Tax Code 653L

Everyone that works in the UK has a tax code. Your tax code reflects any allowance that you are entitled to or any benefits that you are given, such as a company car. If you know how your tax code works you can easily see if you are paying the correct amount of tax and avoid having to pay any tax back… you may even be due a tax rebate!

What does Tax Code 653L mean?

Most tax codes work in the same way. Take the number from the tax code, in this case ‘653’ and multiple by 10:

653 x 10 = £6530.

This is your tax allowance, the amount that you can earn before you need to pay any tax.

How does the tax code work

Your tax code lets your employer know how much of a tax allowance you have. Instead of giving you this allowance in one lump sum, your employer will evenly distribute in your pay each month.

Why has my tax code changed

Often the Inland Revenue changes the tax free allowance. Usually, each year it increases so that you can earn more before you need to pay any tax. Because of this change in the tax allowance you may see a change to your tax code.

Stopping Work

If you stop working part way through the tax year you may not receive your full tax free allowance. If this happens you can claim a tax rebate from the Inland Revenue.

11 comments

  1. Lukasz says:

    I used to have tax code 810L, now I received a letter saying it’s gonna be 653L. My question is why?

    • TaxFix says:

      Lukasz: You can ask HMRC to provide a breakdown of your tax code which you can then reconcile. Usually a reduction in your tax code will be because of an allowance or because you might have an income from another source like a pension.

  2. Elma England says:

    My Husband pays £1200 a MONTH maintanence to his wife for his 2 children, has done for 2 years. Should she be paying tax, she has also re married and living with a high wage earner.

  3. steve says:

    my tax code this week went from 653L to 753L why was this.

  4. nick says:

    what is 753L tax code

  5. Anna Bittle says:

    Could you please let me know how the tax rebate system works, I have never had a tax rebate since starting work, is this correct?

    • TaxFix says:

      Anna Bittle: You are only due a tax rebate if you have overpaid tax. Most people if they have had a job with no gaps usually pay the right amount of tax. If you change jobs, are put on the wrong tax code or leave the UK, you can usually make a claim. You can check using our tax rebate calculator if you are due a tax rebate.

  6. ann marshall says:

    how much tax per pond do i pay on tax code 653L

  7. James says:

    How do I know if I am on the right tax code? I seem to be getting taxed 28/29%!

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