What Is a PAYE Tax Code? (UK 2025/26)

Your PAYE tax code tells your employer how much of your income is tax-free so they can deduct the right amount of income tax from your salary each pay period. The standard tax code for 2025/26 is 1257L, which means you have a tax-free personal allowance of £12,570.

How to Read Your Tax Code

The number in your tax code represents your tax-free allowance — multiply it by 10 to get the pound amount. So 1257 means £12,570. The letter indicates your situation:

• L: You are entitled to the standard personal allowance
• M: You have received a transfer of 10% of your partner's personal allowance (Marriage Allowance)
• N: You have transferred 10% of your personal allowance to your partner
• S: Your income is taxed using Scottish rates
• C: Your income is taxed using Welsh rates
• BR: All income from this job is taxed at the basic rate (20%), with no personal allowance
• K: You have deductions that exceed your personal allowance (the number is added to your income rather than subtracted)

When Your Code Might Change

HMRC adjusts your tax code if your circumstances change — for example, if you start receiving a company benefit, owe tax from a previous year, start paying the Child Benefit High Income Charge through PAYE, or claim Marriage Allowance. You should check your tax code on your payslip regularly.

Emergency Tax Codes

If HMRC does not have enough information about you (for example, at the start of a new job), you may be put on an emergency tax code. This often results in overpaying tax until the correct code is issued. Common emergency codes include 1257L W1, 1257L M1, or 1257L X.