Tax codes are a hot topic at the moment as HM Revenue and Customs (HMRC) has now emailed or posted notifications of changes to tax codes for the 2022/23 tax year to an estimated 12 million people across the UK.
A tax code is used by an employer or pension provider in order to work out how much Income Tax to take from an individual's pay or pension.
Tax code 1257L will be the most widely used tax code for the 2022/23 financial year and is expected to be unchanged until 2026 as it only replaced the previous tax code - 1250L - for the 2021/22 period.
