🇬🇧 United Kingdom

Tax Code Calculator

Decode your HMRC tax code for 2025/26. Find out what each part means, see the impact on your monthly pay, and get step-by-step help fixing common tax code problems.

Found on your payslip, P45, P60, or HMRC coding notice (P2)
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How to Use This Calculator

Decode My Tax Code tab

Enter any HMRC tax code (e.g. 1257L, S1257L, BR, K500) and the calculator breaks it down: what the number means, what the letter means, whether it includes a Scottish (S) or Welsh (C) prefix, and whether emergency tax (W1/M1) applies. It shows your effective Personal Allowance and flags anything unusual.

Impact on Pay tab

Enter your tax code and gross salary to see exactly how much income tax you pay per month and per year under your current code. The calculator compares this against the standard 1257L code so you can see if you are overpaying or underpaying and by how much.

Common Problems tab

Select from five common tax code problems — BR on a main job, emergency W1/M1, K codes, wrong country prefix, and 0T with no allowance. Each scenario explains what is happening, shows a worked example with real numbers, and gives step-by-step instructions to fix it.

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Every input is encoded in the URL. Click Share to send your exact scenario to an accountant, employer, or save it for later reference.

How UK Tax Codes Work

Your tax code tells your employer how much income tax to deduct from your pay. It is set by HMRC and usually appears on your payslip, P45, P60, and HMRC coding notice (P2).

Decoding the number:
Number in tax code × 10 = your annual tax-free Personal Allowance

Example: 1257L → 1257 × 10 = £12,570 tax-free allowance

Decoding the letter:
L = standard Personal Allowance
M = Marriage Allowance recipient (+10% of partner's PA)
N = Marriage Allowance transferor (-10% of your PA)
T = HMRC is making other adjustments
BR = all income taxed at 20% (no allowance)
D0 = all income taxed at 40%
D1 = all income taxed at 45%
NT = no tax deducted
0T = no Personal Allowance applied
K = negative allowance (deductions exceed your PA)

Prefixes:
S = Scottish taxpayer (6 tax bands, up to 48%)
C = Welsh taxpayer (same rates as England for 2025/26)

Suffixes:
W1 / M1 / X = emergency (non-cumulative) basis

The standard code for 2025/26 is 1257L, giving everyone the £12,570 Personal Allowance. If you earn over £100,000, your allowance is reduced by £1 for every £2 above £100,000 and reaches £0 at £125,140.

Example

Sarah — Marketing Manager, 34, Bristol

Sarah earns £42,000 and has just started a new job. Her payslip shows tax code 1257L M1 (emergency). She wants to know what this means and how much extra tax she might be paying.

Decode tab

Tax code1257L M1
Number1257
Allowance£12,570
LetterL (standard Personal Allowance)
Emergency flagM1 (non-cumulative, monthly)

Sarah's code gives her the correct £12,570 allowance, but the M1 suffix means each month is calculated independently. She should provide her P45 to her new employer so HMRC can issue a cumulative code.

Impact on Pay tab

Tax code1257L
Gross salary£42,000
Annual income tax (1257L)£5,886
Monthly income tax£491
Annual take-home (before NI)£36,114
Monthly take-home (before NI)£3,010

With the correct cumulative 1257L code, Sarah pays £5,886 in income tax per year (£491/month). The emergency M1 code gives the same monthly amount but cannot make mid-year adjustments, so she should get it corrected promptly.

FAQ

The standard tax code for 2025/26 is 1257L. This gives you a Personal Allowance of £12,570 — the amount you can earn before paying income tax. In Scotland it appears as S1257L, and in Wales as C1257L. The Personal Allowance has been frozen at £12,570 since 2021/22 and is expected to remain frozen until at least April 2028.
W1 (week 1) and M1 (month 1) mean your employer is calculating tax on a non-cumulative basis. Instead of spreading your annual allowance across the full tax year, each pay period is treated independently as if it were the first week or month. This is an emergency measure used when HMRC does not have your full details — typically when you start a new job without providing a P45. It often results in overpaying tax, especially in the later months of the tax year.
If you have one job and earn under £100,000 with no benefits in kind, your code should be 1257L (or S1257L in Scotland, C1257L in Wales). If it is different, check your HMRC coding notice (form P2) which explains how your code was calculated. You can also check via your Personal Tax Account at gov.uk or call HMRC on 0300 200 3300. Common reasons for a non-standard code include company car, private medical insurance, underpaid tax from previous years, or Marriage Allowance.
A K code means your taxable deductions (benefits in kind, underpaid tax) exceed your Personal Allowance. The number after K, multiplied by 10, is the amount added to your taxable income. For example, K500 adds £5,000 to your taxable pay. K codes are not necessarily wrong — they are legitimate when you have significant benefits like a company car. However, you should check your HMRC coding notice (P2) to verify the deductions are accurate. There is a safety net: tax collected via a K code cannot exceed 50% of your gross pay in any period.
It depends on your income. For 2025/26, Scotland has six income tax bands compared to three in England. At lower incomes (below roughly £28,000), Scottish taxpayers pay slightly less due to the 19% starter rate. At middle and higher incomes, Scottish taxpayers generally pay more — the higher rate is 42% (vs 40% in England) and the top rate is 48% (vs 45%). For example, on a £50,000 salary, a Scottish taxpayer pays around £300-400 more per year than someone in England. The Personal Allowance (£12,570) is the same across the UK.

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