Understanding what tax code 1257L means

Last updated April 2024

A tax code is a string of numbers and letters that tells your employer how your earnings should be taxed. You get one for each Pay As You Earn (PAYE) job you have, and it’s important to keep track of them. Any time your tax code changes, HMRC will alter the Income Tax you’re paying each year.

If you’ve got a 1257L tax code for your job, you’re in good company. This is the basic code that most people paying tax through the PAYE system will have. It breaks down like this:

The number 1257 means that you have the normal tax-free Personal Allowance of £12,570 attached to this job.
The letter L just means there are no special circumstances affecting the tax you pay for this job.

Example of PAYE on tax code 1257L

Suppose you earn £30,000 a year from your job with a tax code of 1257L. Here’s what your take-home pay looks like:

The first £12,570 chunk of your earnings is free of Income Tax.
The remaining £17,430 will be taxed at the basic rate of 20% through PAYE. Your employer will take some money out of your pay each month and send it to HMRC before giving you the rest.

How to change my 1257L tax code

Most of the time, HMRC will alter your tax code for you as your circumstances change. However, there are times when you might end up on the wrong tax code – and when that happens you need to get it fixed fast. It’s your responsibility to get the problem sorted, and things can get very tricky if you don’t.

If you think your tax code’s wrong, you need to contact HMRC to make sure they have the information they need to put it right. If you’re claiming a tax rebate with RIFT, of course, we’ll check your tax code for you as part of the service. If you’re ever given the wrong code, we’ll get it corrected for you.

Could I be due a tax rebate?

Being on the wrong tax code can easily leave you paying the wrong amount of Income Tax on your earnings. For example, this can happen when:

You change jobs and your new employer doesn’t have the information they need to tax your pay properly.
You have a spouse who isn’t using all of their tax-free Personal Allowance, and you’re not claiming Marriage Allowance to transfer a chunk of their allowance to you.
You’ve claimed a tax refund and HMRC has altered your tax code to factor in your expenses. If those expenses change from year to year, your tax code can end up wrong.

Any of these situations can mean you’re paying too much Income Tax and might be able to claim a tax refund. Get in touch with RIFT to find out more about tax rebates, and to see how the UK’s leading experts can get back everything you’re owed.

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Understanding what tax code 1257L means

Example of PAYE on tax code 1257L

How to change my 1257L tax code

Could I be due a tax rebate?

Want more?Want to save some money?

More on tax codes

Am I on the wrong tax code?

HMRC tax codes explained

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Understanding what tax code 1257L means​

Example of PAYE on tax code 1257L

How to change my 1257L tax code

Could I be due a tax rebate?

Want more?Want to save some money?

More on tax codes

Am I on the wrong tax code?

HMRC tax codes explained

What are tax code allowances?

Understanding what tax code 1257L means