What the code means
- The number. Multiply it by 10 for your tax free allowance. 1257L means £12,570 tax free.
- The letter L. The standard letter for the basic personal allowance.
- BR, D0, D1. All income taxed at basic, higher or additional rate, often used for second jobs.
- A K code. Means deductions, such as untaxed income or benefits, exceed your allowance, so tax is added rather than allowance given.
- W1 or M1. Emergency codes that tax each period in isolation until HMRC issues the right code.
Why codes go wrong, and what to do
Codes change when you switch jobs, gain a benefit like a company car, or have more than one income. If yours looks wrong, check it against your Personal Tax Account. HMRC can correct it, and you can reclaim overpaid tax or arrange to pay any shortfall.
Think your tax code is wrong?
A wrong code can quietly cost you every payday. TaxTune checks your code, gets HMRC to correct it, and reclaims any tax you have overpaid.
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We review your code, your income and your reliefs, correct any errors with HMRC, and make sure you are neither overpaying nor building a shortfall. Fixed fee.
Frequently asked questions
What does tax code 1257L mean?
It means you get the standard £12,570 personal allowance tax free before tax is deducted. The 1257 is the allowance divided by 10, and L is the standard personal allowance letter.
What is an emergency tax code?
Codes ending W1 or M1 tax each pay period in isolation, often when you start a new job before HMRC has full details. They usually correct once the right code is issued.
What is a K tax code?
A K code means your deductions, such as untaxed income or benefits, are greater than your allowance, so tax is added to your pay rather than allowance being given.
Why did my tax code change?
Codes change when you switch jobs, receive a benefit such as a company car, have more than one income, or when HMRC updates your allowances or collects an old underpayment.
How do I correct a wrong tax code?
Check it in your Personal Tax Account and contact HMRC, or ask your accountant. HMRC can reissue the code, and you can reclaim overpaid tax or arrange to pay a shortfall.