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Rights at work

Your rights at work will depend on:-

your statutory rights (see below), and

your contract of employment (see below).

Your contract of employment cannot take away rights you have by law. So if, for example, an employee has a contract which states they are only entitled to two weeks paid holiday per year, when by law all employees are entitled to four weeks paid holiday per year, this part of the contract is void and does not apply. The right the employee has under law (to four weeks holiday in this case) applies instead.

Statutory rights

Statutory rights are legal rights based on laws passed by Parliament.

Nearly all workers, regardless of the number of hours per week they work, have certain legal rights.

Sometimes an employee only gains a right when they have been employed by their employer for a certain length of time, and when this applies, the length of time before the employee gains the right is listed below. Statutory rights which all employees have (except those who are not covered - see below) are:-

• the right to a written statement of terms of employment within two months of starting work,

• the right to an itemised pay slip. This applies from the day the employee starts work.

• the right to be paid at least the national minimum wage. This applies from the day the employee starts work.

• the right not to have illegal deductions made from pay. This applies from the day the employee starts work.

• the right to at least four weeks paid holiday per year .

• the right to time off for trade union duties and activities. This applies from the day the employee starts work. The time off does not necessarily have to be paid. Employees also have the right to be accompanied by a trade union representative to a disciplinary or grievance hearing. If an employee takes part in official industrial action and is dismissed as a result, this will be an automatically unfair dismissal

• the right to paid time off to look for work if being made redundant. This applies once the employee has worked for two years for that employer.

• the right to time off for study or training for 16-17 year olds. This applies from the day the employee starts work.

• the right to paid time off for ante natal care. This applies from the day the employee starts work,

• the right to paid maternity leave of 26 weeks and the right to return to work after this maternity leave. This applies from the day the employee starts work. If you have worked for 10 months or more for your employer, you will be entitled to additional maternity leave

• the right to paid paternity leave

• the right to paid adoption leave

• the right to ask for flexible working

• the right to take unpaid parental leave for both men and women (if you have worked for the employer for one year) and the right to reasonable time off to look after dependants in an emergency (applies from the day the employee starts work)

• the right under Health and Safety law to work a maximum 48 hour working week. This applies from the day the employee starts work

• the right under Health and Safety law to weekly and daily rest breaks. This applies from the day the employee starts work. There are special rules for night workers

• the right not to be discriminated against on grounds of sex, race, disability, sexual orientation, religion or belief. This applies from the day the employee starts work.

• the right to notice of dismissal, provided you have worked for your employer for at least one calendar month

• the right to written reasons for dismissal from your employer, provided you have worked for your employer for one year. Women who are pregnant or on maternity leave are entitled to written reasons without having to have worked for any particular length of time

• the right to claim compensation if unfairly dismissed. In most cases you will have to have worked for one year to be able to claim unfair dismissal

• the right to claim redundancy pay if made redundant. In most cases you will have to have worked for two years to be able to claim redundancy pay

• the right not to suffer detriment or dismissal for ‘blowing the whistle’ on a matter of public concern (malpractice) at the workplace. This applies from the day the employee starts work

• the right of a part-time worker to the same contractual rights (pro-rata) as a comparable full-time worker

• the right of a fixed-term employee to the same contractual rights as a comparable permanent employee.

You may also have additional rights, which may be set out in your contract of employment.

Workers not entitled to certain statutory rights

Some workers are not entitled to some statutory rights. They are:-

• anyone who is not an employee, for example, an agency or freelance worker. However, some workers are entitled to certain rights such as the national minimum wage, limits on working time and other health and safety rights.

• ome workers in the transport industry are not entitled to paid holidays or limits on their working hours by law and have to rely on their contract

• trainee doctors are not entitled to paid holidays and have to rely on their employment contract. They are also limited to working a 58 hour week, rather than 48 hours.

The National Minimum Wage

Who can get the National Minimum Wage?

In the UK, most workers aged 16 or over are entitled to a National Minimum Wage (NMW). The minimum wage covers you whether you are in a permanent job, working for an agency or on a short-term contract.

Some workers are not covered by the National Minimum Wage. These include:

• workers under the age of 16

• some apprentices

• au-pairs and nannies if they are living with a family and not paying for accommodation or meals

• self-employed people

• members of the armed forces

• voluntary workers

• some trainees on government schemes.

For a full list of who is not entitled to the NMW, contact the NMW helpline or an experienced adviser. See below for details of the NMW helpline.

How much is the National Minimum Wage?

There are four different rates of pay under the National Minimum Wage:

• for workers aged 22 and over, the current rate of pay is £5.05 per hour

• for workers aged 22 and over on the trainee rate of NMW, the current rate of pay is £4.25 per hour

• for workers aged between 18 – 21, the current rate of pay is £4.25 per hour

• for workers aged 16 (who are above school leaving age) and 17, the current rate of pay is £3.00.

The NMW is an average hourly rate, which must be paid for each hour worked over a certain period of time. If you are paid weekly, this period of time is a week, and if you are paid monthly, the period is a month. As long as your average pay an hour is not below the NMW during this period, you may earn less than the NMW for some hours.

Your employer is not paying you the National Minimum Wage

If you think you should be getting the NMW but aren't, you can ask your employer to tell you why not. It may be that your employer did not realise they were not paying the NMW. Your employer can get information from the NMW helpline (see Further help at the end of this fact sheet). If you are a member of a trade union, you could ask for advice from your representative.

If your employer will not talk about the NMW, or you don’t feel able to approach them, you can contact the NMW helpline or talk to an experienced adviser (see Further help at the end of this fact sheet).

If you think your employer is aware of the NMW and is not paying it, you can contact the NMW helpline who will tell the NMW enforcement agency. This agency is run by HM Revenue and Customs and can investigate employers who do not pay NMW to their workers. If you do not want your employer to know that you have contacted the NMW enforcement agency, you must tell them that you want to remain anonymous. In some cases, reporting an employer can lead to bullying or unfair treatment at work.

You can also enforce your right to get the NMW by making a claim for unlawful deduction of wages to an employment tribunal. If you are an employee, you will need to raise a written grievance with your employer first (you are unlikely to be an employee if you are a subcontractor, freelancer or casual worker). There are strict time limits for taking a case to an employment tribunal which you must make sure not to miss. You should get advice from an experienced employment adviser or solicitor (see below). You cannot be forced to agree to a wage, which is lower than the NMW. If your employer has tried to force or persuade you to sign an agreement, which gives you less than the NMW, this agreement will not be legally binding.

What you can do if you are bullied or dismissed for complaining about NMW

If you feel you are being bullied or unfairly treated at work, or if you have lost your job because you reported your employer, you may be able to complain to an employment tribunal, or to sue your employer for breaking your contract of employment (breach of contract). You should not think about doing either of these things without talking to an experienced adviser or employment solicitor first (see below). If you want to stay in your job, you also need to think about the effect that taking this kind of action might have on your relationship with your employer.

There are strict time limits for making a complaint to an employment tribunal, which you must make sure that you do not miss.

Further help

National Minimum Wage Helpline

For information about the NMW (and as a first step in contacting the enforcement agency), there is an NMW helpline, staffed by HM Revenue and Customs. The number is: 0845 600 0678 (local rates apply) (Minicom 0845 915 3296).

Department of Trade and Industry website

A website has been set up by the Department of Trade and Industry (DTI) to provide guidance on employment rights. The website provides guidance about how the NMW works. The website address is www.direct.gov.uk/Employment .

TUC website

The TUC has launched an online minimum wage calculator to help work out whether you are being paid the NMW. The calculator can be found on the TUC's worksmart website at www.worksmart.org.uk.

Sickness at work

Will you get paid for time off work if you are sick?

If you are off for four days in a row or more and you earn more than £84 a week, you will be entitled to statutory sick pay (SSP). SSP is money paid by employers to employees who are away from work because they are sick. It is the minimum amount you can be paid you when you are off work because you are sick. Your contract of employment may give you extra rights to more sick pay than this (contractual sick pay). You should check your contract to see what you are entitled to.

To qualify for SSP you must be a worker aged between 16 and 65. This includes agency workers, workers on fixed-term contracts and part-time workers. SSP can last for up to 28 weeks. Contractual sick pay may last for longer. You will need to check your employment contract to see if this applies to you.

If you cannot get SSP, or if you have been off sick for more than 28 weeks, your employer will give you form SSP1 and tell you why. You can use form SSP1 to claim incapacity benefit from your local benefit office if you are not entitled to either SSP or contractual sick pay.

How much sick pay will you get?

You will be paid either SSP, or, if your contract of employment gives you more pay when you are off sick, you will be paid what it says in your contract. This might not be your normal rate of pay, but it should not be less than SSP.

You cannot get SSP for the first three days you are off sick. For these three days you will only be entitled to sick pay if your contract of employment allows for it. After this, you should get the daily rate of SSP for each day you are off sick when you would normally be working.

SSP is paid at a fixed weekly rate of £70.05. This should be divided by the number of days that you work, so, for example, if you only work three days a week, your daily rate of SSP would be £23.35.

If SSP is your only income whilst you are off sick you may be able to claim other benefits such as housing benefit. To find out what benefits you may be entitled to, see Further help at the end of this fact sheet.

Telling your employer you are off sick

If you can, you should tell your employer straight away that you are ill and unable to go to work. You may lose sick pay if you don't do this (see below). Your employer may have rules about what to do if you cannot come to work because of illness. They can, for example, insist that you tell them you are ill on the first day that you cannot go into work. Your employer must let you know what these rules are in advance. You will have to keep to the rules if you want to get all the sick pay you are entitled to.

If you are only getting SSP (£70.05 a week) and no contractual sick pay, there are some things your employer is not allowed to do. Your employer cannot, for example:

• ask you for a medical certificate until your eighth day of illness

• say you must phone in by a certain time of day to tell them you are sick

• say you must phone in more than once a week when you are off sick

• say you must phone in yourself, and not allow someone else to do it on your behalf.

However, your employer can make rules like these about the payment of any contractual sick pay you are entitled to.

Can your employer refuse to pay you if you are off sick?

You are off sick because of a disability

If you are disabled and your employer refuses to give you sick pay when you are off sick for a reason connected with your disability, your employer could be breaking the law. You may be able to make a complaint to an employment tribunal for unfair treatment because of your disability (disability discrimination), but you may have to raise a written grievance with your employer first. You should get help from an experienced adviser (see Further help at the end of this fact sheet).

You do not call in sick straight away

If you do not tell your employer that you are off sick straight away you could lose some or all of either SSP or contractual sick pay, unless you have a good reason for not telling them. Your employer can refuse to pay you contractual sick pay for the days you are off and do not call in sick.

You are off for several short periods of time

If you are off sick for more than four short periods (four to seven days) in a year, your employer can contact Medical Services to look into the reasons you have given for missing work. Medical Services are contacted by your employer through HM Revenue and Customs (HMRC). They may contact your doctor to ask for information about your illnesses. Medical Services cannot contact your doctor unless you give them permission to do so. If the Medical Services report says you have been off work without good reason, your employer may refuse to pay you SSP. You can appeal against this decision if you think it is wrong.

You are off for long periods of time

If you have long periods of time off work, your employer can contact Medical Services to decide if you are fit enough to do your job. If the Medical Services report says you have been off work without good reason, your employer may refuse to pay you SSP. You can appeal against this decision if you think it is wrong.

What you can do if your employer won't pay you SSP

If you think you should be getting SSP but your employer won't pay it, they should give you a statement on form SSP1 explaining why. You should also use this form to claim Incapacity Benefit (IB), and make it clear that you want HMRC to consider your entitlement to SSP. You should send the form to your local Department for Work and Pensions (DWP) Office.

If the DWP is unsure about your entitlement to SSP, it will forward a copy of your form to HMRC's national insurance contributions office. To be on the safe side, you should send a copy of your form to your local national insurance contributions office yourself (any local HMRC office will be able to give you the address).

If your employer refuses to give you form SSP1, you should apply in writing for a decision to your local national insurance contributions office and claim IB from the DWP. HMRC's decision is legally binding on your employer. You both have the right to appeal against this decision.

If you are entitled to SSP and your employer refuses to pay, you can make a claim for unlawful deduction of wages to an employment tribunal. You must raise a grievance with your employer first.

HMRC can fine an employer who repeatedly fails to pay you SSP.

You are off sick whilst you are away on holiday

If you become ill while you are on holiday leave you may be able to get time off at a later date to make up for losing your holiday, if your contract of employment allows for this. If this applies to you, you should get SSP while you are sick.

If you become ill while on holiday and your employment contract does not allow you to take time off at a later date, you should get a mixture of SSP and holiday pay to make up your wages to your normal amount of pay.

You are dismissed for taking time off sick

If you are dismissed while you are receiving SSP, your employer must give you form SSP1. This explains why SSP is no longer being paid. You should complete the form and take it to your local benefit office to claim either incapacity benefit or income support. If you believe you have been dismissed because of you are ill, or because you have asked for SSP, you may be able to complain to an employment tribunal. You should talk to an experienced employment adviser straight away. See below for details.

You are dismissed because of your disability

If you are disabled and your employer dismisses you for taking time off sick for a reason connected with your disability, your employer could be breaking the law. You may be able to make a complaint to an employment tribunal for unfair treatment because of your disability (disability discrimination). You may have to raise a written grievance first. You should get help from an experienced adviser.

Maternity rights at work

Who is entitled to take maternity leave?

Most women are entitled to take time off work to have a baby. This time off is called maternity leave. It is your right to take maternity leave no matter how long you have worked for your employer.

If you are in one of the following jobs, some of the information in this fact sheet may not apply to you. You will need to check your contract of employment to see what maternity rights you have at work:-

• women in the police force (not civilian employees)

• women in the armed forces

• share fisherwomen.

How much maternity leave can you take?

There are two types of maternity leave. If you are entitled to take maternity leave, you may be able to get either:-

• a minimum of 26 weeks off work. This is called ordinary maternity leave; or

• 26 weeks ordinary maternity leave plus an extra 26 weeks making a total of 52. This is called additional maternity leave.

To qualify for additional maternity leave you need to have worked for your employer for at least 26 weeks at the beginning of the 14th week before your baby is due.

Your contract of employment may give you extra rights to maternity leave, but it cannot give you less than the law allows. If your contract says you have less rights than the law allows, you will still be entitled to take the maternity leave described above.

When maternity leave begins and ends

When will your leave begin?

You can begin your maternity leave at any time from, the 11th week before your baby is due. If you want, you can work right up to the day your baby is born.

If you have an illness that is connected to your pregnancy in the four weeks before the baby is due, your maternity leave may have to start from that date.

When will your leave end?

If you are taking ordinary maternity leave, it will finish at the end of the 26th week after it began. If you are taking additional maternity leave it will finish at the end of the 52nd week after it began.

You do not need to tell your employer that you are returning to work unless you want to return earlier. You must give your employer at least 28 days warning if you want to return early.

When to tell your employer you want to take maternity leave

You must tell your employer, by the end of the 15th week before the baby is due, that:-

• you are pregnant

• the date your baby is due

• the date you want your maternity leave to start.

You must give your employer a medical certificate called a MATB1. You can get this from your midwife or GP. It gives the date your baby is due.

Once you have told your employer that you want to take maternity leave, they must write to you within 28 days and tell you the date you should come back to work.

Pay during maternity leave

If you have worked for your employer for at least 26 weeks at the beginning of the 15th week before your baby is due, you may qualify for Statutory Maternity Pay (SMP). To get SMP you must also earn at least £84.00 per week. SMP is paid for up to 26 weeks. You can get SMP even if you do not return to work after having your baby.

SMP is the minimum amount you should be paid, but your contract of employment may entitle you to more than this. Check your contract to see what you are entitled to.

If you don’t qualify for SMP you may be entitled to Maternity Allowance (MA). This is paid by the Department for Work and Pensions (DWP). You will qualify for MA if you have paid enough National Insurance contributions and earn an average of £30 per week or more. You must also have worked for at least 26 weeks out of the 66 weeks before the week your baby is due. You do not have to have worked for the same employer during this time and the 26 weeks do not need to have been worked in a row. You may get MA if you are self-employed.

How much will you be paid

If you are getting SMP, for the first six weeks of maternity leave you will get 90% of your usual gross weekly pay (that is, before tax and national insurance contributions are taken out). For the next 20 weeks you will get 90% of your gross weekly pay or £106 a week, whichever is the lowest amount.

If you are taking additional maternity leave, your SMP will finish at the end of 26 weeks. You should check your contract to see if you are entitled to pay after this.

If you are getting Maternity Allowance you will receive either £108.85 a week or 90% of your average weekly earnings, whichever is lower. This will be paid for 26 weeks.

Your employer refuses to pay you during maternity leave

If your employer refuses to pay SMP, or does not pay you what you think you should get, you can ask your employer to give you a letter explaining:-

• why they won’t pay you; and

• how they have worked out the amount you will get; and

• what weeks they are paying you for.

If you are still not happy with their decision you can ask an officer at the local HM Revenue and Customs office to decide who is right. HM Revenue and Customs can fine an employer up to £3,000 if they repeatedly fail to pay you SMP.

Unfair treatment at work because of pregnancy or maternity leave

You should not be treated differently at work because you are pregnant, or have just had a baby. For example, you should not be denied opportunities for promotion, or given different terms and conditions to those you had before. If you think you are being treated unfairly because you are pregnant or because of your maternity leave, you can make a complaint to an employment tribunal for sex discrimination. You may need to raise a written grievance with your employer first. You should get help to do this from a trade union representative if you have one, or from an experienced adviser (see below). There are strict time limits for complaining to an employment tribunal, and you should check that these do not run out before you make your complaint.

You are dismissed from work because of pregnancy or maternity leave

If you are dismissed from work because you are pregnant, have taken maternity leave or have just had a baby, you can make a complaint to an employment tribunal for unfair dismissal and for sex discrimination. It does not matter how long you have worked for your employer.

You must have told your employer that you are pregnant and, where possible, have given them a sick note as proof. You will also need to raise a written grievance with your employer first.

You should get help to complain to an employment tribunal from a trade union representative if you have one, or from an experienced adviser (see below). There are strict time limits for making a complaint, and you should check that you do not miss them.

Returning to work after maternity leave

In most cases, your employer must allow you to return to work after having a baby. All women must take at least two weeks off work after giving birth, or four weeks if you work in a factory.

If your employer refuses to let you return to work after maternity leave, this is a dismissal. You will be able to make a complaint to an employment tribunal for unfair dismissal and/or sex discrimination. However, you may have to raise a written grievance with your employer first.

The right to return to the same job after maternity leave

If you have taken 26 weeks Ordinary Maternity Leaven (OML), you have the right to return to the same job as the one you had before you went on leave. If your employer does not let you return to the same job, this is a dismissal, and you will be able to claim unfair dismissal and/or sex discrimination from an employment tribunal.

If you have taken Additional Maternity Leave as well as OML, you are entitled to return to the same job unless your employer says this is not reasonable. In this case, you should be offered another suitable job with the same pay and conditions as you had before maternity leave. If your employer does not offer you another suitable job, or offers you an unsuitable job and dismisses you when you refuse it, you will be able to claim unfair dismissal and/or sex discrimination from an employment tribunal (you may have to raise a written grievance with your employer first).

If you have taken AML and work for a firm employing less than 6 people, different rules apply. You are only entitled to return to the same job if it is practical for you to do so. If it is not, your employer may dismiss you without offering you a suitable alternative. However, you will still be able to make a claim for unfair dismissal and discrimination.

If you were working full time before your maternity leave, you may want to return to work part time, job share or on different hours. This is called flexible working. Your employer does not have to agree to let you do flexible working, but they must treat your request seriously. If you are refused, you may be able to make a claim for sex discrimination from an employment tribunal. If you go back to work part time, your terms and conditions of employment should not be changed without your agreement.

If they are changed, you may be able to make a claim for sex discrimination from an employment tribunal (you may have to raise a written grievance with your first).

Harassment and discrimination

It is unlawful to discriminate against a person at work because of their:-

• sex

• race

• disability

• colour

• nationality

• ethnic or national origin

• religion or belief

• sexual orientation.

Discrimination can be either direct or indirect. Direct discrimination occurs when a person is treated less favourably at work because of their sex, race, religion, sexual orientation or disability. For example, if an Asian employee is not selected for promotion because they are black, this is direct discrimination.

Indirect discrimination occurs where a particular employee cannot meet a requirement, which is not justifiable in terms of the work, and they are at a disadvantage as a result, for example, if the employer only gives training to full-time workers, this would indirectly discriminate against women, as most part-time workers are women.

Harassment is also a form of discrimination. Harassment can include verbal abuse, suggestive remarks and unwanted physical contact. You may also be discriminated against if you are victimised because you have tried to take action about by

After the meeting with you, or the appeal meeting if there is one, your employer must make a final decision about what they are going to do, and tell you what it is. If they are still going to dismiss you, your employer must tell you when the dismissal is to take effect, and how much notice they are giving you. They do not have to do this in writing, but it would be good practice to do so. Notice of dismissal must be given directly to you and not through a third party, for example your trade union.

If you are not happy with your employer's decision and you think your rights have been ignored, you may be able to take your case to an employment tribunal. You must comply with the dismissal and disciplinary procedure first. If you do not, any future award you get from a tribunal may be reduced. If your employer does not follow the proper procedures, a tribunal may decide they have acted unreasonably. This would mean you would have been unfairly dismissed.

Worker registration scheme and resident permit

Citizens from the eight Central and Eastern European accession countries (Poland, Check Republic, Slovakia, Slovenia, Estonia, Latvia, Hungary and Lithuania) currently working in the UK will need to register themselves with the Worker Registration Scheme (WRS) at the Home Office if they start a new job in the UK on or after 1 May 2004 or if they have been working illegally in the UK before 1 May 2004. Further information about the WRS can be obtained in Czech, Estonian, Hungarian, Latvian, Lithuanian, Polish, Slovakian and Slovenian languages from the website: www.workingintheuk.gov.uk

Those individuals who do not have to register under the Worker Registration Scheme include:

• those who are self-employed

• those who have been working with permission in the UK for 12 months or more without interruption

• those who have been working with permission in the UK for current employer since 1 May 2004

• those who have leave to enter the UK under the Immigration Act 1971 on 30 April 2004 and the leave was not subject to any conditions restricting their employment

• those who are providing services in the UK on behalf of an employer who is not established in the UK

• those who are citizen of the UK, another EEA state (other than one of the eight accession state subject to WRS) or Switzerland

• those who are a family member(spouse, civil partner, or child under the age of 21 or dependent) of a Swiss or EEA national (other then one of the eight accession states) who is working in the UK, is a student, self-employed, retired, or self-sufficient

Individuals from the new accession states will need to register under this scheme within one month of starting a new job. The application form should be completed and sent along with a letter and a contract from the employer confirming the employment, two passport photographs, one's passport or national ID card and payment of £70.

Successful applicants will receive by post a registration card and registration certificate (a copy of which will also be sent to the employer). If applicants stop working for the employer, the registration card and certificate will become invalid. If a new position is taken up, then a new registration certificate should be applied for. There is no fee for subsequent registration certificates.

Once employees from these countries have worked in the UK legally for at least 12 months, they will be able to apply for a residence permit, which will confirm their right to live and work in the UK and exercise their EU Treaty rights of free movement. To apply for resident permit please use form EEA1.

A registration card and certificate will no longer be required.

Further information is available on the website www.ind.homeoffice.gov.uk and by contacting the Immigration and Nationality Enquiry Bureau on 0870 6067766.

Tax – In England; The Pay As You Earn (PAYE) system

This information applies to England, Wales, Scotland and Northern Ireland

• What is the Pay As You Earn (PAYE) system

• How is PAYE calculated

• Emergency tax codes

• Notice of coding

• Self Assessment

• Change in circumstances

What is the Pay As You Earn (PAYE) system

The Pay As You Earn (PAYE) system is a method of paying income tax. Your taxpayer’s employer deducts tax from your wages or occupational pension before paying you your wages. Wages includes sick pay and maternity pay. This means that you pay tax over the whole year, each time you are paid. Your employer is responsible for sending the tax on to HM Revenue and Customs.

If you pay tax on your wages or occupational pension under PAYE, the PAYE system can also be used to collect the income tax of any other taxable income you have. For example, if you pay tax under PAYE on an occupational pension, the tax due on your state retirement pension is collected through PAYE by deducting tax from your occupational pension.

How is PAYE calculated

The tax office will tell your employer how much tax to deduct from your wages/occupational pension, but will not give details about how your code has been decided. If the tax office does not have enough information to issue a full tax code, it will use an emergency tax code until more information is received and the tax can be adjusted (see under heading Emergency tax codes).

Most PAYE codes are made up of a number followed by a letter:-

• the letter relates to the type of allowance(s) you are getting (see below)

• the number shows the amount of income you have as allowances which may be set against tax (see below).

The letter in the tax code

The letter in the tax code, which shows which tax allowances you are receiving, will be one of the following:-

L if you are aged under 65 and getting the personal allowance. You will be given this code if you are a single person, the person in a married couple or civil partnership who is not claiming the married couple's allowance, or, if you are a person who is being taxed on the emergency code.

P if you are single person, or a married woman, aged 65-74 who is entitled to the full age related allowance.

V if you are a married man aged 65-74; and

• your wife is aged 74 or less; and

• you are entitled to the full age related allowance; and

• HM Revenue and Customs estimate that tax will be paid at the basic rate.

T may be allocated for a number of reasons. These include:-

• where you request it, because you do not want to reveal your actual code; or

• where you are eligible for Child Tax Credit but pay tax at the higher rate; or

• you or your partner is aged 75 or over; or

• there is a reduced age-related allowance in the code.

K if you are someone whose untaxed income adds up to more than your personal tax allowances. If your untaxed income is from fringe benefits and/or pensions, interest or social security benefits you may be given a K code.

Y if you are aged 75 or over and have the full personal allowance.

NT if you do not have to pay tax. This code does not include a number.

BR if you have not been given any allowances and tax will be deducted at the basic rate. This code may be given where you have more than one job.

DO if you have tax deducted at the higher rate.

OT no allowances have been given or remain after other adjustments have been made. Tax will be paid at the lower, basic or higher rate, depending on the level of income.

The number in the tax code

The number in the tax code represents the total of all available allowances, less any amount to be deducted to cover other income or benefits.

If you are given a PAYE tax code it will be shown on:-

• a notice of coding sent by the tax office (see under heading Notice of coding); or

• your payslip; or

• your pension statement if you are getting an occupational pension.

Emergency tax codes

The tax office may not be able to give your employer a tax code to allow her/him to deduct the right amount of tax over the whole year. In this case, the tax office gives your employer an emergency code with which to tax you. An emergency code assumes that you are only entitled to the basic personal allowance and your PAYE tax code will include the letter L, which shows that you are only receiving this personal allowance. It does not take into account any other allowances and reliefs you may be entitled to.

You will stop being taxed on an emergency code:-

• when the tax office sends your employer (and you) a PAYE tax code, and details of previous earnings and tax paid for that tax year. This enables your employer to deduct the correct tax in future and refund any overpaid tax caused by the emergency code; or

• at the end of the tax year. Your employer will usually start deducting tax cumulatively, that is, when deducting tax your employer will take into account the amount of tax you have already paid. If, at the end of the tax year, you think you have paid too much tax because you have been taxed on an emergency code, you should claim a rebate by writing to the tax office.

Notice of coding

A notice of coding shows your tax code if you are going to pay through the PAYE system. The notice is usually sent out in January or February for the tax year beginning on the following 6 April. The code shown in the notice is given for that tax year only. The notes that come with the notice of coding explain how the code is worked out.

Not everyone gets a notice of coding each year. It depends on what allowances and reliefs you are claiming and whether these tend to change from year to year. It is important to check that the notice of coding gives the correct allowances and reliefs, because if it is wrong you will be paying the wrong amount of tax.

You should check carefully that you have been given all the allowances and reliefs that you are entitled to claim and that all your income has been taken into account.

Self Assessment

Under the system of Self Assessment, you have to assess how much tax you have to pay on any income which you receive which is not taxed through PAYE, for example:-

• income from renting out a room; or

• income from freelance work.

You must tell the local tax office if you receive taxable income in addition to that which you pay through PAYE. You will then have to complete a tax return form and either ask HM Revenue and Customs to calculate how much tax is due (Revenue calculation) or do the calculation yourself (taxpayer calculation).

If you owe £1000 or less in tax on sources of income which are not taxed through PAYE, and you send your completed tax return form back by the 30 September following the end of the tax year, you can pay all your tax through PAYE. If you owe more than this amount, or if you prefer, you can pay the tax due on the other sources of income directly to HM Revenue and Customs.

If you want to check that you are paying the right amount of tax, or, for example, if you think you may have over or underpaid tax, you should contact your local tax office and ask if you can complete a tax return form. Once you have completed the form you can either ask HM Revenue and Customs to calculate the amount of tax due, or do the calculation yourself.

Change in circumstances

If your circumstances change during the tax year, for example, you become entitled to a new allowance or incur a new outgoing, you must inform HM Revenue and Customs as soon as possible.

You cannot rely only on telling an employer of a change in circumstances. In fact, as an employer can do nothing until instructed by HM Revenue and Customs you do not have to inform your employer at all. You should write to your tax office with the details of the change.

If you require more help please consult a local tax office or an experienced adviser, for example, at a Citizens Advice Bureau.