# What does my tax code mean? 1257L, BR, 0T and K explained

URL: https://computenow.co.uk/guides/tax-codes-explained/

> What your tax code means in 2026/27: 1257L, M, N, K, BR, D0, 0T and emergency codes, and how much each changes your take-home pay.

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# What does my tax code mean? 1257L, BR, 0T and K explained

Your tax code tells your employer how much of your pay is tax-free. Here is how to read every part of it, and what each code does to your pay.
Published 18 October 2026UK
By the ComputeNow team, checked against GOV.UK and HMRC[Sources (4)](#sources)[How we calculate](https://computenow.co.uk/methodology/)

## Key points

- **Multiply the number by 10** to get your tax-free pay for the year: 1257L means £12,570.
- **The letter says why.** L is the standard allowance, M and N are Marriage Allowance, K means you owe tax on more than your allowance.
- **BR, D0 and 0T have no tax-free pay**: every pound is taxed. They are normal on a second job, but costly on your only job.
- **A code of 1100L instead of 1257L costs £26.17 a month** on £35,000.

Work out your own
Type in the code from your payslip to see what it means and what it does to your pay.[Open the tax code checker](https://computenow.co.uk/tax-code-checker/)

## How to read your tax code

Most codes are a number followed by a letter. Multiply the number by 10 and you have the pay you can earn in the tax year before Income Tax starts. 1257L means £12,570: the standard Personal Allowance for 2026/27.
A bigger number means more tax-free pay, for example if you claim tax relief on work expenses. A smaller number means less, usually because HMRC is collecting tax on a company benefit such as a car or medical insurance, on income that isn't taxed another way, or on tax you underpaid in an earlier year.
A letter at the start says which rates apply: S for Scotland and C for Wales. Welsh rates are currently the same as in England.

## What the letters mean

| Letter | Meaning |
| --- | --- |
| L | The standard tax-free Personal Allowance. |
| M | Marriage Allowance received: your partner has transferred £1,260 of their allowance to you. |
| N | Marriage Allowance given: you have transferred £1,260 of your allowance to your partner. |
| T | Other adjustments, for example an allowance reduced because your income is over £100,000. |
| K | You have untaxed income or benefits worth more than your allowance; the number is added to your taxable pay. |

## Codes without a number

- **BR**: all pay taxed at the basic rate, 20%.
- **D0**: all pay taxed at the higher rate, 40%. **D1**: the additional rate, 45%.
- **0T**: no tax-free pay, but the normal bands apply, starting at 20%.
- **NT**: no tax is taken at all.
BR and D codes are normal on a second job or a second pension, where your main job already uses your allowance. In Scotland they start with S and use Scottish rates.

## What each code does on £35,000

The same salary of £35,000 a year, taxed under different codes (England, Wales and Northern Ireland, no pension or student loan):

| Code | Tax-free pay | Income Tax a year | Take-home a month | Against 1257L |
| --- | --- | --- | --- | --- |
| 1257L | £12,570 | £4,486.00 | £2,393.30 | — |
| 1100L | £11,000 | £4,800.00 | £2,367.13 | −£26.17 |
| 1383M | £13,830 | £4,234.00 | £2,414.30 | +£21.00 |
| 1131N | £11,310 | £4,738.00 | £2,372.30 | −£21.00 |
| K475 | £0 | £8,360.00 | £2,070.47 | −£322.83 |
| 0T | £0 | £7,000.00 | £2,183.80 | −£209.50 |
| BR | £0 | £7,000.00 | £2,183.80 | −£209.50 |
| D0 | £0 | £14,000.00 | £1,600.47 | −£792.83 |

K475 adds £4,750 to your taxable pay, so you pay £8,360.00 a year in Income Tax. PAYE never takes more than half of any payday's pay in tax on a K code; anything left is collected later.

## Why has my tax code changed?

HMRC changes your code when something that affects your tax-free pay changes. The common reasons are:

- A new tax year, when allowances or the standard code change.
- A new job, or a second job, especially before your employer has your P45.
- A company benefit starting or stopping, such as a car or medical insurance.
- Tax you underpaid in an earlier year being collected through your pay.
- Income that isn't taxed at source, such as the State Pension, rent or savings interest over your allowance.
- Marriage Allowance, Gift Aid, pension contributions or work expenses you have claimed.
Your HMRC online account shows the reason for each change. If one is wrong, tell HMRC and they will send your employer a corrected code.

## Emergency codes: W1, M1 and X

A code ending in W1, M1 or X is on an emergency basis. Each payday is taxed as if it were the first of the tax year, without counting earlier pay and tax. It is common in a new job before your employer has your P45 or HMRC has your details, and it can mean too much tax in some months. Once HMRC sends a normal code, the next payslip usually puts it right.

## If your code is wrong

Check your code against what you expect: the standard 1257L, minus any benefits you get, plus any expenses you claim. If something is wrong, for example a benefit you no longer have or a job you have left, tell HMRC through your online account, the HMRC app or by phone. They will send your employer a new code, and any tax you overpaid comes back through your pay or as a refund after the tax year ends.

## Bottom line

For most people the right code is 1257L, or S1257L in Scotland. Any other code means HMRC is adjusting your tax-free pay for a reason: check that the reason is right, because a wrong code means paying the wrong tax all year.

## Tips

- Check your code at the start of each tax year and whenever you change job, start a pension or get a company benefit.
- You can see why your code is what it is in your HMRC online account or the HMRC app, which lists each adjustment.
- If you have two jobs, your full allowance usually goes on the job that pays most. If the second job pays more, ask HMRC to move it.
This guide explains the rules; it is not personal financial advice.

## Related

[Tax code checker What your tax code means for your pay](https://computenow.co.uk/tax-code-checker/)[Take-home pay calculator Your pay after Income Tax and NI](https://computenow.co.uk/take-home-pay/)[Two jobs tax calculator How a second job is taxed](https://computenow.co.uk/two-jobs-tax-calculator/)

## Guides and help

### Our guides

[Why is my pay different this month? The usual reasons a payslip changes, whether it evens out, and who to ask](https://computenow.co.uk/guides/why-is-my-pay-different-this-month/)[How Income Tax bands work in 2026/27 Personal Allowance, basic, higher and additional rate](https://computenow.co.uk/guides/income-tax-bands-2026-27/)

### Official services and free advice

[Check your Income Tax for this year GOV.UK: your tax code and pay so far](https://www.gov.uk/check-income-tax-current-year)[Tax codes explained GOV.UK: what yours means, and fixing a wrong one](https://www.gov.uk/tax-codes)[Understanding your payslip GOV.UK: deductions and your rights](https://www.gov.uk/understanding-your-pay)

## Article sources

Each source was last checked on 18 October 2026.

- [GOV.UK: Income Tax rates and Personal Allowances](https://www.gov.uk/income-tax-rates)
- [GOV.UK: Rates and thresholds for employers 2026 to 2027](https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027)
- [GOV.UK: Scottish Income Tax](https://www.gov.uk/scottish-income-tax)
- [GOV.UK: Tax codes](https://www.gov.uk/tax-codes)
These results are an estimate, not financial advice. They use the 2026/27 rates in force on 24 October 2026 and the inputs shown, so your actual tax, pay or costs may differ. Before making a decision about your money, check the figures with HMRC or your provider, or speak to a regulated financial adviser. Free, impartial guidance is available from MoneyHelper.
This page explains the rules using the 2026/27 rates in force on 24 October 2026. It is general information, not financial advice. For decisions about your own money, speak to a regulated financial adviser, or get free, impartial guidance from MoneyHelper.