If you are reading this blog, you must be willing to know the 1263L tax code meaning, if this is the case you are reading the right blog, as in this blog we are going to offer you all the details that you need to know. However before we will move to the 1263L tax code, you should know how you can find your tax code, so we will begin the blog with it.
How can you find your tax code?
Your tax code is what tells your employer how much your income tax is supposed to be deducted from your wages, here are some of the places where you can find your tax code.
- On your pay slip
- Visiting HMRC application
- Checking P60 or P45
- Accessing your HMRC tax account using your government gateway ID and password
It is suggested that you check your tax code regularly especially when you have a new employer or if you are newly employed after self-employment as it is common then to put on an emergency tax code.
What is the meaning of Tax Code 1263L?
Now, we will come to our original question which is about the meaning of ‘1263L Tax Code 1263L’. It is actually a good thing as this means that you do not owe any additional taxes to HMRC and that your tax-free personal allowance has been increased.
The 1263L tax code is quite similar to the standard tax code 1257L, but it means that you earn £12,630 before you actually start paying income tax and this can save you up to £60.
Why was your tax code changed to 1263L?
Your tax code will automatically change to tax codes 1263L, as soon as you are eligible for HMRc’s flat rate expenses for the maintenance and costs of a work uniform. This indicates that you are getting tax relief which means you will pay less tax in order to cover the upkeep of the uniform you are supposed to wear for the work.
How can you apply for the 1263L Tax code?
You are supposed to apply to HMRC through the P87 form for tax code 1263L, and once your application has been approved you will receive confirmation about the same from HMRC that your tax code is now changing. You would not need to apply for it every year and it will remain unchanged unless you reach out to HMRC to change it.
Source: https://accountingbyte.com/