What is a PAYE tax code?
Your tax code tells your employer or pension provider how Income Tax should be calculated from the pay or pension they give you through PAYE.
HMRC normally determines the code. Most tax codes contain numbers and letters, although some codes such as BR, D0 and NT contain letters only.
A tax code is a set of PAYE instructions. It does not simply tell you your tax rate — it helps payroll determine how much Income Tax should be deducted from a particular job or pension.
Where can you find your tax code?
Your current tax code can normally be found on documents and services such as:
- Your payslip.
- Your P45.
- Your P60.
- An HMRC tax-code notice.
- Your HMRC Personal Tax Account.
- The HMRC app.
If you have more than one employment or pension, make sure you are checking the code attached to the correct PAYE income source.
What do the numbers in a tax code mean?
HMRC says the numbers in a tax code tell an employer or pension provider how much tax-free income you receive from that PAYE source during the tax year.
The number is generally multiplied by 10 to estimate the amount of tax-free income represented by the code.
1257 × 10 = £12,570
The numerical part of 1257L therefore broadly represents £12,570 of tax-free income through that PAYE source.
The letter L then indicates entitlement to the standard tax-free Personal Allowance.
Your tax-code number may be different because HMRC has taken account of taxable benefits, untaxed income, tax owed or additional allowances and reliefs.
What do the letters in a tax code mean?
The letters in your tax code provide additional instructions about your Personal Allowance or the Income Tax treatment that should be applied to that job or pension.
Some of the most commonly encountered codes are shown below.
Common UK tax codes explained
| Tax code | What it generally means |
|---|---|
| L | You are entitled to the standard tax-free Personal Allowance. |
| M | You have received a transfer of part of your spouse or civil partner's Personal Allowance through Marriage Allowance. |
| N | You have transferred part of your Personal Allowance to your spouse or civil partner through Marriage Allowance. |
| T | Your tax code includes other calculations affecting your Personal Allowance. |
| BR | All income from that particular job or pension is taxed at the basic rate. |
| D0 | All income from that particular PAYE source is taxed at the higher rate. |
| D1 | All income from that particular PAYE source is taxed at the additional rate. |
| 0T | No Personal Allowance is being given through that particular PAYE source. |
| K | Income or deductions that need to be taxed through PAYE are greater than your available Personal Allowance. |
| NT | No Income Tax is being deducted from that income. |
BR is commonly used for an additional job or pension where your Personal Allowance is already being used elsewhere. Whether BR is appropriate depends on your overall PAYE circumstances.
What does tax code 1257L mean?
1257L is currently the tax code used for most people with one job or pension. [oai_citation:0‡GOV.UK](https://www.gov.uk/tax-codes/what-your-tax-code-means?utm_source=chatgpt.com)
The numerical part generally represents £12,570 of tax-free income, while L means you are entitled to the standard tax-free Personal Allowance.
However, 1257L is not necessarily the correct code for everyone. Your code can differ because of circumstances such as:
- Taxable company benefits.
- Untaxed income.
- Tax owed from an earlier period.
- Eligible employment expense tax relief.
- Marriage Allowance.
- Multiple jobs or pensions.
- Changes to your estimated income.
A standard 1257L code should not automatically be confused with an emergency code.
What does a K tax code mean?
HMRC uses K codes where income or deductions that need to be taxed through PAYE are greater than your available tax-free Personal Allowance. [oai_citation:1‡GOV.UK](https://www.gov.uk/tax-codes/k-in-your-tax-code?utm_source=chatgpt.com)
Examples can include:
- Tax owed from an earlier year.
- State Pension or taxable state benefits.
- Taxable company benefits such as a company car.
- Savings interest exceeding the relevant tax-free allowance.
PAYE deductions are subject to a 50% limit
HMRC states that employers and pension providers cannot deduct more than half of your pre-tax wages or pension when operating a K tax code. [oai_citation:2‡GOV.UK](https://www.gov.uk/tax-codes/k-in-your-tax-code?utm_source=chatgpt.com)
What do S and C tax-code prefixes mean?
Scottish Income Tax
An S prefix indicates that income from that PAYE source is being taxed using Scottish Income Tax treatment.
Welsh Income Tax
A C prefix indicates that income from that PAYE source is being taxed using Welsh Income Tax treatment.
GOV.UK lists Scottish codes such as SBR and SD0 and Welsh codes such as CBR and CD0 as regional versions of PAYE tax codes. [oai_citation:3‡GOV.UK](https://www.gov.uk/tax-codes/what-your-tax-code-means?utm_source=chatgpt.com)
What is an emergency tax code?
Emergency tax codes are a more specific part of the wider PAYE tax-code system.
GOV.UK identifies W1, M1, X and NONCUM as emergency-code indicators. [oai_citation:4‡GOV.UK](https://www.gov.uk/tax-codes/what-your-tax-code-means?utm_source=chatgpt.com)
They generally mean PAYE is being operated on a non-cumulative basis rather than using the normal full year-to-date calculation.
Read our dedicated Emergency Tax Codes Guide for more detail.
Why might your tax code change?
HMRC may change a tax code when it receives new information that affects your PAYE calculation.
Changing jobs
Starting or leaving employment can affect the information HMRC uses to calculate your PAYE code.
Company benefits
Starting or stopping taxable benefits can change the adjustments included in your code.
Other income
Pension income, state benefits or other untaxed income can affect PAYE coding.
Tax adjustments
Earlier underpaid tax, allowances or eligible relief may be reflected through your code.
What should you do if your tax code looks wrong?
Start by checking the code actually being used on your payslip and compare it with the information HMRC currently holds about your jobs, pensions, income and taxable benefits.
Check your payslip
Confirm the exact tax code being operated by your employer.
Check each job and pension
If you have several PAYE income sources, make sure the correct code is attached to each one.
Check HMRC's information
HMRC's tax-code checker can explain the numbers and letters, estimated tax and deductions included in the code. [oai_citation:5‡GOV.UK](https://www.gov.uk/guidance/check-what-your-tax-code-means?utm_source=chatgpt.com)
Review any tax difference
If an incorrect code caused too much or too little Income Tax to be deducted, your PAYE position may need correcting.
Employers operate PAYE using payroll information and HMRC instructions. If the underlying information is incorrect, it generally needs to be corrected with HMRC.
If you believe an incorrect code has resulted in excessive deductions, also read our Overpaid Tax Guide .
Reviewed & Updated
12 August 2026
2026/27
GO TAX REFUNDS
HM Revenue & Customs / GOV.UK
Tax codes depend on individual circumstances and can change during the tax year. This guide provides general information and should be considered alongside your current HMRC record, coding notice and PAYE circumstances.
UK Tax Code FAQs
What is the most common tax code?
HMRC currently identifies 1257L as the tax code used for most people with one job or pension. Your individual code can be different where other income, benefits, allowances or tax adjustments apply.
Does 1257L mean I pay no Income Tax?
No. The code generally represents £12,570 of tax-free income through that PAYE source. Income above the available tax-free amount can still be taxable.
Is BR an emergency tax code?
BR is not itself one of HMRC's emergency-code markers. It means all income from that particular job or pension is taxed at the basic rate.
Why is my tax code different from 1257L?
Your code can differ because of taxable benefits, untaxed income, tax owed, Marriage Allowance, employment expense relief or the way allowances are allocated across several jobs or pensions.
Can I have more than one tax code?
Yes. If you have several PAYE jobs or pensions, each one can have its own tax code.
Can an incorrect tax code cause an overpayment?
Potentially. If an incorrect code causes more Income Tax to be deducted than is ultimately due, a PAYE adjustment or repayment may be available depending on the circumstances.
Can my employer change my tax code?
Employers must operate PAYE using the appropriate starter information and tax-code instructions received through HMRC processes. If HMRC's underlying information is wrong, that information normally needs to be corrected.
HMRC & GOV.UK Sources
This guide is reviewed against current HMRC guidance on PAYE tax codes and checking tax-code calculations.
Think the tax code on your payslip may be wrong?
Go Tax Refunds can help review your PAYE records, employment history, tax codes and Income Tax deductions to establish whether you may have paid too much tax.
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