Your tax code determines how much Income Tax your employer deducts from your salary. A single wrong digit can cost you hundreds of pounds per year — yet most people never check theirs. This guide explains every common UK tax code for 2026/27 and how to make sure yours is correct.
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Check My Tax Code →What Is a Tax Code?
A tax code is a combination of numbers and letters that tells your employer how much tax-free income (Personal Allowance) you're entitled to each year. HMRC issues your tax code based on information they hold about your income, benefits and circumstances.
Your employer uses this code to calculate how much tax to deduct from each payslip. If your code is wrong, you either overpay tax (and should claim a refund) or underpay (and will owe HMRC money, usually collected through a future tax code adjustment).
What Does 1257L Mean?
The most common tax code in the UK is 1257L. Here's how to read it:
1257 = Tax-free amount of £12,570 per year (the standard Personal Allowance)
L = You're entitled to the standard tax-free Personal Allowance
For 2026/27, the standard Personal Allowance is £12,570. This means you pay no Income Tax on the first £12,570 you earn. Earnings above this are taxed at 20% (Basic Rate) up to £50,270, then 40% (Higher Rate) up to £125,140, and 45% (Additional Rate) above that.
Tax Code Letters Explained
| Letter | Meaning | When Used |
|---|---|---|
| L | Standard Personal Allowance | Most employees with one job |
| M | Marriage Allowance received | You've received 10% of partner's allowance |
| N | Marriage Allowance transferred | You've given 10% to your partner |
| T | Other calculations | Complex tax situations |
| K | Owed tax > allowance | Untaxed income exceeds allowance |
| BR | Basic Rate (20%) | Second jobs |
| D0 | Higher Rate (40%) | Second jobs, high earners |
| D1 | Additional Rate (45%) | Income > £125,140 |
| NT | No tax | Very specific circumstances |
| 0T | No Personal Allowance | Emergency / high earner |
Common Tax Codes Explained
1257L — Standard Code
You have the full £12,570 Personal Allowance. Most employees start here. If your income exceeds £100,000, the number decreases as your allowance tapers.
BR — Basic Rate (20% on everything)
Used for second jobs. You pay 20% tax on all earnings because your Personal Allowance is used elsewhere.
D0 — Higher Rate (40% on everything)
Used when your total income from all sources exceeds £50,270. All earnings from this job are taxed at 40%.
K Code — You owe more than your allowance
A K code means your untaxed income (benefits, state pension, etc.) exceeds your Personal Allowance. The number after K is the additional amount to be taxed, divided by 10. For example, K500 means £5,000 of untaxed income on top of your salary.
OT — No Personal Allowance
All income is taxed. Used as an emergency code or for very high earners who've lost their entire Personal Allowance (income above £125,140).
Emergency Tax Codes
When you start a new job, HMRC may not have your details yet. Your employer will use an emergency tax code temporarily:
- 0T (Week 1 / Month 1) — No Personal Allowance, tax calculated only on current period
- BR (emergency) — 20% on all earnings
- 1257L W1/M1 — Full allowance but only applied to current pay period, not cumulatively
Emergency tax usually results in overpaying tax. HMRC will automatically refund you or adjust your code once they have your correct information.
How to Check Your Tax Code
You can find your tax code on:
- Your most recent payslip (usually labelled "Tax Code" or "TCode")
- Your P45 (from a previous employer)
- Your P60 (annual tax summary from your employer)
- Your HMRC Personal Tax Account (online)
- A PAYE Coding Notice letter from HMRC
What If My Tax Code Is Wrong?
Contact HMRC on 0300 200 3300 with your National Insurance number. You can also update your details through your Personal Tax Account.
If you've overpaid, HMRC will either send a refund (P800) or adjust your tax code to give you the money back gradually. If you've underpaid, they'll usually collect it through your tax code over the next tax year.
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