1257L
Standard tax code for most employees with one job
Personal Allowance: £12,570
1257L M1
Emergency monthly tax code - not cumulative
Check with HMRC
BR
All income taxed at 20% basic rate (no allowance)
Personal Allowance: £0
D0
All income taxed at 40% higher rate
Used for second job
1185L
Reduced allowance (benefits in kind or underpayment)
Personal Allowance: £11,850
K475
Deductions exceed allowance - extra tax collected
Extra taxable: £4,750
S1257L
Scottish taxpayer with standard allowance
Scottish tax rates apply
C1257L
Welsh taxpayer with standard allowance
Welsh tax rates apply
Understanding Your Tax Code
Your tax code tells your employer how much tax to deduct from your pay. It's based on your Personal Allowance and any adjustments HMRC has made.
How Tax Codes Work
A standard tax code like 1257L consists of:
- Numbers (1257): Multiply by 10 to get your tax-free amount (£12,570)
- Letter (L): Indicates the type of Personal Allowance you receive
Why Your Tax Code Might Change
- You start receiving company benefits (car, medical insurance)
- You owe tax from a previous year
- You claim Marriage Allowance
- Your income exceeds £100,000 (Personal Allowance reduces)
- You start a second job
- You start receiving State Pension
Signs Your Tax Code May Be Wrong
- You're paying significantly more or less tax than expected
- You have an emergency tax code (BR, 0T, W1, M1)
- The numbers are much higher or lower than 1257
- You've recently changed jobs and tax seems incorrect
- Benefits in kind listed on your code have ended
How to Fix a Wrong Tax Code
- Check your Personal Tax Account - Sign in at GOV.UK to see your current tax code and what's included
- Review the breakdown - See what allowances and deductions make up your code
- Update incorrect information - Tell HMRC about changes to jobs, benefits, or marriage status
- Contact HMRC if needed - Call 0300 200 3300 or use online chat
- Wait for your new code - HMRC will send an updated code to your employer
If you've overpaid tax due to a wrong code, you can claim a refund. HMRC usually processes refunds within 5 weeks.
Frequently Asked Questions
What does 1257L tax code mean?
1257L is the standard tax code for 2025/26 in England, Wales, and Northern Ireland. The numbers (1257) represent your Personal Allowance of £12,570 (add a zero to the end). The L means you're entitled to the standard tax-free Personal Allowance. Most employees with one job and no benefits in kind should have this code.
How do I know if my tax code is wrong?
Signs your tax code may be wrong: (1) You're being taxed on all income with no tax-free amount (emergency tax codes like BR, 0T), (2) The numbers are much higher or lower than 1257, (3) You have benefits in kind that have ended, (4) You've started a new job and previous pay wasn't reported correctly, (5) Your P60 shows significantly more tax than expected.
What tax code letters mean?
Common tax code letters: L = Standard Personal Allowance (most common), M = Marriage Allowance transferred to you, N = Marriage Allowance transferred to partner, T = HMRC needs to review, BR = All income taxed at 20% (no allowance), D0 = All income taxed at 40%, D1 = All income taxed at 45%, NT = No tax, K = Deductions exceed allowance, S = Scottish tax rates, C = Welsh tax rates.
Why is my tax code not 1257L?
Your tax code might differ from 1257L because: (1) You receive company benefits (car, medical insurance) reducing your allowance, (2) You owe tax from previous years, (3) You have Marriage Allowance, (4) You have multiple jobs, (5) You receive State Pension, (6) You're on an emergency tax code, (7) You're a Scottish or Welsh taxpayer (S or C prefix), (8) Your income exceeds £100,000 (reduced Personal Allowance).
How do I fix my tax code?
To fix a wrong tax code: (1) Check your Personal Tax Account on GOV.UK, (2) Update your employment details if they're incorrect, (3) Tell HMRC about changes like new job, company benefits, or marriage, (4) Contact HMRC directly via phone (0300 200 3300) or online chat, (5) Your employer will receive an updated tax code automatically once HMRC processes the change.
What is an emergency tax code?
Emergency tax codes (like 1257L W1, 1257L M1, BR, or 0T) are used when HMRC doesn't have enough information about your income. W1/M1 means tax is calculated per pay period rather than cumulatively. BR means all income is taxed at 20% with no Personal Allowance. Emergency codes are temporary until HMRC receives correct information.