Understanding your tax code
What your code means and what to do if your code looks incorrect
Your tax code tells your employer how much tax-free income you have. The standard code for 2026/27 is 1257L, representing the personal allowance of £12,570.
Reading your code
The number is the annual tax-free allowance divided by 10. The letter indicates the circumstances: L means you have the standard personal allowance; M means you receive Marriage Allowance from a spouse; K means your deductions exceed your allowances (your taxable income is effectively increased); BR means all income from this source is taxed at 20% without any allowance, if your salary from all jobs is lower than £50,270, or 40% if it is higher (usually applied to a second job).
If your code looks wrong
Log into your HMRC personal tax account here to see your tax code and the components that make it up. Forward any tax code notice to us for review before it is applied to payroll. Incorrect codes result in wrong deductions throughout the year.
💡 Good to know: An emergency tax code (1257L W1/M1 or 0T) is applied when HMRC lacks enough information. These often over-deduct tax. If your first payslip from a new employer shows an emergency code, contact us and we will arrange a correction.
Not found what you're looking for?
Please get in touch and we'll be happy to help:
Email: You can submit a request using our contact form
Phone: 020 3897 2233
Live Chat: Select the live chat icon on the bottom right