Never understood taxes...

Tax code introductions


The three types of tax code
Suffix codes
One or more numbers followed by L, P, T, or Y Example: 345L, 456P or 0T The number plus ‘9’ is the amount of pay an employee can earn from you in a tax year before they pay any tax. For example a tax code 508L means the employee is entitled to £5,089 of tax-free pay in the tax year.
The letter determines how we’ll ask you to adjust the number part of the code to take account of any Budget changes that may affect the employee’s tax-free pay.
Prefix codes
Start with D or K Example D0 or K123 The code D0 means you must deduct tax at the higher rate from all pay.
The letter K means your employee has already used their tax-free allowances for the year. The number plus ‘9’ indicates how much must be added to their taxable income to make sure they pay tax on all the taxable income they have received. This may mean you end up deducting tax from their pay at higher rates than normal.
For example, K123 means £1,239 needs to be added to their taxable income to ensure they pay the right tax.
Letter only codes
BR or NT BR means you must deduct tax at the basic rate from all their pay.
NT means you mustn't deduct any tax from their pay.
Note: Only refund any tax deducted from an employee before the issue of an NT code when HMRC tells you to operate it on a cumulative basis.

DIY accounting


HMRC tax guidance for doctors

A summary from what appears to be a commercial company 'doctorstax.co.uk'