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Tax codes

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What your tax code means

Your tax code is made up of numbers and letters.

1257L is the tax code currently used for most people who have one job or pension.

HM Revenue and Customs (HMRC) will usually contact you to explain how they worked out your individual tax code if your tax code changes.

Check what your tax code means

Enter your tax code in the check what your tax code means tool to find out:

  • what the numbers and letters mean
  • how much tax you’ll pay
  • what you may need to do next

What the numbers mean

The numbers in your tax code tell your employer or pension provider how much tax-free income you get from them in that tax year.

To work out your individual number, HMRC starts with your tax-free Personal Allowance and takes off any:

They then replace the final digit with a letter.

If you have a K in your tax code the calculation is different.

Example

You’re entitled to the standard tax-free Personal Allowance of £12,570, but you also get medical insurance from your employer. As this is a company benefit it lowers your Personal Allowance and changes your tax code.

The medical insurance benefit of £1,570 is taken away from your Personal Allowance, leaving you with a tax-free amount of £11,000. This would mean your tax code is 1100L.

What the letters mean

Letters in your tax code refer to your situation, and how it affects your tax-free Personal Allowance and the rates of tax you pay.

Letters What they mean
0T Your Personal Allowance has been used up, or you’ve started a new job and your employer does not have the details they need to give you a tax code
BR All your income from this job or pension is taxed at the basic rate (usually used if you’ve got more than one job or pension)
C Your income or pension is taxed using the rates in Wales
C0T Your Personal Allowance (Wales) has been used up, or you’ve started a new job and your employer does not have the details they need to give you a tax code 
CBR All your income from this job or pension is taxed at the basic rate in Wales (usually used if you’ve got more than one job or pension) 
CD0 All your income from this job or pension is taxed at the higher rate in Wales (usually used if you’ve got more than one job or pension) 
CD1 All your income from this job or pension is taxed at the additional rate in Wales (usually used if you’ve got more than one job or pension)
D0 All your income from this job or pension is taxed at the higher rate (usually used if you’ve got more than one job or pension)
D1 All your income from this job or pension is taxed at the additional rate (usually used if you’ve got more than one job or pension)
K You have income that you are not paying tax on which is more than your Personal Allowance - find out about a K in your tax code
L You’re entitled to the standard tax-free Personal Allowance
M Marriage Allowance: you’ve received a transfer of 10% of your partner’s Personal Allowance
M1 You’re on an emergency tax code
N Marriage Allowance: you’ve transferred 10% of your Personal Allowance to your partner
NONCUM You’re on an emergency tax code
NT You’re not paying any tax on this income
S Your income or pension is taxed using the rates in Scotland
S0T Your Personal Allowance (Scotland) has been used up, or you’ve started a new job and your employer does not have the details they need to give you a tax code
SBR All your income from this job or pension is taxed at the basic rate in Scotland (usually used if you’ve got more than one job or pension)
SD0 All your income from this job or pension is taxed at the intermediate rate in Scotland (usually used if you’ve got more than one job or pension)
SD1 All your income from this job or pension is taxed at the higher rate in Scotland (usually used if you’ve got more than one job or pension)
SD2 All your income from this job or pension is taxed at the advanced rate in Scotland (usually used if you’ve got more than one job or pension)
SD3 All your income from this job or pension is taxed at the top rate in Scotland (usually used if you’ve got more than one job or pension)
T Your tax code includes other calculations to work out your Personal Allowance
W1 You’re on an emergency tax code
X You’re on an emergency tax code
View a printable version of the whole guide

This page is Part of Start a new job: step by step

  1. Step 1 Get your National Insurance number

    You'll usually need your National Insurance number when you start your new job.

    1. Find your National Insurance number
    1. Apply for a National Insurance number if you do not already have one

  2. Step 2 Accept the job offer

    The offer might be ‘conditional’ or ‘provisional’, which means you may need to give further details to your new employer or pass pre-employment checks.

    1. Find out about your rights when accepting a job offer

  3. Step 3 Share your details for any employer checks

    Give your new employer what they need to complete any pre-employment checks.

    1. Find out what checks your employer can make
    1. Find out how to prove your right to work
    1. Find out about criminal record checks

  4. Step 4 Review your employment contract

    Your new employer should give you an employment contract. Check the terms before you agree to it.

    1. Find out about employment contracts

  5. and If you're leaving a job, hand in your notice

    Tell your current employer that you’re going to leave and when your last day will be. This is known as handing in your notice.

    1. Find out how to hand in your notice

    When you hand in your notice, ask your employer when you’ll get your P45.

    1. Find out about the P45

  6. Step 5 Prepare your personal information for your first day

    To get paid, you’ll need to give your new employer:

  7. Step 6 Give your P45 to your new employer

    Your new employer will use your P45 to work out how much tax to take from your pay.

    1. Find out about the P45

  8. or If you do not have a P45, fill in the starter checklist

    Use the starter checklist to give your employer details they need to work out your pay and tax.

    1. Fill in the starter checklist

  9. Step 7 Check your first payslip

    Your employer must give you a payslip on or before payday.

    1. Find out what should be on your payslip

    It’s your responsibility to make sure you’re paying the right amount of tax.

    1. Check if the tax on your payslip is correct

    If you think the tax is wrong, your tax code may be incorrect.

    1. Find out what to do if you think your tax code is wrong