List of tax codes and what they mean in 2026/27
14/10/2026
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A UK tax code tells your employer or pension provider how much Income Tax to deduct from your pay through PAYE. For many people with one straightforward job or pension in the 2026/27 tax year, the standard code is 1257L. This reflects the standard £12,570 Personal Allowance.
This list of tax codes and what they mean explains the most common UK codes, how the numbers and letters work, why your code may change, what emergency codes mean and what to do if the code on your payslip does not look right.
What is a tax code?
A tax code is a set of numbers and letters used by payroll to calculate how much Income Tax should be deducted from a particular job or pension.
HMRC determines the code using information it holds about your income, allowances, taxable benefits and other amounts that may need to be collected through PAYE.
Your employer or pension provider normally applies the code it receives. It does not decide how much Personal Allowance you should receive.
A tax code can change during the year if your circumstances or the information held about you changes.
This is why it is worth understanding your code rather than assuming that the code on a payslip must automatically be correct.
Quick list of tax codes and what they mean
The table below provides a quick list of tax codes and what they mean for most employees, directors and pensioners.
| Tax code | What it means |
|---|---|
| 1257L | Standard £12,570 Personal Allowance for many people with one job or pension |
| L | Entitled to the standard Personal Allowance |
| M | You have received part of your spouse or civil partner’s Personal Allowance through Marriage Allowance |
| N | You have transferred part of your Personal Allowance to your spouse or civil partner |
| T | Some items used to calculate the code need to be reviewed |
| 0T | No Personal Allowance is available against this source of income |
| BR | All income from this source is taxed at the basic rate |
| D0 | All income from this source is taxed at the higher rate |
| D1 | All income from this source is taxed at the additional rate |
| NT | No tax is deducted from this income |
| K | Amounts being collected through PAYE exceed the available Personal Allowance |
| C | Welsh Income Tax treatment applies |
| S | Scottish Income Tax treatment applies |
| W1 / M1 / X | Emergency or non-cumulative tax treatment applies |
Tax codes work slightly differently if you pay Scottish or Welsh Income Tax. The correct code depends on your individual circumstances and the income source to which it applies.
How to read a UK tax code
Most UK tax codes contain a number followed or preceded by one or more letters.
What the numbers mean
In an ordinary code, the number usually represents the amount of tax-free income available against that employment or pension, with the final digit removed.
For example:
1257 × 10 = £12,570
A standard 1257L code therefore normally represents £12,570 of tax-free income being allocated to that PAYE source.
The number can be different where adjustments have been made for taxable benefits, untaxed income or other amounts.
What the letters mean
The letters provide instructions about how the code should be treated.
For example:
- L normally indicates the standard Personal Allowance.
- BR indicates basic-rate tax on all income from that source.
- K indicates that additional amounts need to be included when calculating taxable pay.
- S indicates Scottish Income Tax treatment.
- C indicates Welsh Income Tax treatment.
The same person can have different tax codes for different jobs or pensions.
Common UK tax codes explained
Below is a more detailed explanation of the codes people are most likely to encounter.
What does 1257L mean?
1257L is the standard tax code used for many employees and pensioners in 2026/27.
The number 1257 represents £12,570 of tax-free income.
The L indicates entitlement to the standard Personal Allowance.
You are most likely to see 1257L where you have one main job or pension and there are no significant adjustments required for taxable benefits, untaxed income or previous tax underpayments.
However, 1257L is not automatically correct for everyone.
What does BR mean?
BR means that all income from that particular job or pension is taxed at the basic rate.
It is commonly used where your Personal Allowance is already being used against another source of income, such as your main job.
BR is therefore common on second jobs and additional pensions. BR by itself is not an emergency tax code.
Emergency treatment is normally identified by W1, M1, X or another non-cumulative marker.
What do D0 and D1 mean?
For taxpayers outside Scotland:
- D0 means all income from that source is taxed at the higher rate.
- D1 means all income from that source is taxed at the additional rate.
These codes can be used for a second job or pension where your allowances and lower tax bands are already being used against other income.
The presence of D0 or D1 does not automatically mean the code is incorrect.
What does 0T mean?
0T means that no Personal Allowance is available against that particular employment or pension.
It can appear where:
- your allowance is already being used elsewhere;
- your Personal Allowance has reduced to zero; or
- sufficient information is not yet available to apply another code.
Unlike BR, 0T does not simply tax everything at one fixed rate. Income is taxed through the relevant tax bands.
What does a K tax code mean?
A K code works differently from an ordinary tax code. It can be used where amounts that need to be included in your PAYE calculation are greater than the Personal Allowance available to you.
Examples can include:
- tax owed from an earlier year;
- taxable State Pension;
- taxable employment benefits;
- a company car; or
- other untaxed income.
With a K code, the number multiplied by 10 broadly represents an amount added to taxable income when the PAYE calculation is made.
For example:
K475 broadly represents £4,750 being added when taxable pay is calculated.
There is an important safeguard. Tax deducted using a K code cannot exceed half of your pre-tax pay or pension for the relevant pay period.
Directors whose codes are affected by company benefits or wider company-tax matters can also review Fusion’s limited company accountants service.
What do M and N mean?
M and N relate to Marriage Allowance. M means that you are receiving part of your spouse or civil partner’s Personal Allowance.
N means that you have transferred part of your Personal Allowance to your spouse or civil partner.
They do not simply indicate that somebody is married. They specifically show that a Marriage Allowance transfer is affecting the PAYE calculation.
What does T mean?
A tax code ending in T means that some items used in calculating the code need to be reviewed.
The code may be used where the tax position requires more consideration than a standard Personal Allowance calculation.
The presence of T does not itself mean that the tax code is wrong.
What does NT mean?
NT means that no tax should be deducted from that particular source of income.
It is only used in specific circumstances.
If NT appears unexpectedly, the underlying position should be checked rather than assuming that the income is automatically tax-free.
Scottish and Welsh tax codes
The list of tax codes and what they mean becomes slightly different where Scottish or Welsh Income Tax treatment applies.
Scottish tax codes
Scottish taxpayers normally have an S at the beginning of their tax code.
For example:
S1257L
means that the standard allowance is being used and Scottish Income Tax rates apply.
Common Scottish codes include:
| Code | Meaning |
|---|---|
| S1257L | Standard Personal Allowance with Scottish Income Tax treatment |
| S0T | No Personal Allowance; Scottish rates apply |
| SBR | All income from this source taxed at the Scottish basic rate |
| SD0 | All income from this source taxed at the Scottish intermediate rate |
| SD1 | All income from this source taxed at the Scottish higher rate |
| SD2 | All income from this source taxed at the Scottish advanced rate |
| SD3 | All income from this source taxed at the Scottish top rate |
For 2026/27, Scottish non-savings, non-dividend income has starter, basic, intermediate, higher, advanced and top-rate bands.
Welsh tax codes
Welsh taxpayers normally have a C at the beginning of their tax code.
For example:
C1257L
uses the standard Personal Allowance while indicating Welsh Income Tax treatment.
Common Welsh codes include:
| Code | Meaning |
|---|---|
| C1257L | Standard allowance with Welsh Income Tax treatment |
| C0T | No Personal Allowance |
| CBR | All income from this source taxed at the Welsh basic rate |
| CD0 | All income from this source taxed at the Welsh higher rate |
| CD1 | All income from this source taxed at the Welsh additional rate |
The C is a prefix. It does not replace the L in a standard 1257L-style code.
Emergency tax codes: W1, M1 and X
Emergency tax treatment is normally indicated by W1, M1 or X.
W1 means week 1.
M1 means month 1.
X can be used where pay dates vary.
Some payroll systems may instead display NONCUM.
Under emergency or non-cumulative treatment, the tax calculation looks at the current pay period rather than taking account of all earlier pay and tax from the tax year.
This can result in too much or too little tax being deducted.
Emergency treatment can occur where:
- you start a new job and complete information is not yet available;
- previous employment information is missing; or
- taxable benefits or pension information changes.
The emergency code used for 2026/27 is based on 1257L, although the W1, M1 or X marker changes how it is operated. Not every new starter receives an emergency code. If you start a job without a P45 and it is your first job since 6 April with no other income, your employer will normally use 1257L on a cumulative basis. If you also have another job or pension, BR is normally used instead.
Where can you find your tax code?
You can normally find your current tax code on:
- your payslip;
- your P45 when leaving a job;
- your P60 after the end of the tax year;
- tax-code notices sent to you; or
- your current PAYE information held online.
If you have more than one job or pension, check the code attached to each source separately.
Do not assume that the first tax code you find applies to all of your income.
Your Personal Allowance may be allocated differently across multiple sources.
Why can your tax code change?
A change to your tax code does not automatically mean something has gone wrong. Codes can change when the information used to calculate your PAYE position changes.
Common reasons include:
- starting a new job;
- leaving a job;
- taking a second job;
- beginning to receive a pension;
- changes in estimated annual income;
- starting or stopping a taxable employment benefit;
- receiving State Pension;
- tax owed from an earlier year;
- changes to Marriage Allowance; or
- changes in other untaxed income.
For example, receiving a company car or private medical insurance can reduce the amount of tax-free pay available through the code.
Where a change reflects a wider or more complicated tax matter, Fusion’s tax advisory services can help review the overall position.
How tax codes work in common situations
Tax codes are easier to understand when you see how they apply in real situations.
If you have more than one job or pension
You receive only one Personal Allowance for the tax year. That allowance may be allocated to your main job or pension.
Another job or pension may therefore use BR, D0 or D1 depending on your overall income. Having several codes is not automatically a problem.
The important question is whether your allowances and tax bands are allocated appropriately across your income.
If you are self-employed
Self-employed business profits themselves are not normally taxed through PAYE. A sole trader usually reports those profits through Self Assessment.
However, somebody can be self-employed and also receive PAYE employment or pension income. That PAYE income can still have a tax code.
If you have self-employed income alongside employment or other taxable income, Fusion’s Self Assessment tax return service can help with the wider reporting requirements.
If you receive company benefits
Taxable employment benefits can affect your code.
Examples can include:
- company cars;
- private medical insurance;
- certain accommodation; or
- other benefits that create a taxable value.
The amount used in the code can reduce your available tax-free pay so the tax on the benefit is collected through payroll.
If you are an employer
Employers use the tax code supplied through the PAYE process to calculate Income Tax through payroll.
An employer should not simply invent or manually alter an employee’s code because the employee believes it is wrong.
If the underlying information changes, the appropriate updated coding instruction should be applied through payroll.
Fusion’s payroll services for small businesses can support employers with PAYE calculations, tax-code updates, P45s, P60s and regular payroll reporting.
How to check and correct your tax code
You can also use HMRC’s check what your tax code means tool to understand the letters and numbers in your code and see what action may be needed. If your tax code looks wrong, first check the information behind it rather than focusing only on the letters and numbers.
Review:
- which job or pension the code belongs to;
- whether your Personal Allowance is already being used elsewhere;
- your estimated annual income;
- previous employments;
- pension information;
- company benefits;
- other taxable income; and
- any previous tax underpayment being collected.
If the information HMRC holds is incorrect, use the check your Income Tax for the current tax year service to review your tax code, estimated income and employment or pension details.
What if you think your tax code is wrong?
Correct the underlying information rather than trying to change the code yourself.
Once the relevant information is updated, a revised code can be issued where necessary.
Your employer or pension provider will normally apply the new code when instructed.
If too much or too little Income Tax has already been deducted, how the difference is corrected depends on your circumstances.
What should employers do?
Employers should apply valid tax-code instructions through payroll and keep employee payroll records up to date.
If an employee believes a code is incorrect, the employee’s tax information needs to be corrected rather than the employer independently choosing another code.
This distinction protects both the employer and employee from creating a second PAYE problem while trying to solve the first.
Tax-code examples in everyday situations
The following examples show how some of the most common codes might appear in practice.
| Situation | Possible code | What it generally means |
|---|---|---|
| One standard job with full Personal Allowance | 1257L | Standard £12,570 allowance allocated to this job |
| Second job where the allowance is used elsewhere | BR | All income from this source taxed at basic rate |
| Additional income for a higher-rate taxpayer | D0 | All income from this source taxed at higher rate |
| Additional income for an additional-rate taxpayer | D1 | All income from this source taxed at additional rate |
| Personal Allowance unavailable against this source | 0T | Income taxed through the bands without an allowance |
| Taxable company benefit or previous underpayment | K code | Additional amount included in the PAYE calculation |
| Marriage Allowance received | M code | Part of a partner’s allowance transferred to you |
| Marriage Allowance transferred away | N code | Part of your allowance transferred to your partner |
| New job while PAYE information is incomplete | 1257L W1/M1 or another emergency code | Current-period rather than cumulative tax calculation |
| Scottish taxpayer | S-prefixed code | Scottish Income Tax treatment applies |
| Welsh taxpayer | C-prefixed code | Welsh Income Tax treatment applies |
These examples are illustrative rather than a way to determine your own tax code.
The correct code depends on your complete circumstances.
Frequently asked questions about UK tax codes
What is the most common UK tax code in 2026/27?
1257L is the standard code used for many people with one job or pension and no adjustments that change their normal Personal Allowance.
Is BR an emergency tax code?
Not by itself.
BR means that all income from that particular source is taxed at the basic rate.
Emergency or non-cumulative treatment is normally indicated by W1, M1, X or a similar marker.
Can you have more than one tax code?
Yes.
If you have more than one job or pension, each PAYE income source can have its own code.
Your Personal Allowance is not duplicated simply because you have several codes.
Does a tax code tell you your Income Tax rate?
Not always.
Some codes such as BR, D0 and D1 specify how income from that particular source should be taxed.
Other codes, such as 1257L, mainly indicate the allowance available before the normal tax bands are applied.
Do self-employed people have tax codes?
Self-employed profits are not normally taxed through a PAYE tax code.
However, a self-employed person can still have a tax code for separate employment or pension income.
What should you do if your tax code changes unexpectedly?
Check which income source the new code belongs to and review whether your income, employment, pension or benefit information has changed.
If the information used to calculate the code is wrong, correct the underlying information promptly.
Can a company benefit change your tax code?
Yes.
Taxable benefits such as a company car can be reflected in the PAYE calculation and may reduce the amount of tax-free pay available through your code.
Can your tax code change during the tax year?
Yes.
Tax codes can change during the year when relevant information or your circumstances change.
Does your employer decide your tax code?
Normally, no.
Your employer applies the PAYE code it is instructed to use. It does not independently decide how much Personal Allowance you should receive.
What is the difference between 0T and BR?
BR taxes all income from that source at the basic rate.
0T provides no Personal Allowance but allows the relevant tax bands to apply.
They therefore do not produce the same result in every situation.
What does the number 1257 mean?
For an ordinary code such as 1257L, multiplying 1257 by 10 gives £12,570, which represents the standard Personal Allowance allocated through that PAYE source.
How often should you check your tax code?
Check it when you receive a new code or notice a change, and particularly after starting or leaving a job, taking another job, receiving new employment benefits or experiencing a significant change in income.
Need help with tax codes or payroll?
Fusion Accountants’ payroll specialists can help UK employers and directors manage PAYE payroll, apply HMRC coding notices correctly and keep employee payroll records up to date. Book a free consultation to discuss your payroll requirements.
This article provides general information and does not constitute accounting, tax or legal advice. Tax codes depend on individual circumstances. Check your current HMRC information or obtain professional advice if you are unsure.
At Fusion Accountants, our payroll specialists help UK businesses manage PAYE, tax-code updates and employee payroll records accurately. Book a free consultation with Fusion Accountants to discuss your payroll requirements.
