Question 1

What do the numbers in a tax code mean?

Accepted Answer

The numbers show how much you can earn tax-free from that job or pension, divided by ten. 1257L means £12,570, the standard personal allowance for 2026/27. A lower number, such as 1100L, usually means HMRC is collecting tax on a company benefit or other untaxed income through your pay.

Question 2

What do the letters mean?

Accepted Answer

LYou get the standard tax-free personal allowance. MMarriage Allowance: you have received 10% of your partner's allowance. NMarriage Allowance: you have given 10% of your allowance to your partner. TYour code includes other items HMRC needs to review. BRAll income from this job or pension is taxed at 20%, usually a second job. D0All income from this job or pension is taxed at 40%. D1All income from this job or pension is taxed at 45%. 0TNo tax-free allowance on this job, often when a new employer is missing your details. NTNo tax is taken from this income. KUntaxed income or benefits are bigger than your allowance, so tax is added. Employers cannot take more than half your pay. CAt the start: you are taxed using Welsh rates. SAt the start: you are taxed using Scottish rates.

Question 3

What is an emergency tax code?

Accepted Answer

A code ending in W1, M1 or X (or NONCUM on a payslip) is an emergency code. Tax is worked out on each payslip on its own instead of on your pay so far this year. It is common when you start a new job without a P45 and is usually temporary.

Question 4

What if my tax code looks wrong?

Accepted Answer

Check it in your HMRC online account or the HMRC app, where you can update details such as company benefits or a second job. If you have paid too much tax, HMRC usually refunds it automatically through your pay or after the tax year ends. Facts last checked against gov.uk on 11 October 2026.

What does my tax code mean?

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