How do I change my PAYE tax code?
Answered 11 March 2026
Here is a comprehensive answer based on the available source documents:
How to Change Your PAYE Tax Code
What the law says
Under the Income Tax (Pay As You Earn) Regulations 2003, there is a specific legal mechanism for changing a tax code:
-
If your code is wrong, HMRC may amend it on its own initiative, and must amend it if required by the employee: "The Inland Revenue may, and if required by the employee must, amend the code by reference to the actual circumstances" — this applies where the code is found to be inappropriate because actual circumstances differ from those on which it was originally determined.
-
If you object to your code, you must state the grounds of objection. HMRC may then amend the code by agreement with you. If no agreement is reached, you may appeal by giving notice to HMRC, and ultimately the tribunal will determine the correct code.
-
HMRC must notify you of any amended code, except where the change is solely due to alterations in personal relief rates or tax tables, or where your PAYE income becomes non-taxable.
-
Notice of a code change can be given electronically, in writing, or by telephone.
HMRC guidance / practice
-
A tax code is issued to give allowances and reliefs against PAYE income. Rates and amounts can change annually following the Budget.
-
You must normally make a specific claim to a relief before HMRC can include it in your code: "An individual must normally make a specific claim to a relief before you can give the relief in the code."
-
When a code is changed, HMRC will issue a revised P2 (Coding Notice) to inform you of the new code.
-
More information on understanding your coding notice is available at HMRC's website (e.g.
www.hmrc.gov.uk/incometax/codes-basics.htm).
Practical steps to request a change
Based on the legal framework above, to change your PAYE tax code you should:
- Contact HMRC — by phone, in writing, or electronically — to notify them that your code is incorrect and state the actual circumstances (e.g. a change in income, a new allowance you are entitled to, or removal of an incorrect deduction). HMRC is legally obliged to amend the code if you require it and the circumstances justify it.
- Claim any relief you believe you are entitled to, as reliefs generally require a specific claim before they can be coded.
- If HMRC does not agree, you may formally object (stating your grounds) and ultimately appeal to the First-tier Tribunal.
⚠️ Note: The available sources do not include specific HMRC public-facing guidance on using the Personal Tax Account online service to update a tax code. For step-by-step digital instructions, you may wish to visit www.gov.uk/check-income-tax-current-year or contact the HMRC Income Tax helpline directly.
Citation sources
h as you can off the arrears still owing. We will look at your class 2 NICs arrears later this year and decide if we will be able to have this collected through your tax code and if the arrears are passed to a DCA. 7. Will coding out impact any claims to benefit? If we collect the class 2 NICs you owe through your tax code then it will not be available to be used in benefit calculations until after the end of the tax in which it is collected. This will be after the deductions have been checked a
t 2007 ; or ii in the tax tables; c the employee’s PAYE income is not chargeable to tax; or d the employee does not have a liability to tax in respect of any PAYE income. Appeals and amendment Objections and appeals against employee’s code 18 1 An employee who objects to the determination of a code must state the grounds of objection. 2 On receiving the notice of objection the Inland Revenue may amend the determination of the code by agreement with the employee. 3 If the Inland Revenue and emplo
t. The separate payment made will flow through to the PAYE service and will either: cause a reduction in the customer’s tax code and the customer will receive a revised P2 refund the overpayment via the PAYE service to the customer after the account has been reconciled if it is too late to adjust their tax code. 17. Why do I have a debt collection agency chasing me for a class 2 NIC debt, when some of the debt has been coded out? Not all of the class 2 NIC debt will necessarily be coded out as
A code is issued to give allowances and reliefs against PAYE income. The rates and amounts of allowances can change annually and are announced by the Chancellor in the Budget. The Scottish Government has been able to set their own income tax rates from 6 April 2016. They have to use the same Personal Allowance but can change the percentages and, from April 2017, the number of tax bands. Where Scottish income tax is applicable the tax code will have an S prefix e.g. S1100L, SBR, S0T, SD0, SD1 and
Citation, commencement and effect 1 1 These Regulations may be cited as the Income Tax (Pay As You Earn) (Amendment) Regulations 2015 and come into force on 29th January 2015. 2 Regulation 2(5) and (6) only has effect in relation to returns filed on or after 6th March 2015. Amendment of the Income Tax (Pay As You Earn) Regulations 2003 2 1 The Income Tax (Pay As You Earn) Regulations 2003 are amended as follows. 2 In regulation 2(1) (interpretation) , in the definition of “notice”, for sub-parag