United Kingdom tax codes: what your tax code means
Your tax code is made up of numbers and letters, and 1257L is the tax code currently used for most people who have one job or pension.
| Figure | Value |
|---|---|
| Most common tax code | 1257L is the tax code currently used for most people who have one job or pension. |
| What the numbers mean | The numbers in your tax code tell your employer or pension provider how much tax-free income you get from them in that tax year. |
| Letter L | You’re entitled to the standard tax-free Personal Allowance. |
| Letter T | Your tax code includes other calculations to work out your Personal Allowance. |
| Letter K | You have income that you are not paying tax on which is more than your Personal Allowance. |
| Letter BR | All your income from this job or pension is taxed at the basic rate. |
| Letter S | Your income or pension is taxed using the rates in Scotland. |
| Letter C | Your income or pension is taxed using the rates in Wales. |
| Emergency tax codes | You’re on an emergency tax code. |
What your tax code means
Your tax code is made up of numbers and letters. 1257L is the tax code currently used for most people who have one job or pension. GOV.UK, What your tax code means (opens in a new tab).
The numbers in your tax code tell your employer or pension provider how much tax-free income you get from them in that tax year. GOV.UK, What your tax code means (opens in a new tab).
HM Revenue and Customs (HMRC) will usually contact you to explain how they worked out your individual tax code if your tax code changes. GOV.UK, What your tax code means (opens in a new tab).
What the numbers mean
To work out your individual number, HMRC starts with your tax-free Personal Allowance and takes off any income you have not paid tax on, such as untaxed interest or part-time earnings, and other deductions in your tax code, such as company benefits or the High Income Child Benefit Charge. They then replace the final digit with a letter. GOV.UK, What your tax code means (opens in a new tab).
If you have a K in your tax code the calculation is different. GOV.UK, What your tax code means (opens in a new tab).
What the letters mean
0T: Your Personal Allowance has been used up, or you’ve started a new job and your employer does not have the details they need to give you a tax code. GOV.UK, What your tax code means (opens in a new tab).
BR: All your income from this job or pension is taxed at the basic rate (usually used if you’ve got more than one job or pension). GOV.UK, What your tax code means (opens in a new tab).
L: You’re entitled to the standard tax-free Personal Allowance. T: Your tax code includes other calculations to work out your Personal Allowance. GOV.UK, What your tax code means (opens in a new tab).
K: You have income that you are not paying tax on which is more than your Personal Allowance. GOV.UK, What your tax code means (opens in a new tab).
M: Marriage Allowance: you’ve received a transfer of 10% of your partner’s Personal Allowance. N: Marriage Allowance: you’ve transferred 10% of your Personal Allowance to your partner. GOV.UK, What your tax code means (opens in a new tab).
S: Your income or pension is taxed using the rates in Scotland. C: Your income or pension is taxed using the rates in Wales. GOV.UK, What your tax code means (opens in a new tab).
D0: All your income from this job or pension is taxed at the higher rate. D1: All your income from this job or pension is taxed at the additional rate. GOV.UK, What your tax code means (opens in a new tab).
NT: You’re not paying any tax on this income. GOV.UK, What your tax code means (opens in a new tab).
W1, M1 and X: You’re on an emergency tax code. GOV.UK, What your tax code means (opens in a new tab).
Scope
This is general information adapted from GOV.UK material under the Open Government Licence, without endorsement. The site has no tax code calculator. The GOV.UK check what your tax code means tool shows what the numbers and letters mean, how much tax you’ll pay and what you may need to do next.