Tax Code 1000L Explained
1000L gives a Personal Allowance of £10,000. This is significantly lower than the standard £12,570, meaning you pay tax on an extra £2,570 of income versus 1257L — roughly £514 more income tax per year at the basic rate. Income above £10,000 is taxed at the standard bands: 20%, 40%, and 45%.
Who gets tax code 1000L?
Employees with a noticeable downward adjustment to their allowance — usually because HMRC needs to collect tax on other untaxed income such as rental income, self-employment earnings below the filing threshold, or state benefits that are taxable. It can also arise if an employee has a company car or private medical cover as a benefit in kind.
Take-home pay on tax code 1000L — 2025-26 examples
Examples below show Income Tax and take-home pay at common salary levels. National Insurance (NI) is also shown separately — NI is not affected by your tax code and applies on the same basis for all employees.
| Gross Salary | Income Tax | NI (est.) | Take-Home | Effective IT Rate |
|---|---|---|---|---|
| £20,000 | £2,000 | £594 | £17,406 | 10.0% |
| £25,000 | £3,000 | £994 | £21,006 | 12.0% |
| £30,000 | £4,000 | £1,394 | £24,606 | 13.3% |
| £35,000 | £5,000 | £1,794 | £28,206 | 14.3% |
| £40,000 | £6,000 | £2,194 | £31,806 | 15.0% |
| £45,000 | £7,000 | £2,594 | £35,406 | 15.6% |
| £50,000 | £8,460 | £2,994 | £38,546 | 16.9% |
| £60,000 | £12,460 | £3,211 | £44,329 | 20.8% |
| £75,000 | £18,460 | £3,511 | £53,029 | 24.6% |
| £100,000 | £28,460 | £4,011 | £67,529 | 28.5% |
Take-home = Gross − Income Tax − National Insurance. No pension, student loan or other deductions included. NI calculated at 8% between £12,570–£50,270 and 2% above. Effective IT Rate shows Income Tax as a percentage of gross salary.
If you have tax code 1000L, here's what you should know
- Your tax code appears on your payslip, P60, and any correspondence from HMRC about your PAYE tax.
- Your employer uses this code to calculate how much Income Tax to deduct from each pay period — they do not set it themselves.
- If your circumstances change (new job, change in benefits, marriage allowance), your code should update automatically — but it is worth checking.
- You can view and update your tax code online via your Personal Tax Account at gov.uk.
- If you think your code is wrong, contact HMRC on 0300 200 3300 or use the HMRC app.
- An incorrect tax code can mean you overpay or underpay tax — overpayments are refunded, underpayments are collected in future years.
Frequently asked questions
What does tax code 1000L mean?
1000L gives a Personal Allowance of £10,000. This is significantly lower than the standard £12,570, meaning you pay tax on an extra £2,570 of income versus 1257L — roughly £514 more income tax per year at the basic rate. Income above £10,000 is taxed at the standard bands: 20%, 40%, and 45%.
Who gets tax code 1000L?
Employees with a noticeable downward adjustment to their allowance — usually because HMRC needs to collect tax on other untaxed income such as rental income, self-employment earnings below the filing threshold, or state benefits that are taxable. It can also arise if an employee has a company car or private medical cover as a benefit in kind.
How much do I take home on tax code 1000L earning £30,000?
On tax code 1000L with a £30,000 salary, you take home £24,606 per year (£2,051 per month) after Income Tax of £4,000.
Is tax code 1000L correct for me?
Your tax code is set by HMRC based on your individual circumstances. If you believe your tax code is wrong, contact HMRC on 0300 200 3300 or check your Personal Tax Account at gov.uk. An incorrect code could mean you are paying too much or too little tax.
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