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%.
What does tax code 1000L mean?
Tax code 1000L gives you a Personal Allowance of £10,000, meaning you pay tax on an extra £2,570 compared to 1257L. That costs roughly £514 more per year at the basic rate. HMRC issues this code when you have significant untaxed income or benefits in kind.
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.
Tax code 1000L vs 1257L: take-home comparison
How much more or less you take home on 1000L compared to the standard 1257L code at the same gross salary. A negative number means less take-home pay.
| Gross Salary | 1257L Take-Home | 1000L Take-Home | Difference |
|---|---|---|---|
| £20,000 | £17,920 | £17,406 | -£514 |
| £25,000 | £21,520 | £21,006 | -£514 |
| £30,000 | £25,120 | £24,606 | -£514 |
| £35,000 | £28,720 | £28,206 | -£514 |
| £40,000 | £32,320 | £31,806 | -£514 |
| £45,000 | £35,920 | £35,406 | -£514 |
| £50,000 | £39,520 | £38,546 | -£974 |
| £60,000 | £45,357 | £44,329 | -£1,028 |
| £75,000 | £54,057 | £53,029 | -£1,028 |
| £100,000 | £68,557 | £67,529 | -£1,028 |
Both columns include Income Tax and National Insurance. No pension or student loan deductions. 1257L = standard Personal Allowance of £12,570.
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.
How do I change tax code 1000L?
To change tax code 1000L, contact HMRC directly on 0300 200 3300 or update your details via your Personal Tax Account at gov.uk. Your employer cannot change your tax code — only HMRC can issue a new one. Once HMRC updates your code, they will notify your employer and the change will appear on your next payslip.
Will I get a refund if tax code 1000L was applied in error?
If tax code 1000L was applied incorrectly and caused you to overpay Income Tax, HMRC will refund the overpayment. This typically happens automatically via a P800 tax calculation sent after the tax year ends (April). For a faster refund, contact HMRC directly once the correct code has been issued. Overpayments can also be reclaimed through Self Assessment if you file a return.
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