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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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What does the following tax code mean: 157T M1? Thanks

Customer Question

What does the following tax code mean: 157T M1?
Thanks
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. It means you have net allowances of about £1,570 out of £10,600 and that each month's pay is being taxed in isolation from the previous months in the tax year so as not to hit you with a heavy tax charge in one month. A Month 1 code usually means that an underpayment of tax has accrued and that will be picked up and assessed at the end of the tax year. Assuming you are entitled to a personal allowance of £10,600, most of your allowances are being used elsewhere against another source of income or you have taxable benefits in your job such as a company car or private medical insurance or HMRC are collecting an earlier year tax underpayment. There is information on tax codes here. If you want to check that HMRC have got their facts straight, call the number here and ask them to explain what is in your tax code and why. I hope this helps but let me know if you have any further questions.

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