“When you receive a tax coding notice through the post, you should also receive a breakdown on the back of the letter which details the information that has informed the tax coding notice. This may include underpaid tax from previous years or details of other income that has been taken into account, which could include pension income or income you receive from other employment. It is always worth checking this and contacting HMRC if there are any corrections required.

 

“The numbers in your tax code relate to how much tax-free income you get in the financial year that the employment and tax code relates to. The L at the end means that you receive the standard tax free allowance for the year. This suggests that you have other income for the tax year that will use up some of your personal allowance. In this example, the amount that will be tax free for this employment will be £2,180.”