Your tax code tells your employer exactly how much tax-free income you’re entitled to and which rate to apply. It appears on your payslip and P60. Understanding it ensures you’re not overpaying or underpaying tax.
Common Tax Codes Explained
1257L is the most common code for 2025/26 — it means you have the standard personal allowance of £12,570. BR means all income is taxed at basic rate (20%), typically used for second jobs. D0 means all income is taxed at the higher rate (40%).
Special Tax Codes
K codes mean your deductions exceed your personal allowance (e.g. company car benefits), so tax is added rather than deducted. S prefix (e.g. S1257L) indicates Scottish tax rates apply. W1/M1 suffix indicates an emergency tax code where each pay period is calculated independently.
Enter your tax code above and we’ll explain exactly what it means and how it affects your pay.