Tax codes explained: 1257L, emergency codes, BR, 0T and K codes
6 minute read · 2026-10-08
Your tax code tells your employer how much of your pay to leave tax free before PAYE starts. In the 2026 to 2027 tax year the usual code is 1257L: the number is your Personal Allowance of £12,570 with the last digit removed, and L means you get the standard allowance. A wrong code is the commonest reason for paying too much or too little tax, and it is easy to fix.
The common codes
| Code | What it means |
|---|---|
| 1257L | Standard tax free allowance of £12,570 spread across the year. |
| 1257L W1, 1257L M1 or 1257L X | Emergency code (week 1, month 1, or non cumulative). You get the allowance for each pay period but no credit for earlier periods in the year. |
| BR | All pay from this job is taxed at the basic rate, 20%, with no tax free allowance. Normal on a second job. |
| 0T | No tax free allowance at all. Used when your allowance is used up, or when a new employer has no information about you. |
| D0, D1 | All pay taxed at the higher rate (40%) or additional rate (45%). For second incomes of higher earners. |
| NT | No tax taken from this income. |
| K followed by a number | You have income or benefits not taxed elsewhere that are worth more than your allowance, so tax is collected on extra pay. |
| M, N | Marriage Allowance: you have received (M) or given away (N) 10% of a partner's allowance. |
| S or C at the front | Scottish (S) or Welsh (C) income tax rates apply. |
The full list is on GOV.UK: what your tax code means.
Emergency codes and a new job
If you start a job without a P45, or with one that is out of date, your new employer will ask you to complete a starter checklist and may put you on an emergency code until HMRC sends the right one. Emergency codes are not a punishment and are usually corrected within a pay period or two. The cost of a "week 1" or "month 1" code is that any allowance you did not use earlier in the year is not given back until the code changes or the year ends. Hand over your P45 or fill in the starter checklist on day one to keep this short.
BR and 0T on your main job
A BR or 0T code on your only job usually means a mistake: HMRC thinks another job is using your allowance. On £12.71 an hour for 37.5 hours, a BR code takes about £95 a week in tax instead of about £47. If you have left the other job, tell HMRC and the code should be corrected, with the overpaid tax given back through payroll or by a refund.
Two jobs
With two jobs, your allowance normally goes on the main one and the second is taxed at BR. If the main job pays less than £12,570 a year, you can ask HMRC to split your allowance between the jobs so neither pays tax it does not owe.
K codes
A K code means HMRC is collecting tax on something that is not taxed at source, such as a company car, unpaid tax from an earlier year, or some state benefits. To stop a K code taking too much, there is a limit: the tax taken through a K code cannot be more than half of your pay for that period.
Scotland and Wales
An S code means Scottish rates: in 2026 to 2027 these run from a 19% starter rate to a 48% top rate, with a 21% intermediate rate from £16,957 of taxable income. On low pay the difference from England is small, a few pounds a month either way. A C code means Welsh rates, which are currently the same as in England. If you live in Scotland and your code has no S, or the other way round, tell HMRC.
How to check and fix your code
- Find your code on your payslip, P45 or P60, or in the HMRC app or your personal tax account.
- Check what HMRC thinks you earn from each job, and any benefits it has listed.
- Update anything wrong in the app or online. Your employer cannot change your code themselves; they can only use the one HMRC sends.
- Overpaid tax normally comes back through your pay once the code is corrected. If you have left the job, HMRC refunds it after the tax year ends, or earlier in some cases.
What to do next
Look at your latest payslip now: if the code ends W1, M1 or X, or reads BR or 0T on your only job, sort it out this week. Our payslip guide shows where the code sits, and take home pay at £12.71 an hour shows what the right code should leave you.
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