If you have spotted the tax code 1257L on your payslip, you are not alone. It is the most common employee tax code in the UK for the 2025/26 tax year. Here is what it means and how it affects your take-home pay.

What Does Tax Code 1257L Mean?

The code 1257L means you receive the standard Personal Allowance of £12,570 in 2025/26. This is the amount you can earn before you pay Income Tax.

The letter L shows you qualify for the full allowance with no adjustments for benefits in kind, underpaid tax, or other factors.

How It Works

HMRC instructs your employer to apply the allowance across the year so you receive part of it in each pay period. If your pay in a period is below your tax-free amount for that period, no Income Tax is deducted. National Insurance may still apply.

Who Gets Tax Code 1257L?

You will usually have 1257L if you:

• Have one job or one pension
• Do not claim work-related expenses through your code
• Do not receive taxable benefits such as a company car
• Do not have underpaid tax carried over from a previous year

When the Tax Code Might Be Wrong

Common situations that lead to the wrong code include:

• Starting a new job and being put on an emergency code
• Changing employer mid-year
• Having more than one source of income, such as a second job or side income
• Receiving benefits in kind or claiming expenses that have not been reflected yet

You can check and update your code in your HMRC Personal Tax Account.

Where To Find Your Tax Code

• Your payslip
• Your P45 when you leave a job
• Your P60 at tax year end
• Your HMRC Personal Tax Account online

What If You Are On the Wrong Code?

If your code is too low you may overpay tax and be due a refund. If it is too high you could underpay and owe HMRC later. Correcting it sooner reduces the risk of a bill at year end. Try our take-home pay calculator to estimate your net pay with your current code.