Your tax code is a series of laws and regulations that outline the rights and responsibilities of the general public as they relate to taxation. It is used by your employer or pension provider to work out how much Income Tax to take from your pay or pension. Here are some key points about tax codes:
- Authority: Tax codes are the ultimate authority on any tax you are required to pay and provide the basis for everything on your tax return.
- Creation: Tax codes are initially drafted by elected officials and then voted on, and they apply at the federal, state, county, and city levels.
- Applicability: Tax codes apply to individuals, businesses, and other entities, as well as to transactions subject to the governments jurisdiction.
To find your tax code, you can check your tax code for the current year online, on your payslip, or on a Tax Code Notice letter from HM Revenue and Customs (HMRC) if you receive one. Additionally, there are online tax code calculators available to help you understand your tax code.
