UK Tax Codes Explained 2026/27
What does your UK tax code actually mean? 14 explainers covering every common UK code: standard 1257L, basic-rate BR, higher-rate D0, additional D1, no-allowance 0T, K codes (owed tax), Marriage Allowance M/N, Scotland's S codes, Wales's C codes. Plain English with real examples.
1257L
1257L is the standard UK tax code for 2026/27. It means you're entitled to the full £12,570 personal allowance — the amount you can earn before paying…
BR — Basic Rate
BR stands for 'Basic Rate' — meaning all your income from this job is taxed at 20%, with no personal allowance applied. BR is most commonly used on se…
D0 — Higher Rate
D0 means all income from this source is taxed at the higher rate (40%) with no personal allowance applied. D0 is typically used on a second job or pen…
D1 — Additional Rate
D1 means all income from this source is taxed at the additional rate (45%) with no personal allowance applied. D1 is rare — typically used on a second…
0T — No Personal Allowance
0T means you have no personal allowance applied to this income — all earnings are taxed at the appropriate rate band (20%, 40%, or 45%) from the first…
NT — No Tax
NT stands for 'No Tax' — meaning no income tax is deducted from this income source. NT is rare and is typically applied when you're a non-UK resident,…
K — Owed Tax Adjustment
K codes (e.g. K123, K500) mean you have less than zero personal allowance — typically because of underpaid tax from previous years, taxable benefits-i…
M — Marriage Allowance
M at the end of your tax code (e.g. 1383M for 2026/27) means you receive 10% of your spouse or civil partner's personal allowance — adding £1,260 to y…
N — Marriage Allowance Transfer
N at the end of your tax code (e.g. 1131N for 2026/27) means you've given 10% of your personal allowance to your spouse or civil partner. The number b…
T — Items Under Review
T at the end of your tax code (e.g. 1257T) means HMRC has used a non-standard calculation for your code that requires review — typically because of co…
W1 / M1 — Emergency / Week 1 / Month 1
W1 (Week 1) and M1 (Month 1) are emergency tax codes used when HMRC doesn't yet have enough information to calculate your full tax position. They tax …
S1257L — Scotland
S1257L is the Scottish equivalent of 1257L — the standard tax code for Scottish taxpayers in 2026/27. The S prefix indicates you're on Scottish income…
SBR — Scotland Basic Rate
SBR is the Scottish equivalent of BR — meaning all income from this source is taxed at the Scottish basic rate (20%) with no personal allowance. The S…
C1257L — Wales
C1257L is the Welsh equivalent of 1257L — the standard tax code for Welsh taxpayers in 2026/27. The C prefix indicates you're on Welsh income tax rate…
How to read a UK tax code
A typical UK tax code has three parts: a number (representing your tax-free allowance ÷ 10, e.g. 1257 = £12,570 allowance), a letter (specifying any modification — L for standard, M for Marriage Allowance recipient, etc.), and an optional prefix (S for Scotland, C for Wales). Some codes don't follow this format — BR, D0, NT, 0T are full codes by themselves and apply specific tax rates.
Pair this guide with our UK Take-Home Pay Calculator to see exactly what your code means in net pay terms. Wrong codes can cost you hundreds of pounds a year — most are correctable in one phone call to HMRC (0300 200 3300).
For payroll software / HR system import: download the full tax-codes dataset (JSON + CSV, CC BY 4.0).