List of Tax Codes and What They Mean (UK)

Finance

List of Tax Codes and What They Mean – The UK PAYE Tax Code Guide

Frederick

January 4, 2026

Table of Content

If you’ve ever looked at your payslip and wondered why your take-home pay changed, your tax code is usually the first clue.

This guide explains list of tax codes and what they mean in plain UK terms, so employees (and busy payroll teams) can spot what’s normal, what’s temporary, and what needs fixing.

List of Tax Codes and What They Mean – The UK PAYE Tax Code Guide

What is a PAYE Tax Code and Why Does it Matter On Your Payslip?

A PAYE tax code is the instruction HMRC sends to your employer (or pension provider) to work out how much Income Tax to deduct from your pay.

In everyday terms, it affects:

how much tax-free pay you get during the year
whether you’re taxed as if this is your main job or a second income
whether payroll is using a temporary/emergency method while HMRC catches up

Where To Find Your Tax Code?

You’ll usually see it on your payslip, your P60, a tax code notice from HMRC, or in your HMRC online account.

What a tax code actually controls?

It doesn’t change your salary — it changes how your tax-free allowance and tax bands are applied through payroll.

How to read a tax code numbers vs letters in plain English?

Most UK tax codes have a number and a letter (sometimes with extra bits at the end).

What the numbers mean?

A common rule of thumb: the number often reflects your tax-free allowance (personal allowance) with the last digit removed.
Example: 1257 typically relates to £12,570 of tax-free allowance for the tax year.

What the letters mean?

The letter tells payroll how to treat that allowance (or why you may not have one).

Cumulative vs non-cumulative (the “catch-up” difference)

Cumulative codes look at your pay and tax so far this tax year, helping correct earlier over/under deductions.
Non-cumulative (often shown by W1/M1/X) calculate tax per pay period only, which can feel harsher until corrected.

Quick Reference Table: Common UK Tax Codes List and What they Mean?

Use this as a quick “decode and decide” guide.

Tax code	What it usually means	Typical situation	What to do next
1257L	Standard personal allowance applied	One main job/pension, straightforward PAYE	Usually nothing — keep an eye if pay changes suddenly
BR	All income taxed at basic rate	Second job or pension	Check you’re using the right job as your “main” income
0T	No personal allowance applied	Allowance used elsewhere / new starter details missing / higher income scenarios	Check HMRC has your correct income and job details
D0	All income taxed at higher rate	Second job/pension where higher rate applies	Confirm it’s genuinely a second income or higher-rate situation
D1	All income taxed at additional rate	High earners’ secondary income	If unexpected, check your estimated annual income info
NT	No tax deducted	Specific situations (rare for most employees)	Treat as a prompt to double-check why it applies
K (e.g., K500)	“Negative” allowance (tax owed collected via payroll)	Benefits in kind, underpaid tax from earlier year	Check your HMRC notice; act if it doesn’t match reality

1257L — What It Means and Who Usually Gets It?

This is the most common “standard” code when the normal personal allowance is applied and there are no major adjustments.

BR, 0T, D0, D1 — Why These Often Show Up On second Jobs?

Payroll often uses these when HMRC expects your tax-free allowance is already used by your main job — so the second income is taxed from the first pound.

K codes — Why Your Allowance Can Look Backwards?

A K code can happen when adjustments (like taxable benefits or unpaid tax) outweigh your allowance, so payroll collects extra tax each pay period.

Explain the Letters in Tax Code?

This table focuses on the letters you’ll see most often.

Letter	What it usually signals	Common trigger
L	Standard personal allowance	Most employees with one main job
M / N	Marriage Allowance transfer involved	One spouse/civil partner transfers allowance
T	HMRC needs to review/has other calculations	Income/benefits estimates, adjustments, or limits applied
K	Deductions exceed allowance (extra tax collected)	Benefits in kind or earlier underpayment collected

What Does “L” Mean in a Tax Code?

It typically means you’re on the standard personal allowance, with tax taken at the normal rates as your income rises.

What Do “M” and “N” Mean in a Tax Code?

They commonly relate to Marriage Allowance — one partner can transfer a portion of their allowance, affecting both codes.

What Does “T” Mean in a Tax Code?

Often used when HMRC needs to keep the code under review due to calculations or limits affecting the allowance.

Emergency Tax Code: List and How to Tell If You’re On One?

If your tax code ends in W1, M1, or X, payroll is using a temporary “per-pay-period” calculation.

W1: Week 1 basis (weekly payroll)
M1: Month 1 basis (monthly payroll)
X: Used when pay frequency varies

Why Emergency Tax Happens?

Common triggers include starting a new job without the right starter details, delays in P45 processing, or HMRC not having up-to-date income information.

How Long Emergency Tax Lasts?

Often it’s temporary — but it can persist if the underlying information isn’t corrected. Here’s what you can do next: make sure HMRC has your current job details and that your employer has applied the latest code notice.

Scottish and Welsh Tax Codes (S and C prefixes) — What’s Different?

If you’re classed as a Scottish or Welsh taxpayer, your code may have a prefix that tells payroll which income tax rates to apply.

Prefix	What it indicates	Example	What changes
S	Scottish taxpayer rates apply	S1257L	Scottish bands/rates used for Income Tax
C	Welsh taxpayer rates apply	C1257L	Welsh bands/rates used for Income Tax

What To Do If You Moved Mid-Year or Live Near A Border?

If your main home changed, it’s worth checking your HMRC record matches where you live — because the prefix is tied to taxpayer status, not where your employer is based.

Why HMRC Changes Tax Codes?

Tax codes change for lots of ordinary reasons, including:

you start/leave a job, or you take a second job
you begin receiving a taxable benefit (for example, a company car)
your pension and employment income overlap
HMRC updates its estimate of your annual income or collects earlier underpaid tax

“Is My Tax Code Wrong?” Signs to Watch For and When it’s Actually Fine?

A changed tax code isn’t automatically bad news — but it’s worth a quick sense-check.

Common themes in typical discussions (especially among employees juggling multiple incomes) include confusion when:

take-home pay drops suddenly after a job change
someone spots W1/M1 and assumes it’s permanent
a second job is taxed heavily, even though it’s normal for BR/D0/D1
a code changes after benefits in kind are added (and people don’t connect the dots)

A simple check before you panic

Compare your current code with:

whether this is your main job or second income
whether you recently changed jobs, started a pension, or gained benefits
whether the code includes W1/M1/X (temporary basis)

How to Check and Update Your Tax Code Without Getting Lost?

You don’t need to “guess” the fix — you mainly need your details correct in HMRC’s records.

Have this ready before you check?

your National Insurance number
employer/pension provider name (and payroll reference if you have it)
an idea of any other incomes (second job, pension, benefits)

Let’s explore the practical approach: if something looks off, update the details HMRC holds (especially around new jobs, second incomes, and benefits), then check that your employer has applied the latest code notice.

What are the Practical examples?

Two jobs

It’s common for the main job to use a standard allowance-based code, while the second uses BR/D0/D1 so the allowance isn’t duplicated.

New starter

A new job can trigger a temporary basis (W1/M1/X) until HMRC receives enough information to apply the correct cumulative code.

Company benefits

Benefits in kind can reduce the tax-free amount available through PAYE, sometimes pushing the code into an adjusted or K-code situation.

Conclusion: What Are The Simplest Way to Interpret Any Tax Code in 30 Seconds?

Look for W1/M1/X (temporary basis).
Check whether this is your main job or a second income (BR/D0/D1 often appear on second incomes).
If the result doesn’t match your situation, it’s a prompt to verify your HMRC details — not a reason to panic.

Author expertise note: This guide is written from a UK small-business and payroll perspective, based on common PAYE scenarios employers and employees regularly encounter when codes change.

What are the FAQ About List of Tax Codes and What They Mean?

1. What are the most common UK tax codes and what do they mean?

Typically, 1257L is common for a main job; BR/0T/D0/D1 appear often for second incomes or where no allowance is applied; W1/M1/X indicates a temporary basis.

2. What does BR mean and will I be overtaxed?

BR usually means that income is taxed at the basic rate from the first pound — often normal for a second job or pension. If it’s your only job, it may be worth checking.

3. What does 0T mean and how do I fix it?

0T often means no personal allowance is being applied via that payroll. If it’s unexpected, the “fix” is usually ensuring HMRC has the right job and income details.

4. What does K mean and why is it negative?

A K code can mean tax is being collected for adjustments that outweigh your allowance (for example taxable benefits or previous underpayment). It’s worth checking what triggered it.