Tax code decoder
What does my tax code mean?
Your tax code is a set of instructions to your employer or pension provider. We translate it into plain English, show what tax-free pay it gives you, and tell you whether it looks right for your situation.
Common codes
- 1257LThe standard code for one job or pension
- BREverything taxed at 20%, usually a second job
- D0Everything taxed at 40%
- D1Everything taxed at 45%
- 0TNo tax-free allowance
- NTNo tax taken off
- K475A K code: deductions bigger than allowances
- 1257L M1Standard code on a month 1 basis
- 1257L W1Standard code on a week 1 basis
- 1257L XStandard code, non-cumulative
- 1383MReceiving Marriage Allowance
- 1131NTransferred Marriage Allowance
- 1257TCode HMRC needs to review
- S1257LStandard code, Scottish taxpayer
- C1257LStandard code, Welsh taxpayer
- SBRScottish basic rate on everything
- SD0Scottish intermediate rate on everything
- SD1Scottish higher rate on everything
How a tax code is built
- The number is your tax-free pay for the year with the last digit chopped off. 1257 means £12,570 to £12,579: the standard Personal Allowance.
- The letter describes your situation. L is the standard allowance, M and N are Marriage Allowance, T means HMRC needs to review it, K means your deductions are bigger than your allowances.
- A prefix of S means Scottish rates apply and C means Welsh rates.
- W1, M1 or X at the end means the code is used on a week 1 / month 1 basis: each payday is taxed on its own, ignoring earlier paydays. It is still a normal code, usually issued after a change in circumstances part-way through the year.