Tax code 15/16

The standard tax code for the 15/16 tax year is 1060L

What is a tax code?

A tax code is used by your employer (the company you work for) so that when they are calculating your salary they know how much income tax to deduct under the Pay As You Earn (PAYE) system.

tax-code-1516

What is the 15/16 tax year?

6th April 2015 to 5th April 2016

What does 1060L mean?

It means that your first £10,600 of income is tax free. This is the standard tax code and may not apply to everyone. HMRC will adjust your tax code for items such as:

  • Employment benefits
  • Interest income taxed at the higher rate
  • State benefits e.g. state pension

HMRC will send you a notice of your new tax code. If you are not on the standard tax code you need to make sure the adjustments they are proposing are correct – often they carry on doing something based on previous years which may not be relevant to you any longer.

If you need to amend your tax code you can phone HMRC or use their online form to ask them to do this and explain why it needs adjusting.

Where can I find my tax code 15/16 ?

If you don’t have your tax code notice you should also be able to see your tax code on your payslip.

I am a Director of my own Limited Company, how much salary should I pay?

We have written a guide here which shows the optimum levels of salary and dividends for the 15/16 tax year.