UK Tax Codes Explained 2025-26
Your PAYE tax code tells your employer how much Income Tax to deduct from your pay each month. Find out what your code means, who gets it, and see take-home pay examples at every common salary level.
How UK tax codes work
A tax code is a string of numbers and letters — for example 1257L or BR. HMRC calculates your code each tax year based on your Personal Allowance, any untaxed income, and your specific circumstances. Your employer then uses this code to work out how much Income Tax to deduct from each pay packet.
The number in a standard code (like 1257 in 1257L) represents your tax-free Personal Allowance divided by 10. So 1257 means you can earn £12,570 before paying tax. A lower number means a lower allowance — and more tax deducted.
The letter explains why your allowance is that amount. L is standard. M means you received Marriage Allowance. N means you gave it. BR, D0, D1 are flat-rate codes for second jobs. K codes mean your taxable income is increased rather than reduced. S and C prefixes indicate Scotland and Wales respectively.
You can check and update your tax code via your Personal Tax Account at gov.uk or by calling HMRC on 0300 200 3300.
Standard codes
L-suffix codes with a Personal Allowance. 1257L is the most common code in the UK.
Marriage Allowance codes
M and N codes adjust your Personal Allowance when you share it with a spouse or civil partner via Marriage Allowance.
Second-job codes (BR, D0, D1, 0T)
Flat-rate codes applied when your Personal Allowance is already used by your main job.
Special codes (NT, K codes)
NT means no tax is deducted. K codes add to your taxable income — usually due to large benefits in kind.
Scotland codes (S prefix)
Scottish taxpayers have an S prefix. Scotland has 6 tax bands — rates differ meaningfully from England above £43,662.
Wales codes (C prefix)
Welsh taxpayers have a C prefix (Cymru). For 2025-26, Welsh rates match England rates, so take-home pay is identical.
Frequently asked questions
What is a tax code?
A tax code is a combination of numbers and letters that tells your employer how much Income Tax to deduct from your pay. HMRC issues tax codes based on your Personal Allowance and individual circumstances. The most common code for 2025-26 is 1257L.
What does the number in my tax code mean?
For standard L codes, multiply the number by 10 to get your Personal Allowance. 1257 means £12,570 tax-free. 1100 means £11,000. A lower number means your allowance has been reduced — you will pay more tax.
What does the letter in my tax code mean?
L = standard allowance. M = Marriage Allowance received. N = Marriage Allowance given. BR = Basic Rate (20% flat). D0 = Higher Rate (40% flat). D1 = Additional Rate (45% flat). K = negative allowance. S prefix = Scotland. C prefix = Wales. NT = No Tax deducted.
How do I check if my tax code is correct?
Check your tax code via your Personal Tax Account at gov.uk, the HMRC app, or on your payslip and P60. If you think it is wrong, contact HMRC on 0300 200 3300. Common causes of incorrect codes include changing jobs, new benefits in kind, or marriage allowance changes.
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