Emergency tax on a £32,000 new job
On a £32,000 salary paid monthly (£2,666.67 a month), an emergency 1257L M1 code takes about £323.83 Income Tax each month, as if you were paid that amount every month of the tax year. If you start in October with no earlier pay and stay on M1 until April, you pay about £1,943 against £686 due on the £16,000 you earned: about £1,257 too much, which you can get back.
| Monthly gross pay | £2,666.67 |
| Income Tax per month on 1257L M1 | £323.83 |
| Income Tax for a full year from April | £3,886 |
| October start: tax paid on M1 to April | £1,943 |
| October start: tax actually due | £686 |
| October start: overpaid | £1,257 |
| Income Tax per month on BR (not an emergency code) | £533.33 |
How this is worked out
Emergency tax codes end in W1 (paid weekly), M1 (paid monthly) or X (pay dates vary); some payslips show NONCUM. BR is not an emergency code: it taxes all pay from that job at the basic rate and is usually used when you have more than one job or pension.
Usually your tax is worked out on your total income so far in the tax year. On an emergency code it is worked out on what you are paid in that week or month only, as if you were paid that amount every period. If you start mid-year with no earlier pay, the allowance for the months before you started is not used, so you overpay.
Give your new employer your P45 to help take you off the emergency code. HMRC usually updates the code once it has your details, which can take up to 35 days from when you start the job. If you have paid too much tax, you can get a refund.
Figures assume tax code 1257L, England, no other income in the tax year and no student loan, with the 2026-27 rates. Amounts are rounded; payroll software uses HMRC tables, so the exact pennies can differ.
Sources: Emergency tax codes (GOV.UK), What your tax code means (GOV.UK), Income Tax rates and allowances (GOV.UK)