Understanding your tax code is essential to ensuring you are paying the correct amount of income tax. The tax code you are given by HMRC tells your employer or pension provider how much tax-free income you are entitled to — and how much tax to deduct.
Below is a comprehensive list of commonly used UK tax codes and what they mean for you.
🔹 1257L
This is the standard tax code for most people for the tax year 2024/2025.
It means you are entitled to the full £12,570 personal allowance (the amount you can earn before paying any income tax).
You’ll typically see this if you have one job or pension and no special circumstances.
🔹 BR (Basic Rate)
This means all your income is taxed at the basic rate of 20%, with no personal allowance applied.
It’s commonly used for second jobs or pensions where your personal allowance is used elsewhere.
🔹 D0 (Higher Rate)
All income is taxed at the higher rate of 40%.
Used when you have a second source of income that pushes you into the higher-rate tax band.
🔹 D1 (Additional Rate)
All income is taxed at the additional rate of 45%.
Used if you earn over £125,140 and have other sources of income.
🔹 0T
This means no personal allowance is applied and your entire income is taxable.
It’s typically used:
- If you’ve just started a job
- Or HMRC hasn’t received enough information about your tax status
It’s sometimes a temporary emergency code.
🔹 K Codes (e.g. K497)
The K prefix means your income includes taxable benefits or unpaid tax from previous years.
Your personal allowance is effectively reduced, so you pay tax on a larger portion of your income.
The higher the number after the K, the more is being added to your taxable income.
🔹 NT (No Tax)
This code means no income tax is to be deducted.
Used in specific situations like:
- Some freelance contractors
- Expats or offshore workers
- People with non-taxable income
🔹 W1 / M1 (Week 1 / Month 1 Basis)
These are emergency tax codes used temporarily.
They mean your tax is calculated based only on that week or month — not the full year.
- W1 = Week 1 basis
- M1 = Month 1 basis
Often applied when:
- You start a new job without a recent P45
- Your employer hasn’t received your tax code yet
Once HMRC has your full info, they usually update your tax code.
🔹 L (Standard Personal Allowance)
This suffix means you qualify for the standard personal allowance (currently £12,570).
It’s the most common suffix used in combination with the 1257 tax code (e.g. 1257L).
🔹 M (Marriage Allowance Receiver)
You’ve received 10% of your partner’s personal allowance through the Marriage Allowance transfer.
Your spouse or civil partner must earn less than the personal allowance to transfer it to you.
🔹 N (Marriage Allowance Transferor)
You’ve transferred part of your personal allowance to your partner.
This is the flip side of the M code.
🔹 T
Used when HMRC needs to review your tax code due to:
- Other income (e.g. dividends, property)
- Taxable benefits (e.g. company car)
- Or complex adjustments to your personal allowance
📝 How to Check or Change Your Tax Code
If you think your tax code is incorrect, you can:
- View and update your tax code online:
🔗 Check your Income Tax on GOV.UK - Or contact HMRC directly:
📞 0300 200 3300
It’s important to keep your tax code accurate to avoid underpaying or overpaying tax.
🔢 Common UK Tax Codes – What They Mean
| Tax Code | What It Means |
|---|---|
| 1257L | Standard tax code for most people (personal allowance of £12,570). |
| BR | “Basic Rate” – all income taxed at 20%. Usually used for second jobs. |
| D0 | All income taxed at 40% – usually for a second job or pension. |
| D1 | All income taxed at 45%. |
| K | Negative tax code – used when taxable benefits exceed the personal allowance. |
| M | Marriage Allowance: You receive 10% of your partner’s allowance. |
| N | Marriage Allowance: You transfer 10% of your allowance to your partner. |
| T | Your tax code includes other adjustments, often complex. |
| NT | No tax deducted – usually for special tax arrangements or international cases. |
| 0T | No personal allowance – income taxed at standard rates only. |
| S | Scottish tax code – used for residents of Scotland. |
| C | Welsh tax code – used for residents of Wales. |
📊 Income Tax Rates & Bands – 2025/26 (England)
| Band | Annual Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Note: The personal allowance reduces by £1 for every £2 you earn over £100,000.
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