The PAYE Notice of Coding, also recognized as the P2 form, is essentially a notification from HMRC that provides your designated tax code and elaborates on why this specific code was assigned to you. It's crucial to ensure the accuracy of the tax code listed on your Notice of Coding, along with verifying all the detailed information it contains, to avoid any tax discrepancies.
For the tax year 2023/2024, the most prevalent tax code is 1250L, but there exists a range of other codes, each signifying different tax situations. Your tax code is instrumental in the PAYE system, guiding your employer on the amount of tax to deduct from your salary. An incorrect tax code could lead to either overpaying or underpaying your tax, thus it's vital to review and confirm its correctness.
