Income TaxSep 1, 2025
What do UK tax codes mean and what does 1257L stand for?
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Your UK tax code tells your employer or pension provider how much tax-free income you are entitled to in a tax year. The most common tax code for 2024/25 is 1257L.
How to read your tax code:
The number in your tax code (e.g. 1257) represents your tax-free Personal Allowance. Multiply the number by 10 to get your allowance. So 1257 means a Personal Allowance of Ā£12,570.
What the letters mean:
| Letter | Meaning |
|---|---|
| L | You are entitled to the standard Personal Allowance (Ā£12,570) |
| M | You have received Marriage Allowance from your partner |
| N | You have transferred Marriage Allowance to your partner |
| T | Your tax code includes other calculations, such as benefit-in-kind adjustments |
| 0T | Your Personal Allowance has been used up or a new employer does not have your details |
| BR | All income from this source is taxed at the basic rate (20%) |
| D0 | All income from this source is taxed at the higher rate (40%) |
| D1 | All income from this source is taxed at the additional rate (45%) |
| NT | No tax is deducted |
| S | Scottish income tax rates apply |
| C | Welsh income tax rates apply |
| K | You have income that is not being taxed another way and it is worth more than your tax-free allowance |
If your tax code is wrong, you could be paying too much or too little tax. Check your code on your payslip or P60, and if it looks incorrect, contact HMRC or update your details through your Personal Tax Account on GOV.UK.
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Disclaimer: This information is for general educational purposes and is not professional tax advice. Tax situations vary. Consult a qualified tax professional for advice specific to your circumstances.