Tax free Personal allowances

Tax codes followed by the letter L represent the size of tax free personal allowance on earnings. This is the total amount of money, per year, one can earn tax free. The number attached to them represents tax free earnings divided by 10. In the tax year 2009/2010 the standard tax free allowance on income is £6475, which means the standard code, and the emergency tax code is 647L. Persons over 65 and 75 have an increased personal allowance.
Tax free Personal allowances can only be taken once across earnings. A second job or a job with a pension is taxed at a basic rate of 20%, or the tax allowance can be split across both sources of income.
Other tax codes can represent a basic rate of tax which doesn’t include a tax allowance (BR), all income taxed at the higher rate (D0), an exemption from paying tax (NT) or an amount of taxable allowance to be added from other sources of income (K).