UK Tax Codes Explained

Understanding tax codes K, BR, NT, 0T, D0, D1 & 1257L - How they affect your take-home pay and what they mean for your salary

What is a Tax Code?

Your UK tax code tells your employer how much Income Tax to deduct from your salary or pension. It's made up of numbers and letters that indicate your tax-free Personal Allowance and any adjustments HMRC has made. Getting your tax code wrong means you could pay too much or too little tax throughout the year.

Common UK Tax Codes

Click on any tax code below to see detailed explanations, examples, and how it affects your take-home pay

1257L

1257L Tax Code - Standard Personal Allowance

The most common UK tax code for 2024/25. Means you have the full £12,570 tax-free allowance.

BR

BR Tax Code - Basic Rate

All your income is taxed at 20% basic rate with no tax-free allowance. Common for second jobs.

D0

D0 Tax Code - Higher Rate

All your income is taxed at 40% higher rate with no tax-free allowance.

D1

D1 Tax Code - Additional Rate

All your income is taxed at 45% additional rate with no tax-free allowance.

K

K Tax Code - Negative Allowance

Your deductions exceed your allowances, so extra tax is deducted from your pay.

0T

0T Tax Code - No Allowance

Your Personal Allowance has been used up or you've started a new job without a P45.

NT

NT Tax Code - No Tax

You're not paying any tax on this income source.

What the Letters Mean

L

You're entitled to the standard Personal Allowance

M

Marriage Allowance: you've received a transfer of 10% of your partner's Personal Allowance

N

Marriage Allowance: you've transferred 10% of your Personal Allowance to your partner

S

Your income is taxed using Scottish Income Tax rates

C

Your income is taxed using Welsh Income Tax rates

T

Your tax code includes other calculations, HMRC needs to review your tax

0T

Your Personal Allowance has been used up, or you've started a new job without a P45

NT

No Tax: you're not paying any tax on this income

How to Check Your Tax Code

You can find your tax code in several places:

  • Payslip: Check your monthly payslip - it's usually at the top
  • P60: Your end-of-year certificate from your employer
  • P45: Given to you when you leave a job
  • HMRC Online: Sign in to your personal tax account at gov.uk
  • PAYE Coding Notice: HMRC sends you one when your tax code changes

Emergency Tax Codes

You might be put on an emergency tax code when:

  • You start a new job and don't have a P45
  • You start working for an employer after being self-employed
  • You get company benefits or the State Pension

Common emergency codes: 1257L W1, 1257L M1, 1257L X

Emergency codes usually work on a non-cumulative basis, meaning you might pay too much tax initially. This should correct itself automatically, or you can reclaim it from HMRC.

What If My Tax Code is Wrong?

If you think your tax code is wrong, you should contact HMRC as soon as possible:

Online:

Sign in to your personal tax account at gov.uk/personal-tax-account

Phone:

Call the HMRC Income Tax helpline on 0300 200 3300

What you'll need:

Your National Insurance number, recent payslips, P60 or P45, and details of what you think is wrong

When Your Tax Code Changes

Your tax code can change when:

  • You start or stop getting a work benefit (like a company car)
  • You start or stop receiving job expenses
  • HMRC has worked out you paid too much or too little tax in a previous year
  • You start or stop getting benefits like State Pension or Employment and Support Allowance
  • Your employer tells HMRC you've started or stopped working for them

HMRC will send you a PAYE Coding Notice (P2) explaining why your tax code has changed and what it means for you.

Calculate Your Tax Code

Use our Tax Code Calculator to understand what your tax code means and how much tax-free allowance you have.

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