Tax Code Guide
500L
Tax Code 500L Explained
What does this code mean?
500L means your tax-free Personal Allowance has been reduced to just £5,000 — less than half the standard amount. This is a significant reduction and you should carefully check your HMRC coding notice (P2) to understand why. Common reasons include very high-value company benefits, large prior-year underpayments, or state pension with other income.
Who gets this code?
Employees with very high-value benefits, significant underpayments, or those receiving state pension alongside employment income.
Is it correct?
Check your latest P45 or Payslip to see if this matches your current situation.