Key facts
- 1257L is the most common code for 2025/26, giving the standard £12,570 Personal Allowance.
- BR means all income from that job is taxed at 20% — typically a second job.
- 0T means no Personal Allowance is available — all earnings are taxed.
- K codes mean you owe more than your allowance — the code adds to your taxable income.
- Scottish taxpayers have an S prefix (e.g. S1257L); Welsh taxpayers have a C prefix.
Understanding Common Tax Codes
HMRC assigns a tax code to every employee and pension recipient. The code determines how much tax-free pay you receive and at what rate the rest is taxed. Below is a comprehensive guide to the most common codes you will encounter.[1]
1257L — The Standard Code
1257L is by far the most common tax code for the 2025/26 tax year. It means:
- You are entitled to the standard Personal Allowance of £12,570
- Earnings up to £12,570 are tax-free; the remainder is taxed at the appropriate rates
- You have no adjustments (no benefits in kind, no underpayments, no Marriage Allowance)
Most employees with a single job and no complications will have this code.
L, M, and N Suffix Codes
| Code | Meaning | Personal Allowance |
|---|---|---|
| 1257L | Standard Personal Allowance | £12,570 |
| 1382M | Marriage Allowance recipient (received £1,260 transfer) | £13,830 |
| 1131N | Marriage Allowance transferor (given £1,260 to partner) | £11,310 |
BR, D0, and D1 — Flat-Rate Codes
These codes have no number — they apply a flat tax rate to all income from that employment:[1]
| Code | Tax Rate | Typical Use |
|---|---|---|
| BR | 20% on all earnings | Second job where the Personal Allowance is used by the first job |
| D0 | 40% on all earnings | Second job for a higher-rate taxpayer |
| D1 | 45% on all earnings | Second job for an additional-rate taxpayer |
Important: If you are on a BR code but only have one job, HMRC may not have updated your code correctly. Check your Personal Tax Account and request a review if necessary.
0T — No Personal Allowance
A 0T code means no tax-free allowance is available. All earnings are taxed at the applicable rates (20%, 40%, 45%). This happens when:
- Your Personal Allowance is fully used by another employer
- HMRC does not have enough information to issue a specific code
- Your income exceeds £125,140, at which point the Personal Allowance is fully withdrawn
- Your employer does not have your P45 or a starter checklist
K Codes — Negative Allowance
A K code means the total of your deductions (benefits in kind, underpayments, etc.) is more than your Personal Allowance. Instead of giving you tax-free pay, the code adds to your taxable income.[1]
Example: K500
- The code adds £5,000 to your taxable income for the year
- If you earn £30,000, you are taxed as if you earned £35,000
- This might happen if you have a £17,570 company car benefit: £12,570 Personal Allowance − £17,570 = −£5,000
HMRC limits K code deductions so that no more than 50% of your gross pay is collected as tax in any pay period. This prevents the code from reducing your pay to an unreasonably low amount.
NT — No Tax
The NT code means no tax is deducted from your earnings. This is rare and applies in specific situations, such as:
- Non-resident entertainers or sportspeople with a special exemption
- Certain diplomatic staff
- People whose entire income falls within tax exemptions
Scottish (S) and Welsh (C) Prefixes
If you live in Scotland, your tax code starts with S (e.g. S1257L). If you live in Wales, it starts with C (e.g. C1257L).[3]
Scottish taxpayers pay Scottish Income Tax rates, which differ from the rest of the UK:
| Band | Scottish Rate (2025/26) | Rest of UK Rate |
|---|---|---|
| Starter rate | 19% (£12,571–£14,876) | — |
| Basic rate | 20% (£14,877–£26,561) | 20% (£12,571–£50,270) |
| Intermediate rate | 21% (£26,562–£43,662) | — |
| Higher rate | 42% (£43,663–£75,000) | 40% (£50,271–£125,140) |
| Advanced rate | 45% (£75,001–£125,140) | — |
| Top rate | 48% (above £125,140) | 45% (above £125,140) |
Welsh taxpayers currently pay the same rates as England and Northern Ireland, but the Welsh Government has the power to vary them.
Frequently Asked Questions
Why do I have a BR code?
A BR code means all income from that employment is taxed at 20% basic rate. This typically happens because your Personal Allowance is already being used by your main employment. If you only have one job and are on BR, it is likely an error — contact HMRC to have it corrected.
What does a K code mean for my pay?
A K code means you have deductions or benefits that exceed your Personal Allowance. Instead of giving you tax-free pay, the code adds an amount to your taxable income. For example, K500 adds £5,000 to your taxable pay. This commonly happens if you have a large company car benefit or significant untaxed income. However, HMRC limits the tax deducted to 50% of your pay in any period.
What is the difference between 1257L and S1257L?
Both give the same Personal Allowance of £12,570. The difference is the tax rates applied: 1257L uses English/NI rates (20%, 40%, 45%), while S1257L uses Scottish rates (19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced, 48% top). If you live in Scotland, HMRC automatically applies the S prefix.
I have been given a 0T code — is this right?
A 0T code means no Personal Allowance is being applied to that employment. This happens if your allowance is used by another employer, if HMRC does not have enough information to issue a specific code, or if your income exceeds £125,140 (at which point the Personal Allowance is fully withdrawn). Check your tax code through your HMRC Personal Tax Account to make sure it is correct.
Further Reading
- How Tax Codes Work — anatomy of a tax code and how HMRC calculates yours
- Emergency Tax Codes — temporary codes and how to resolve them
- Checking & Correcting Your Tax Code — what to do if your code is wrong
- Cumulative vs Week 1 / Month 1 — how non-cumulative codes affect your tax
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Sources
- Tax codes — GOV.UK
- Income Tax rates and Personal Allowances — GOV.UK
- Scottish Income Tax — GOV.UK