Tax Code Guide
250L
Tax Code 250L Explained
What does this code mean?
250L gives you only £2,500 of tax-free income. Almost all your Personal Allowance has been used up by deductions. This extreme reduction usually means HMRC is collecting a large amount of tax on untaxed income or benefits. Check your P2 coding notice carefully — this level of reduction sometimes indicates an error.
Who gets this code?
People with extreme benefit adjustments or large prior-year underpayments. May be worth checking with HMRC if this is correct.
Is it correct?
Check your latest P45 or Payslip to see if this matches your current situation.