you’re currently paying too much tax because your circumstances have changed and your records were not updated. Contact HMRC on 0300 200 3300 and explain your changes so that they can adjust your tax code and calculate the right amount of tax.
Finally, if you still have a question on the new 2015/16 tax codes, read this guide.
Hello. I’ve NINO and I’ve got a letter from HMRC that I’m with this code 1060L… is this emergency code?
Hi Lidia. The tax code 1060L is the normal tax code for the 2015/16 tax year and means that you are entitled to the full basic tax free personal allowance for the year.
Is the new code of 36L higher or lower the my previous code of K9 as there was no explanation with the new notification. Thanks in advance for your help.
Hi Michael. A K Code is a negative personal allowance so a code of 39L is higher than K9. However, if you are not sure why your code is so low you should contact HMRC to enquire.
Hello, please if your tax code is 1060L and you are taxed more than you expected, what do you do? Example: you earn £420 a month and you are charged £77 for tax and £50 for NI.
If you are only earning £420 a month and have a tax code of 1060L you shouldn’t have paid any tax or NI. You will need to speak to your employer to find out why this happened.
Where is my new tax code? Not received it yet and due a
small private pension payment 1.5.15. Do not want tax wrongly stopped
on it. I have usually received notification be now.
HMRC do not send coding notices out to everyone, particularly if you on the standard 1060L. If you require a copy of a coding notice you will need to ask HMRC to supply one for you.
Hello! Recently I have started to work in England, so I need to know please if it’s correct to pay £30 in every week because I earn just £330. My tax code is 1060L and may nino category is M.
If you earn £330 per week, £17,160 per year, you should pay approximately £25 per week in PAYE and £21 per week in NI Contributions.
My pay has stayed the same, my tax code has increased to 1060 but my tax deduction has increased by £10, why is this? HR cannot answer this question!
From 5th April 2015 the Personal Tax Free Allowance increased from £10,000 to £10,600. This means that you have an additional £600 per year which you do not pay tax on which equates to an additional £10 per month in your net pay.
I make 19,000 per year, my tax code was 1000L and it changed to 1060L. now I am paying 163.20 plus NI for 123.42. Is that correct?
On a salary of £19,000 with a tax free allowance of £10,600 you should be paying approximately £140 per month in PAYE and £110.44 in National Insurance.
My new tax code for this year is 1060L. However when I enter this tax code into online tax and NI calculators like the one on listentotaxman.com it calculates that I have tax free allowance of £10,609. However if I just enter 1060 (without the L) or leave that field entirely blank, it calculates my tax free allowance to be £10,600. Which one is correct?
I know the government has set the PA at £10,600, however on my actual payslip for this month the tax has been calculated showing a £10,609 tax free allowance.
The correct amount of your personal tax free allowance is £10,600.
Which is what I thought. But why does payroll software calculate it as different?
Hello, my name is Harry Worton and I have been placed on a K tax code and currently being taxed at 40% on my pension. Can you please shed some light!
Hello Harry. You will need to contact HMRC for an explanation as all tax code changes made by them are personal. If you haven’t received a coding notice, contact them directly to clarify.
My tax code just changed to 1060L, I get paid weekly, I thought that I was not supposed to pay tax until I have made over £10,600 during the tax year, but I have been getting taxed the £40 this week and £14 last week. Why am I getting taxed?
The personal allowance is £10,600 for the year but in practice this is split equally over the year so that monthly/weekly salaries stay approximately the same. Therefore you can earn £203.84 per week before paying any tax.
My tax code on my April payslip was still at 1000L. When I queried this with Payroll they said it doesn’t kick in till May and that she only does it when she has notification from HMRC. Is this correct and will I get a refund if I have paid too much tax in April?
The new tax code applies from 6th April 2015 therefore if you were paid after this date then it should have been using the new code. Not everyone receives a coding notice, especially if they are just on the normal personal allowance, and HMRC guidance states that all those on a 1000L code for 2014/15 should be updated to 1060L for the new tax year.
Because PAYE is calculated on a cumulative basis the tax you pay should be corrected when the new code is applied.
My tax code is 1024L – what does this mean? Can’t find any information about it… thank you.
Hi Galina. Unfortunately all tax code changes made by HMRC are personal so if you haven’t received a coding notice from HMRC explaining this you will need to contact them for a copy.
I am 18 its my first and only job I’ve been given 0T tax code from when i started work on the 2nd December 2014 and I am not earning more than 10,000 pounds but I’m still being taxed. I have mailed a letter to HM Revenue and Im still waiting for them to get back to me, but is there anything else I can do while im waiting.
If you have no other income then your tax code should be 1060L and you shouldn’t be paying any tax on a salary of less than £10,600. The best way of informing HMRC that your Tax Code is incorrect is by using their online form. Please see 2015-16 PAYE Coding Notice Query
I have been retired since 1996 and have received every year a HMRC PAYE coding notice letter. However, I don’t seem to have had one for 2014/15 and this year 2015/16. The last one being 2012/13. My circumstances have not changed. Shouldn’t I receive a coding notice letter as a matter of fact ?
Thank you.
Nicole
Not everyone receives a Notice of Coding from HMRC, especially if it hasn’t been changed, you automatically get a personal allowance whether a code is issued or not.
My annual salary is £19,239.60 gross. My tax code has changed to 1060L, tax deducted is £143.80 per month £127.87 is paid by my employer for NIC contribution and £111.76 is deducted from my salary for employee NIC contribution. Could you please advise if this is all correct. Thanks
Yes, the calculations are correct.
I have just started working. My tax cade is 1060L. I earn £320 a week. on my first pay slip it said i paid £19.80 National Insurance and no tax. it also says i am entitled to earn 1,224.24 before i have to start paying tax. Is this correct? Any advice much apprecited.
PAYE is calculated on a cumulative basis therefore, if you didn’t work in April you have your tax free allowance for that month to use up as well before paying any tax. NI is calculated on a weekly/monthly basis.
I have been employed since April 7th and have the tax code 1060L. I receive a payslip each week around £400 but so far I have had No Tax to pay. Before April I was employed with an agency for 4 months and before that self employed for 9 years.
Can you tell me why I have no tax to pay each week?
Thank you
Hi Jade. The code of 1060L means that your personal allowance is £10,600 for the year. In practice this is split equally over the year so that monthly/weekly salaries stay approximately the same therefore you can earn £203.84 per week before paying any tax. If you have worked every week since 7th April, earning £400 per week, then you should have paid some PAYE, I would query this with your employer.
I have just started working in April and my tax code is 500T. I believe this is wrong and have notified HR with no luck. How do I get them to change it to 1060L?
Your employer cannot change your tax code unless notified to do so by HMRC. If you think that your tax code is incorrect then the best way of informing HMRC and asking them to change it is by using their online form. Please see 2015-16 PAYE Coding Notice Query
I have just received a pay rise at work which took me from an annual salary of £25010 to £29360. I have had a pension contribution deducted which took my monthly net from £2446.67 down to £2373.27 and I have paid £297.80 in tax and £204.15 in NI and my tax code is 1060L. Are these calculations correct as I thought I would get more than I did? Thanks
Hi Bianca. Yes, these calculations are correct.
Hi there, could you please confirm these numbers are correct and that I am not paying more tax than I am supposed to? (My tax code is 1060L)
April payslip – Total Gross Pay £3591.67 – PAYE Tax 541.60 – National Insurance £344.38
This is a new tax year so I thought I had £10,600 tax free allowance…
Thank you for your help
The code of 1060L means that your personal allowance is £10,600 for the year. In practice this is split equally over the year so that monthly/weekly salaries stay approximately the same therefore you can earn £883.33 per month before paying any tax. The deductions you have paid are correct.
Hi,
I’ve noticed that I pay more tax and NI, when my code moved from 1000L to 1060L at the beginning of this new fiscal year, is that normal ?
just to precise: salary and situation didn’t change, only tax code.
Thanks
If your salary is the same as it was before 6th April 2015 then you should be paying slightly less tax and NI than in the last tax year.
My tax code was 1060L but now is 560L – what does this mean?
This doesn’t mean that you don’t get the personal allowance of £10,600, the same as everyone else, just that you may have some taxable benefits from your employer or underpaid tax from a previous year which is being collected through your code. You should have received a coding notice from HMRC which explains this, if not then you should request one to ensure this is correct.
Hi, I have recently started a new job, my first month my tax code was 1060L but this month has changed to 839L. I just wondered why and whether this was correct? Thank you
Hi Belinda. You may have some taxable benefits from your employer or underpaid tax from a previous year which is being collected through your code. You should have received a coding notice from HMRC which explains this, if not then you should request one to ensure this is correct.
My tax code has changed from 1000L to 1060L as expected but I appear to be @£150 worse off in April & May – as the taxable allowance has increased I would have assumed I’d have a little tiny extra per month. Nothing else has changed (i.e I still have Childcare voucehrs and medical etc ) – Do you know why this might be? Thanks!
If your salary is the same as it was before 6th April 2015 then you should be paying slightly less tax and NI than in the last tax year. Without being able to see your payslips we can’t tell why this would be.
I was put on emergency tax code W1514L at the beginning of the tax year, but I spoke to someone from HMRC to get it changed to 1060L as I won’t be earning more that £10,600 this year. However, when my payslip came through, even though the code had been changed I was still being taxed, and so was wondering why this is? I’ve been taxed around £200 since the start of the year, and I thought when the new code was applied I would receive this back in a rebate? Will this happen? Thank you!
It is impossible to say without seeing the figures however if you are not earning more than £883.33 per month then you shouldn’t be paying any tax. If your previous tax code was 1514L, then this was higher than the normal 1060L code, meaning that you could earn £15,145 before paying tax. Unless this was correct then you would have underpaid tax on this code and would have a bill at the end of the tax year.
I have two part time jobs. Both jobs I have the same tax code. 1060L; on one monthly wage I got £975 and paid £18.20 tax and £38.48 NI, on the second job I got £375.43 a month and paid no tax or NI. Is this ok?
No, this is not ok, you can only have a personal allowance of £10,600 you are currently receiving an additional £4,500 per year tax free. As you are earning more than £10,600 in your first employment you need to tell HMRC that your code is being used in the first job so they can issue a new one for the second.
Hi there, I found this post extremely useful for us, thanks so much!
My situation is a bit different.
Started at a new job on 1st May 2015 and I got my first payment on 22 May of £2692.37 (annual salary £40k). I haven’t got payslip yet, but I just received my new tax code (1060L). Just before the start of the new financial year I was unemployed.
However, things changed in my life and I have to leave the country permanently end of June. I believe that my company also pays for medical insurance, but not entirely sure if this will occur since day one or after my probation period.
Since I will be within the Personal allowance scheme, what’s the best way of receiving the full amount without paying any tax or needing to ask for tax return at the end of the financial year?
I would really appreciate you help!
Thanks in advance.
Hello Matteo. Whether you are still entitled to the full personal allowance depends on a number of factors including your residency. However, as far as I am aware, the only way that you can receive the full amount of the allowance if you leave part way through a year is by completing a Self Assessment Tax Return after 5th April 2016.
I am self employed at the moment (being paid by umbrella company). I need to join a employer now as full time employee on PAYE. Can I tell them I have been working as self employed and fill up starter check list. What option should I select under that. Option A or B. I am ceasing to be self employed and this will be my only job. I am confused as not sure whether I should call my current self employed job/employment. And whatever option I chose, what tax code will be applied to me? Thanks in advance for any help
Hi Gaurav. If you are being paid by an Umbrella Company then you are likely to be employed by that company and not self employed. In which case they should provide you with a form P45 when you leave which will provide your new employer with all the details they require.
My friend has 2 jobs and earns less than 1060 in total is she OK to still use this code for both jobs as she isn’t paying tax at any?
Hi Michelle. No, she can’t have two codes of 1060L, she should speak to HMRC and get her code split between the two employments.
Hi, I started a temp role on 220515, weekly pay. £14.00 per hour. Tax code is 1060L. Just received first week pay and No Tax was deducted, only NI. I know I am able to earn £10,600 per year before tax but I thought this was split over 12 months so that pay amounts would not change too much each week. Therefore I thought I would have paid tax on about £200 for that week. Or do I not pay any tax each week until I have earned over £10,600 which means I would not pay tax for about 6 months which doesn’t seem correct. Can you please advise and I appreciate this service. Thank you.
Yes, you are correct Elaine, the code of 1060L means that your personal allowance is £10,600 for the year. In practice this is split equally over the year so that monthly/weekly salaries stay approximately the same therefore you can earn £203.84 per week before paying any tax. If you don’t think your payslip is correct you will need to speak to your employer.
Hi There,
I have a question regarding W1 code – I was on 1060L W1 code which is emergency tax. The tax code has been changed to 1060L but I am still paying the same tax as last week which was emergency tax – is this right? Or will this take a while to kick in even though the tax code has changed on my payslip – is this my agencies error?
Many thanks
MF
Because we are at the beginning of the tax year there may not be a difference but it will be corrected if too much has been deducted in PAYE.
Hi,
I’ve recently changed jobs and have just received my tax code, it’s changed from 1060L to 792L. Does this mean I will be paying more tax now? Thanks in advance
Hi Courtenay,
This doesn’t mean that you don’t get the personal allowance of £10,600, the same as everyone else, just that you may have some taxable benefits from your employer or underpaid tax from a previous year which is being collected through your code. You should have received a coding notice from HMRC which explains this, if not then you should request one to ensure this is correct.
The tax code on my payslips for 2015 is 1000L. I believe that my code should have changed to 1060L after 6th April per the guidance issued by HMRC but my employer claims that they cannot make changes to my tax code until HMRC tell them to do so. Should my employer’s software not have automatically updated my code for the new tax year?
The new tax code applies from 6th April 2015 therefore if you were paid after this date then it should have been using the new code. Not everyone receives a coding notice, especially if they are just on the normal personal allowance, and HMRC guidance states that all those on a 1000L code for 2014/15 should be updated to 1060L for the new tax year. Therefore your employer should update your code.
Hi I just start work in uk I works 40 hours a week my tax code is 1060L but I’m working 20 hours extra on second job I did not get any tax code from second job is it change my first code or it will still remain same
You can only have a personal tax free allowance of £10,600 per year which is all used against your first employment if your tax code for that is 1060L. Therefore your tax code for the second job should be 0T or BR so that you are taxed on all of the income. If you do not earn more than £10,600 in your first job you can ring HMRC and request that your code is split between the two.
My tax code was changed from 1060L to 560l 0. What does it mean? Why do I have to pay so high tax when I haven’t even earned a £3000?
Thx
This doesn’t mean that you don’t get the personal allowance of £10,600, the same as everyone else, just that you may have some taxable benefits from your employer or underpaid tax from a previous year which is being collected through your code. You should have received a coding notice from HMRC which explains this, if not then you should request one to ensure this is correct.
I have cashed in small pension pot of after 25% tax free I have ended up with £8,637 after tax at normal 20%. Will my tax go up now as I am not sure what will happen as I am a little confused. I earn £345 per week before tax and my tax code is 1060L. I am 62 and am still working. I have received P45 from HMRC with Tax code etc to pass on to current employer but feel I might be worse off tax wise.
If you have been taxed on the full amount at 20% then this should not affect the PAYE that you are paying through your employment as you will not exceed the basic rate tax band.
I have never worked before this job and I started in January. But I payed 72.80 tax and 69.14 ni a month. Will I get anything back??? Am on a 15000 a year and get 1.248.21 a month before tax I was on 1000l but just changed to 1060l
Hi Paul. You are on the normal tax code and the calculations based on that are correct so you will not receive a refund.
I was given a pay rise in April which took me from 23k to 28k. It was back dated from 1st march which meant I had march difference in Aprils months wage. May’s wage it looks like I am not that better off is my tax correct?
2216.66 on top after pension – after tax and NI it takes me to 1764.90? My tax was 266.40 and NI 185.36.
I am wondering whether it is because I had a top up from backdating my rise?
Thanks
Katy
For a gross taxable amount of £2,216.66 for the month PAYE of £266.40 and NI of £185.36 is correct.
Hi,
My code has gone from 1060l to 560l this month, meaning my take home pay is a lot less than normal. Same job, same circumstances. Any idea why, and if I’ll be taking the lower pay home from now on?
Hi Ani. This doesn’t mean that you don’t get the personal allowance of £10,600, the same as everyone else, just that you may have some taxable benefits from your employer or underpaid tax from a previous year which is being collected through your code. You should have received a coding notice from HMRC which explains this, if not then you should request one to ensure this is correct. If your code remains at 560L then your take home pay will remain as the lower amount.
My top line this month was £4330.12 and my tax deductions are £861.00. NI £301.09 . My tax code is 1060L is this correct.
Based on the information you have provided, on my calculations your PAYE should have been £848.97 and NI £355.88
My wageslip tax code is 1066l but my p45 is a different code its 1006 l are they meant to be different ?
If the P45 is dated the same date as the payslip then they should be the same.
I changed jobs in Nov’14 and was emergency taxed in Dec’14 and Jan’15 on Tax Code 0TM1. My tax code was rectified in Feb’15. However, I then found myself unemployed for over 6 weeks at the end of Feb’15 until mid-Apr’15 when I started temping. No benefits were claimed throughout this period. I sent off a P50 form on 7/4/15 and finally received a response last week. I was advised that i had UNDERPAID tax, but I wouldn’t be billed for it so long as I didn’t query it ?!? How, if tax is calculated over the full year, can I have underpaid if I was unemployed for 1 month and was emergency taxed for 2 months? I would also like to point out that on the numerous occasions I have called HMRC to discuss this matter, I have been cut off. The whole scenario has left a bad taste in my mouth and led me to believe HMRC have absolutely NO customer service skills whatsoever.
Hi Ross. Unfortunately, without looking at the figures I am unable to know whether the calculation is correct. It is generally very difficult to speak to HMRC, perhaps you could find an accountant local to you who will review your papers.
The agency I’m working for is taking income tax off my pay since April 6th – £191.40 to date, my new tax code is 1060L. Will they refund it in due course as I didn’t pay any tax until Feb 2014 last year on my earnings (£10.750)?
Thank You
Alan, if your tax code is 1060L and you are paying PAYE then presumably your annual earnings are more than £10,600. You will only receive a refund if at the end of the tax year your income was less than this amount.
i have done some extra hours in my job which I am contracted to 37.5 a week . I was paid £1797.28 and my tax deduction was £182.80 and my NI was £135.03. the tax code is 1060L. Are these deductions correct? Please advise. Many Thanks
Yes, these deductions are correct.
I use to have a self employed assessment. But I got a new job and my first week payslip is. Total payment 679.25 income tax was 95.00 and NI was 62.91 and Employer NIC was 72.21. My tax code is 1060L (W1/M1).Please help me Rowena. Many thanks
The calculations for PAYE and NI are correct.
Hello,
I started working last year october 2014 to may 2015 and then changed jobs from may 2015 onwards. With my 1st employer i started paying tax after a certain amount which started around end of march. I am currently not paying any tax at all with my new employer although my pay comes through PAYE. Should I be worried? What should I do? Talk to my employer or call HMRC?
thanks.
The amount of PAYE that you pay depends on the amount that you earn. If you have a normal tax code of 1060L then the tax free pay is £883.33 per month and you pay PAYE on any amount earned above this. If this is not the case then you should talk to your employer.