Last updated: 4 November 2026. For the 2026/27 tax year (6 April 2026 to 5 April 2027).
Your tax code is a short mix of numbers and letters on your payslip. Most people never look at it, but it decides how much tax your employer or pension provider takes from your pay. If it’s wrong, you could be paying too much tax every single month, or building up a bill you’ll have to pay back later.
The good news: checking it takes five minutes. This guide explains what your tax code means, what the most common letters stand for, and what to do if yours looks wrong.
Where to find your tax code
You’ll find your tax code on:
- Your payslip (usually near the top, next to your National Insurance number)
- Your P60, which you get after the end of each tax year
- A coding notice (P2) from HMRC, if your code has changed
- The HMRC app or your personal tax account on GOV.UK
The HMRC app is the quickest way. It shows your current tax code for each job or pension, plus an estimate of the tax you’ll pay this year.
What does 1257L mean?
1257L is the most common tax code for 2026/27. It’s the standard code for most people who have one job or pension and no untaxed income or company benefits.
- 1257 is your tax-free Personal Allowance (£12,570) with the last digit removed
- L means you’re entitled to the standard tax-free Personal Allowance
So with 1257L, your employer spreads your £12,570 allowance across the year and taxes everything above it. My Personal Allowance guide explains the allowance and the tax bands.
If your number is lower than 1257, HMRC is probably collecting tax on something else through your pay, such as a company car or underpaid tax from a previous year. If it’s higher, you might be getting extra allowance, such as the Marriage Allowance or tax relief on work expenses.
What the letters mean
| Letter | What it means |
|---|---|
| L | You get the standard tax-free Personal Allowance |
| M | Marriage Allowance: you’ve received 10% of your partner’s Personal Allowance |
| N | Marriage Allowance: you’ve transferred 10% of your Personal Allowance to your partner |
| T | Your code includes other calculations to work out your Personal Allowance (for example, it’s been reduced because you earn over £100,000) |
| 0T | Your Personal Allowance has been used up, or you’ve started a new job and your employer doesn’t have the details they need |
| BR | All your income from this job or pension is taxed at the basic rate (20%). Often used for a second job |
| D0 | All income from this job or pension is taxed at the higher rate (40%). Usually a second job |
| D1 | All income from this job or pension is taxed at the additional rate (45%). Usually a second job |
| NT | You’re not paying any tax on this income |
| S | Your income or pension is taxed using Scottish rates |
| C | Your income or pension is taxed using Welsh rates |
| K | You have income that isn’t being taxed another way, and it’s worth more than your tax-free allowance |
Source: GOV.UK tax codes. A code may also start with S or C to show Scottish or Welsh taxpayers, such as S1257L.
What does a K code mean?
A K code is the one that surprises people. It means the income HMRC needs to tax through your pay (for example, a company car, medical insurance or untaxed State Pension) is more than your tax-free allowance. So instead of having a tax-free amount, an extra amount is added to your taxable pay. There are rules to stop your employer taking more than half your pay in tax.
If you have a K code and don’t know why, check your personal tax account or call HMRC.
Emergency tax codes
If you start a new job, start getting a pension, or your employer doesn’t have your P45, you might be put on an emergency tax code for a while. These end in:
- W1 (week 1)
- M1 (month 1)
- X
These are also called “non-cumulative” codes. Your tax is worked out only on what you’re paid in that pay period, without taking into account what you’ve earned and paid so far this year. That can mean you pay too much tax for a while, especially if you started partway through the tax year.
Emergency codes are usually temporary. Once HMRC gets the right details from your employer, it sends a new code, and any overpaid tax is normally given back through your pay. If it’s still on an emergency code after a couple of payslips, it’s worth checking.
Tip: give your new employer your P45 from your last job as soon as you start. If you don’t have one, fill in your new employer’s starter checklist accurately.
Signs your tax code might be wrong
- It’s not 1257L and you have one job, no benefits in kind and no other income
- You’ve changed jobs and you’re on an emergency code (W1, M1 or X) for more than a couple of months
- You have two jobs and both are using your full allowance (you’d end up owing tax)
- You’ve stopped getting a company car or other benefit, but your code hasn’t changed
- You’ve started claiming a pension and the code looks odd
- You’ve applied for the Marriage Allowance but don’t have an M or N
- Your take-home pay suddenly drops with no pay change
How to check your tax code is right
- Log in to the HMRC app or your personal tax account.
- Check your income for each job and pension. Is HMRC using the right estimated pay?
- Check the benefits and adjustments listed, such as company car, medical insurance, or tax owed from earlier years.
- Compare the code on your payslip with the one in your account.
If something’s wrong (for example, HMRC thinks you’ll earn much more than you will, or it’s still counting a benefit you no longer get), you can update it.
How to fix a wrong tax code
- Update it online: in your personal tax account or the HMRC app, you can update your estimated income, tell HMRC about a change of job, or remove a company benefit.
- Call HMRC: the Income Tax helpline is on GOV.UK. Have your National Insurance number, P60 and recent payslips ready.
- Tell your employer if HMRC has sent you a new code but your payslip hasn’t changed. Employers only change your code when HMRC tells them to.
Once HMRC updates your code, it tells your employer or pension provider. GOV.UK says it can take up to 35 days for the change to show on your pay, depending on when your employer runs payroll.
If you’ve overpaid: the extra is usually refunded through your pay once your code is corrected. If it’s after the end of the tax year, HMRC may send you a P800 tax calculation and a refund. My tax refund guide explains how this works.
If you’ve underpaid: HMRC usually collects it through your tax code next year (if it’s under £3,000 and you’re employed), so you pay it back gradually rather than in one go.
Watch out for tax code scams
HMRC won’t text or email you to say your tax code is wrong and ask you to click a link or give bank details. If you get a message like this, don’t click it. Forward suspicious emails to phishing@hmrc.gov.uk and texts to 60599. My tax refund guide has more on spotting HMRC scams.
Tax code: people also ask
What is the normal tax code for 2026/27?
1257L, for most people with one job or pension and no other untaxed income or benefits.
What does 1257L M1 mean?
It’s an emergency (non-cumulative) code. You get the standard allowance, but tax is worked out on each month’s pay on its own. It’s usually temporary when you start a new job.
What does BR tax code mean?
All your income from that job or pension is taxed at 20%, with no tax-free allowance. It’s normal for a second job, but wrong if it’s your only or main job.
How do I know if my tax code is wrong?
Check it in the HMRC app. If you have one job and no benefits but your code isn’t 1257L, or HMRC is using the wrong estimate of your pay, it may be wrong.
How long does it take to change a tax code?
HMRC updates it quickly once you tell them, but GOV.UK says it can take up to 35 days for your employer to apply it to your pay.
Will I get money back if my tax code was wrong?
Usually, yes. If you’ve overpaid, it’s normally refunded through your pay or by a P800 after the tax year ends.
Summary
- Find your code on your payslip, P60 or the HMRC app.
- 1257L is the standard code for 2026/27: the £12,570 allowance minus the last digit, plus L.
- Emergency codes (W1, M1, X) and BR on a main job are common signs something needs checking.
- Fix it in your personal tax account or by calling HMRC. Overpaid tax usually comes back.
Next step: read my Personal Allowance guide, or check whether you’re owed a tax refund.
General information only, not tax advice.
Sources (checked 4 November 2026): GOV.UK: tax codes · GOV.UK: what your tax code means · GOV.UK: emergency tax codes · GOV.UK: check your Income Tax for the current year · GOV.UK: report HMRC phishing