What does tax code 1257L mean? (UK 2026/27)

What does tax code 1257L mean?

For 2026/27, 1257L is the code HMRC says is used for most people with one job or pension. The number represents the standard Personal Allowance of £12,570; the L indicates the standard allowance.

A code alone cannot confirm that your tax is correct. HMRC can adjust codes for more than one income source, taxable benefits, other income or changes to an allowance.

What do the number and letter mean?

GOV.UK has a complete list of tax-code letters, including M and N for Marriage Allowance, T where HMRC needs to review the code, and K where deductions are greater than the allowance.

How does HMRC work out the number?

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

Example: you are entitled to the standard £12,570 allowance, but your employer gives you medical insurance worth £1,570. That is a company benefit, so £1,570 comes off the allowance, leaving £11,000 tax-free. Your code would be 1100L, not 1257L. Your allowance is usually split into equal weekly or monthly amounts across the year.

When should I check 1257L?

• You have more than one job or pension.
• Your income, benefits or other taxable income have changed.
• You have recently changed job and the code is marked W1, M1 or X.
• Your payslip does not match the code in your Personal Tax Account.

HMRC's tax-code checker explains what each code means and the Check your Income Tax service lets you review the details HMRC holds.

What if I have a second job?

You have one Personal Allowance for the tax year, not one for each employer. HMRC will usually use a different tax code for another job or pension, so 1257L may be right for one income source but not both.

Read our tax on a second job guide for the PAYE, starter-checklist and self-employed-side-work boundaries.

What is the difference between 1257L and 1257L W1/M1?

W1 and M1 mean tax is worked out for the current week or month rather than cumulatively. GOV.UK describes W1, M1 and X as emergency tax-code markers. If you have recently changed jobs, provide your P45 where available or complete the Starter Checklist with your employer.

See our emergency tax-code guide for that specific question, and our 0T tax-code guide if no Personal Allowance is showing at an income source.

How do I change my tax code?

Usually HMRC updates your code from information your employer or pension provider sends, so a wrong code is normally down to incorrect or missing information. Sign in to the Check your Income Tax service, check your employment, pension, estimated taxable income, company benefit and expenses details, and update anything wrong or missing. If you have left a job and did not get a P45, ask your old employer for one.

If the code needs to change, HMRC tells you and your employer the new code within 15 working days. Monthly pay: it should show on your next or the following payslip. Weekly pay: your third payslip. If you have just started a job, HMRC says to wait 35 days for it to receive your new income details before contacting it.

Read the GOV.UK tax codes guidance.