Common tax code letters and what they mean
Code Reason for use
L for those eligible for the basic personal allowance (this is also used as an emergency tax code - read more under the section 'Emergency tax code')
P for persons aged 65 to 74 and eligible for the full personal allowance
V for persons aged 65 to 74, eligible for the full personal allowance and the full married couple's allowance (for those born before 6 April 1935 and aged under 75) and estimated to be liable at the basic rate of tax
Y for persons aged 75 or over and eligible for the full personal allowance
T if there are any other items HM Revenue & Customs (HMRC) needs to review in your tax code
K when your total allowances are less than your total 'deductions' - read more in 'How tax codes are worked out'
How tax codes are worked out Other tax codes
If your tax code has two letters but no number, or is the letter 'D' followed by a zero, it normally indicates that you have two or more sources of income and that all of your allowances have been applied to the tax code and income from your main job.
Code Reason for use
BR Is used when all your income is taxed at the basic rate - currently 22%. From 06/04/2008 the basic rate is 20% (most commonly used for a second job)
D0 Is used when all your income is taxed at the higher rate of tax - currently 40% (most commonly used for a second job)
NT Is used when no tax is to be taken from your income or pension