If you’ve checked your payslip and noticed the tax code 1257L, you’re not alone — it’s the most common tax code in the UK for the 2025/26 tax year. But what does it actually mean, and how does it affect your take-home pay?

What Does Tax Code 1257L Mean?

The tax code 1257L means you’re entitled to the standard Personal Allowance — which is £12,570 in 2025/26. This is the amount of income you can earn before paying any income tax.

The “L” suffix indicates you qualify for the full allowance, and there are no tax code adjustments due to underpaid tax, company benefits, or other income sources.

How It Works

If your tax code is 1257L, HMRC tells your employer to deduct tax only on earnings above £12,570 per year. The tax is spread across your payslips, so you get the allowance gradually each month:

• Annual tax-free allowance: £12,570
• Monthly tax-free amount: £1,047.50
• Weekly tax-free amount: £242.50

This means if you earn under these amounts in a pay period, no tax is deducted (though you’ll still pay National Insurance).

Who Gets Tax Code 1257L?

You’ll normally have the 1257L code if:

• You have one job or pension
• You’re not claiming any job-related expenses
• You don’t have taxable benefits like a company car
• You haven’t underpaid or overpaid tax in previous years

When the Tax Code Might Be Wrong

HMRC sometimes applies the wrong code — especially if you’ve:

• Started a new job recently
• Switched employers mid-year
• Have multiple sources of income (e.g. a side hustle)
• Are claiming work-related expenses or benefits

If you think your tax code is incorrect, you can check and update it through your HMRC Personal Tax Account.

How to Check Your Tax Code

You’ll usually find your tax code on:

• Your payslip
• Your P45 (if you’ve left a job)
• Your P60 (end-of-year tax summary)
• Your Personal Tax Account online

What Happens If You’re on the Wrong Tax Code?

If your tax code is too low, you may overpay tax and need a refund. If it’s too high, you might underpay tax and owe HMRC later. Either way, it’s worth correcting quickly to avoid surprises.

You can use our take-home pay calculator to estimate your net salary based on your income and tax code.

Summary

The tax code 1257L is the default for most UK employees and means you’re getting the full tax-free Personal Allowance of £12,570. If everything in your tax situation is simple and up to date, you likely don’t need to do anything — but it’s always good to double-check.