be the case in your situation. The tax code is made up of several numbers and letters. The current tax code for most people who have one job is 1257L. The numbers in the tax code tells the umbrella company how much tax free income you get in a tax year. The tax code is provided by HMRC who works out your individual number based on your tax-free personal allowance and income you have not paid tax on (such as a second job or untaxed interest). The letters in your tax code refer to your situation and how it affects your personal allowance. The most common tax codes are:
L – You are entitled to the standard tax-free Personal Allowance
M – Marriage allowance where you’ve received a transfer of 10% of your partner’s personal allowance
BR – All your income from this job is taxed at the basic rate
DO – All your income from this job is taxed at the higher rate
If your tax code has “W1”, “M1” or “X” at the end then you are on an emergency tax code.
A number of umbrella companies no longer process expenses unless they have been expressly agreed with the agency and the funds for these expenses are being forwarded by the recruitment agency.
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