A Guide To 1100L Tax Code

by Vidit Agarwal Marketing Director

What Is Tax Code? - 1100L Tax Code 2016/17

Tax code present in your pay slip, normally starts with a number and ends with a letter. A tax code is issued by HMRC to an individual according to their personal conditions. Tax code tells you how much tax to be deducted from your income. The standard and the most common tax code in UK for the year 2016/17 is 1100L which means you can earn £11000 in a year before income tax kicks in. UK government has changed the tax code for the tax year 2016-17, take-home pay was increased and additional employee benefit was provided (basic tax-code 2015/16- 1060L). Tax-free personal allowance on your taxable income had been increased each year till now. S1100L tax code was used instead of 1100L in Scotland as letter ‘S’ represents Scotland tax payer.

Tax code is a string of 4 digit number followed by an alphabet. Multiplying numbers in your tax code by 10 will tell you how much income you can take without paying income tax on it and letters in tax code represent an individual personal circumstances, how does it affects personal tax-free allowance. In the beginning of the every tax year, HMRC issue new tax codes.

1100L Tax code- Personal Allowance

Every UK taxpayers are entitled to tax-free personal allowance. It means that everyone is allowed to take certain income home without paying income tax on it. The most of the individual tax code was 1100L in UK for the tax year 2016-17, which means there tax-free personal allowance was £11000. If tax free allowance is given in equal portions throughout the year to an individual:

If paid weekly, tax-free personal- £211.54
If paid fortnightly, tax-free personal- £ 423.08
If paid monthly, tax-free personal- £916.67
If any taxable income over and above the tax-free allowance, an individual pay tax according to which tax bands they are in.

Common reasons for why individual is not on a standard tax code:

If an individual is working more than one job
If individual is receiving some kinds of benefits such as company benefits or state benefits
If individual owe income tax from the preceding year.

1100L is a cumulative tax code.

1100L Tax Code Ending With ‘M1’, ‘W1’, Or ‘X’ – What Does It Mean?

If an individual pay slip shows tax code ending with either ‘M1’, ‘W1’, or ‘X’, it means they are on emergency tax code. Emergency tax code is a temporary tax code. HMRC normally issued emergency tax code if it is unable to collect sufficient information to issue correct tax code, if individual has started a new job or if employer does not have P45 of its employee.