Your tax code is a code which enables your employer or your pension provider to calculate how much income tax to deduct from your pay or pension contribution.

If you’re unsure of what your tax code is you can check it online here

Each year you will receive a letter from HMRC containing your tax code.

There are standard codes for each tax year. Depending on your circumstances your tax code may contain different numbers or letters. 

Emergency tax codes

From 6th April 2021 emergency tax codes will be as follows:



• 1257L W1
• 1257L M1
• 1257L X

Why would I have an emergency tax code?

Having an emergency tax code means you will pay over the amount of your personal allowance. You may have an emergency tax code if you; start a new job, become employed following being self-employed, if you are in receipt of state pension or receiving company benefits.

An emergency tax code is only a temporary measure.

Regular tax codes

For most people who only have one job or pension their tax code would usually be 1257L.

What do the letters mean in my tax code?

• L- Standard tax-free personal allowance
• M - Marriage allowance - you have received 10% of your partner’s personal allowance
• N - Marriage allowance - you have transferred 10% of your personal allowance to your partner
• T - Your tax code includes other calculations to work out your Personal Allowance
• 0T - Your personal allowance has already been used up or you’ve started a new job and your new employer doesn’t have the details they need in order to give you tax code.
• BR - All your income is taxed at the Basic rate. This usually means that you have more than one job or pension
• D0 - All your income and pension is taxed at the higher rate, again this is usually when you have more than one job or pension
• D1 - All your income is taxed at the additional rate, usually if you have more than one job or pension
• NT - You don’t pay tax
• S - Scottish rates - there are various tax codes starting with an S which relate to Scottish rates
• C - Welsh rates - there are various tax codes starting with a C which relate to Welsh rates
• K - You have income that is not being taxed and is worth more than your tax-free allowance.

If you need any assistance with tax codes please get in touch.