Tax Codes
500T Tax Code: What It Means and Why You Have It
A 500T tax code gives you a tax-free allowance of £5,009 for the year. The T means HMRC needs to review other items that affect your allowance.
Last reviewed 10 November 2026 · Written by the Right Choice Consulting team
What does 500T mean?
In a tax code, the number is your tax-free allowance divided by 10, with a standard adjustment. The code 500T therefore represents an allowance of £5,009, much less than the £12,570 standard Personal Allowance.
| Part | Meaning |
|---|---|
| 500 | £5,009 allowance |
| T | Your allowance includes other calculations HMRC needs to make |
Why would you have a 500T code?
The T suffix is used when HMRC applies other adjustments to your allowance, for example when your Personal Allowance is reduced because of high income, or when other taxable income, benefits or underpaid tax have been taken into account. A lower figure suggests the allowance has been reduced.
Is 500T right for you?
- Check what income and benefits HMRC thinks you have in your personal tax account.
- Compare them with your real figures.
- If anything is out of date, such as a benefit you no longer receive, tell HMRC so the code is updated.
Getting the code fixed
HMRC issues a new code to your employer or pension provider once it has the corrected information. If you were overtaxed, the extra is normally returned through payroll or by HMRC.
Sources
This article is general information based on UK rules as understood at the review date above. It is not personal tax or legal advice. Rates, thresholds and rules change; confirm the position for your situation with an accountant or on GOV.UK.