Key facts
- Standard code 1257L reflects the £12,570 Personal Allowance
- The number in your code is your tax free pay divided by ten
- BR, D0, and D1 tax all pay from that source at a flat rate with no allowance
- Emergency codes ending W1, M1, or X are non cumulative and often temporary
Check your take home with the salary calculator, see codes on a payslip in our payslip guide, and model a second job with the second job tax calculator.
| Code | Meaning |
|---|---|
| 1257L | Standard Personal Allowance of £12,570 |
| BR | All income taxed at basic rate (20%), no allowance |
| D0 | All income taxed at higher rate (40%) |
| D1 | All income taxed at additional rate (45%) |
| 0T | No Personal Allowance, often temporary |
| K | Deductions exceed allowance, tax added to pay |
| M | Marriage allowance received from spouse |
| N | Marriage allowance given to spouse |
| NT | No tax deducted from this income |
| 1257L W1 / M1 | Emergency non cumulative code |
Source: GOV.UK Tax codes, verified June 2026.
How a tax code is built
A tax code has a number and one or more letters. The number shows how much tax free pay you get in the tax year, divided by ten. Code 1257L means £12,570 tax free, because 1257 multiplied by ten equals £12,570.
The letters describe your situation: whether you get the standard allowance, whether all pay from that job is taxed at a flat rate, or whether HMRC needs to add income (such as taxable benefits) to your pay before calculating tax.
The standard code 1257L
For most employees in 2026/27, 1257L is the default code. It gives you the full £12,570 Personal Allowance spread across the year through PAYE. The first £12,570 you earn is tax free, and income above that is taxed through the normal bands.
On a £35,000 salary with code 1257L, you pay no tax on the first £12,570 and 20% basic rate on £22,430, giving about £4,486 income tax for the year.
Common letters explained
L: standard Personal Allowance
L means you receive the standard Personal Allowance with no special adjustments. This is the letter on code 1257L for most UK taxpayers in England, Wales, and Northern Ireland.
BR: all income from this source taxed at basic rate
BR taxes every pound from that employment at 20% with no Personal Allowance. It is common on a second job when your allowance is already used on your main employment. See the second job tax calculator for a worked example.
D0 and D1: all income taxed at higher or additional rate
D0 taxes all pay from that source at 40%. D1 taxes all pay at 45%. HMRC uses these when your total income is expected to sit in a higher band and your allowance is already allocated elsewhere.
0T: no Personal Allowance
0T means no Personal Allowance is applied to that income. It is often temporary while HMRC gathers information, such as when you have multiple jobs or complex income sources.
K: deductions such as benefits are larger than your allowance
A K code works in reverse. Taxable benefits or owed tax are larger than your allowance, so an amount is added to your taxable pay rather than deducted. You may see a K code if you receive a company car, private medical insurance, or other taxable benefits.
M and N: marriage allowance received or given
M means you receive marriage allowance from your spouse or civil partner, so your code includes extra tax free pay. N means you have transferred part of your allowance to your partner.
NT: no tax taken
NT tells the employer not to deduct income tax. It is used in specific circumstances where HMRC has confirmed no PAYE tax is due on that income source.
Emergency tax codes
Codes ending in W1, M1, or X are non cumulative. Your employer taxes each pay period on its own rather than looking at your earnings across the tax year so far. You might see 1257L W1 or 1257L M1 when you start a new job before HMRC has your full details.
Emergency codes often mean too much tax is taken in early months, especially if your pay varies. Once HMRC updates your code to a cumulative one, any overpayment is usually corrected automatically.
Scotland and Wales
Scottish taxpayers have an S prefix on their code, such as S1257L, and pay Scottish income tax bands. Welsh taxpayers have a C prefix, such as C1257L. The number still reflects your tax free amount divided by ten, but the rates above the Personal Allowance follow Scottish or Welsh rules where applicable.
Use the region toggle on the income tax calculator to compare Scottish bands with the rest of the UK.
How to check your tax code and claim a refund
Sign in to your Personal Tax Account on GOV.UK to see your current tax code and what HMRC thinks your income will be. Compare it with your payslip and your circumstances, including benefits, second jobs, and pension contributions.
If your code was wrong, HMRC reconciles your tax after the year and refunds overpayments, often through an adjusted code or a direct rebate. For a full breakdown of deductions, see how to calculate take home pay UK.
Income Tax Calculator
Enter your salary and region to see how your tax code allowance translates into income tax by band.
Check at the start of each tax year
HMRC sends a coding notice when your allowance or circumstances change. Review it against your payslip in April and after any life change such as a new job, marriage, or company benefit.Related Calculators
Frequently Asked Questions
It is the standard 2026/27 code. The 1257 reflects the £12,570 Personal Allowance and L means you get the standard allowance.
All income from that source is taxed at the basic rate of 20%, with no Personal Allowance. It is common for a second job.
Codes ending in W1, M1, or X are non cumulative, often used when you start a job, and usually correct themselves once HMRC has your details.
It means deductions such as taxable benefits are larger than your allowance, so an amount is added to your taxable pay.
You get no Personal Allowance against that income, often a temporary code until HMRC has the right information.
Use your Personal Tax Account on GOV.UK or contact HMRC. Check it matches your allowance and circumstances.
Yes, HMRC reconciles your tax and refunds overpayments, often through an adjusted code or a rebate.
S means you are a Scottish taxpayer and C means you are a Welsh taxpayer, so the relevant bands apply.
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James Hartley is a CIMA qualified financial analyst and Founder and Lead Financial Analyst at WhatsUK, with 8+ years in UK tax, payroll, and compliance. He builds every calculator on WhatsUK and authors all editorial content, ensuring every figure is verified against official HMRC sources before publication.
Sources & Official References
- GOV.UK Tax codes- How tax codes work for 2026/27
- GOV.UK Income Tax rates and Personal Allowances- Personal Allowance of £12,570 for 2026/27
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Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.