Tax code 1257L: what it means

How to read 1257L

A tax code is read in two steps: the number first, then the letter. GOV.UK explains each, and its guidance for employers shows the sum.

The number

The numbers in your tax code tell your employer or pension provider how much tax-free income you get from them in that tax year.

GOV.UK's guidance for employers says you usually multiply the number in a tax code by 10 to get the total amount of income that can be earned before being taxed. Its example: with the code 1257L, an employee can earn £12,570 before being taxed.

The letter

GOV.UK says the letter L means you are entitled to the standard tax-free Personal Allowance.

GOV.UK's guidance for employers says that with L, M and N, tax is deducted at the basic, higher and additional rates depending on the amount of taxable income: L for an employee entitled to the standard tax-free Personal Allowance, M where a spouse or civil partner has transferred some of their Personal Allowance, and N where the employee has transferred some of theirs to a spouse or civil partner.

Where the £12,570 comes from

The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. The current tax year is from 6 April 2026 to 5 April 2027.

Income above the allowance is taxed in bands. This is GOV.UK's table for someone with the standard allowance.

GOV.UK's table shows the Income Tax rate in each band for 2026 to 2027 if you have a standard Personal Allowance of £12,570. It says Income Tax bands are different if you live in Scotland.

The Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000, so it is zero if your income is £125,140 or above. You do not get a Personal Allowance on taxable income over £125,140.

GOV.UK says you may be able to earn more before you start paying Income Tax if you claim Blind Person's Allowance, and that this tax-free allowance is added to your Personal Allowance.

Why a code is not always 1257L

The standard code is the starting point. HMRC changes the number when something changes your tax-free amount.

To work out your individual number, HMRC starts with your tax-free Personal Allowance and takes off any income you have not paid tax on (such as untaxed interest or part-time earnings) and any other deductions in your tax code (such as company benefits or the High Income Child Benefit Charge). It then replaces the final digit with a letter.

GOV.UK's example: the standard Personal Allowance of £12,570 less a £1,570 medical insurance benefit from an employer leaves a tax-free amount of £11,000, which makes the code 1100L.

HMRC changes your tax code if you need to pay a different amount of tax. GOV.UK says this usually happens when your income or circumstances change, for example if you start a new job, get taxable state benefits, start to get income from an additional job or pension, earn savings interest above your Personal Savings Allowance, or your weekly State Pension amount changes.

GOV.UK also lists these reasons for a change: your employer tells HMRC you have started or stopped getting benefits from your job, you claim Marriage Allowance, you claim expenses that you get tax relief on, you are paying the High Income Child Benefit Charge through your wages or pension, you need to pay back the Winter Fuel Payment or Pension Age Winter Heating Payment, or you have been on the wrong tax code and owe tax.

1257L with an ending

GOV.UK's guidance for employers says 1257L is an emergency tax code only if it is followed by W1, M1 or X, and that emergency codes can be used if a new employee does not have a P45.

GOV.UK says you are on an emergency tax code if your tax code ends in W1 (used when you are paid weekly, for example 1257L W1), M1 (used when you are paid monthly, for example S875L M1) or X (used when your pay dates vary, for example C663L X). You could also see NONCUM on your payslip, depending on your employer's payroll software.

The endings are explained on their own page, with what GOV.UK says happens next.

• Emergency tax codesW1, M1, X and NONCUM

With an S or a C in front

GOV.UK says your tax code will be S1257L if you pay Scottish Income Tax and get the standard Personal Allowance of £12,570.

You pay tax at the Welsh rates through PAYE if you are employed, or have it deducted by your provider if you get a pension. GOV.UK says HMRC will add a C to the start of your tax code so that you pay the right rates.

• Scottish codesScottish rates and the S codes
• Welsh codesWelsh rates and the C codes

If the code looks wrong

HMRC usually updates your tax code using information it gets from your employer or pension provider. GOV.UK says that if your tax code is wrong, it is usually because HMRC has incorrect or missing information, and that to correct it you check and update the details HMRC has about you.

GOV.UK says using the online service is the quickest way to check and update your details: sign in to the Check your Income Tax online service, check your employment, pension, estimated taxable income, company benefit and expenses details, and update your details if there is anything wrong or missing.

If you think your tax code is wrong and you cannot use the online service, GOV.UK says you can contact HMRC. HMRC's Income Tax enquiries line is 0300 200 3300. The Income Tax enquiries line is open Monday to Friday, 8am to 6pm, and closed on bank holidays.

• Tax code notice (P2)The letter HMRC sends when your code changes

GOV.UK pages on this

• GOV.UK: Tax codesGOV.UK's Tax codes guide: how to find your code and what each part of the guide covers.
• GOV.UK: What your tax code meansGOV.UK's page on what your tax code means: the numbers, the letters and a worked example.
• GOV.UK: Income Tax rates and Personal AllowancesGOV.UK's Income Tax rates and Personal Allowances page for the current tax year.
• GOV.UK: Check what your tax code meansGOV.UK's tax code checker, which explains the letters and numbers in a code.

Quick answers