PART 2: TAX
Prefix Letters and Suffix Letters
D Tax is to be deducted at the higher/additional rate on all earnings. D0 = 40%, D1 = 45% COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS SD Scottish taxpayers only, SD0 = 21%, SD1 = 41% and SD2 = 46% K Employee with additional taxable pay, rather than free pay, which indicates that tax is to be collected on both earnings/benefits in that employment plus earnings or income from another source. SK A Scottish taxpayer with additional taxable pay instead of tax free pay. L Basic personal allowance M A spouse or civil partner receiving the Marriage Allowance from April 2015 N A spouse or civil partner giving up the Marriage Allowance from April 2015 S Introduced from 6th April 2016 this prefix indicates the person is a Scottish taxpayer. S125L etc. T Suffix codes, the employer may only adjust the value of the code following individual notification from HMRC. Codes of 0T are issued i.e. no free pay is permitted but the employee will pay tax at 20%, 40% and 45%. All Letter Codes
BR
Tax deductible on all earnings at basic rate, currently 20% - no free pay
D0
Tax deductible on all earnings at higher rate, currently 40% - no free pay
D1 Tax deductible on all earnings at additional rate, currently 45% - no free pay) code introduced from April 2011 No printing, copying or reproduction permitted. NT This indicates the employee is not subject to tax in that employment e.g. expatriates. A new statutory resident test was introduced from 6.4.13 that dictates the use of this code SD0 Scottish taxpayer, tax deductible on all earnings at the intermediate rate, currently 21% - no free pay SD1 Scottish taxpayer, tax deductible on all earnings at the higher rate, currently 41% - no free pay SD2 Scottish taxpayer, tax deductible on all earnings at the at the additional rate, currently 46% - no free pay
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