Tax Code

In recruiter context

1257L is the standard 2024-25 code, meaning £12,570 personal allowance. The number is your allowance divided by 10; the letter is your circumstance. K codes mean negative allowance (you owe tax on benefits worth more than your allowance — common with company cars). BR taxes everything at basic rate, D0 at higher rate — both are usually applied to second jobs. Emergency codes (1257L W1/M1) appear when payroll doesn't have your P45. Tax codes are wrong more often than people think — check yours on your HMRC personal tax account, especially after starting a new job or getting a benefit change.