What is a tax code?
A tax code is a combination of numbers and letters used by HMRC to tell your employer or pension provider how much income tax to deduct from your pay. The number represents your tax-free Personal Allowance (multiply it by 10), and the letter tells HMRC which rules to apply to your income.
How to read your tax code
The numbers
Multiply the number by 10 to find your tax-free Personal Allowance. For example, 1257 means a Personal Allowance of £12,570. A higher number means more tax-free income; a lower number means HMRC has reduced your allowance.
The letters
The letter after your number tells HMRC which category of taxpayer you are. L is the standard default. BR means basic rate only. K means your deductions exceed your allowance. See the full list below.
What each letter means
- L
- Standard Personal Allowance. Default for most employees.
- M
- Marriage Allowance recipient. Extra £1,260 added.
- N
- Marriage Allowance transferor. £1,260 reduced.
- T
- HMRC review pending. Other calculations apply.
- K
- Negative allowance. Deductions exceed your allowance.
- BR
- Basic Rate (20%). No Personal Allowance. Second job.
- D0
- Higher Rate (40%). Second income source.
- D1
- Additional Rate (45%). Income above £125,140.
- 0T
- Zero allowance. Often an emergency code.
- NT
- No Tax deducted. Rare, usually non-residents.
- W1/M1
- Non-cumulative. Each pay period taxed in isolation.
- S
- Scottish taxpayer. Scottish rates apply.
- C
- Welsh taxpayer. Welsh rates (currently same as England).
Find your tax code
Select your code for a detailed explanation, worked examples and step-by-step fix guides.
Standard codes
Fixing your tax code
How to check if your tax code is correct
Find your current code
Check your latest payslip (usually top right), your P2 coding notice from HMRC, or log into your HMRC Personal Tax Account at gov.uk.
Verify the number
Multiply the number by 10. If you have one job, no benefits in kind, and income under £100,000, it should be 1257 (giving a £12,570 Personal Allowance). A different number means HMRC has adjusted your allowance.
Check the letter
If you have one job and standard circumstances, the letter should be L. Any other letter means a special situation applies. Refer to the letters above or open the relevant code page for details.
Frequently asked questions
What does my tax code mean?
Your tax code is a combination of numbers and letters that tells your employer how much tax to deduct. The number multiplied by 10 is your tax-free Personal Allowance. The letter indicates your tax category, such as L for standard allowance, BR for basic rate only, or K for negative allowance.
What is the most common UK tax code for 2026/27?
1257L is the most common UK tax code for 2026/27. It applies to over 30 million employees and means you receive the full Personal Allowance of £12,570 before paying 20% income tax.
How do I check if my tax code is correct?
Check your latest payslip, your P2 coding notice from HMRC, or log into your HMRC Personal Tax Account at gov.uk. Multiply the number in your code by 10: it should equal your expected Personal Allowance (£12,570 for most people).
What happens if my tax code is wrong?
A wrong tax code means you are paying too much or too little tax through your wages. If you are overpaying, you can claim a refund by contacting HMRC. If you are underpaying, HMRC will collect the shortfall by adjusting a future code or sending a P800 bill.
Can I change my tax code myself?
You cannot change the code directly, but you can ask HMRC to review it. The quickest method is through your HMRC Personal Tax Account online. You can also call the Income Tax helpline on 0300 200 3300.
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Where these figures come from
Rates from GOV.UK.