UK Tax Codes · 2026/27
S1257L Tax Code Meaning — Scotland (UK 2026/27)
Who gets the S1257L (Scotland) tax code?
Scottish taxpayers — anyone whose main residence is in Scotland for tax purposes. Residency is determined by where you live for the majority of the tax year. Around 2.5 million Scottish taxpayers have S codes. The S prefix is automatically applied based on your address; you don't need to do anything to receive it.
How S1257L (Scotland) affects your pay
Personal allowance is the same as rUK (£12,570). But the bands above it differ: Starter rate (19%) on £12,571-£15,397; Basic rate (20%) on £15,398-£27,491; Intermediate rate (21%) on £27,492-£43,662; Higher rate (42%) on £43,663-£75,000; Advanced rate (45%) on £75,001-£125,140; Top rate (48%) above £125,140. NI is the same as rUK.
When to check this code
Check S codes whenever you move into or out of Scotland — your code should update automatically through HMRC after you update your address. If you've moved and your code still shows L (English/Welsh), update HMRC immediately to get the correct S prefix.
What to do if it's wrong
If you live in Scotland but have a non-S code, contact HMRC with your address details. The same applies in reverse — if you've moved out of Scotland but still have an S code. Wrong residency coding can lead to small over- or under-payments depending on income level (Scotland's higher-rate income pays more tax than rUK; lower-rate income often pays less).
Example calculation
On £40,000 with S1257L: £12,570 tax-free; £15,398-£27,491 (£12,094) at 20% = £2,419; £27,492-£40,000 (£12,508) at 21% = £2,627; plus £15,398-£27,491 already in basic. Total: £19,000-30,000 actual mix. Scottish income tax £4,800-£5,200 depending on exact band cuts. Plus NI 8% × £27,430 = £2,194. Total deductions: ~£7,000-£7,400.
Recruiter pro tip
Scottish income tax has been progressively diverging from rUK since 2018. For most middle-income earners, Scotland is slightly cheaper than rUK; for higher earners (£43k+), Scotland is more expensive. If you're considering relocation between Scotland and rUK, this matters — particularly at director-level salaries where the difference can be £1,000+ per year.
Related tax codes
1257L
1257L is the standard UK tax code for 2026/27. It means you're entitled to the full £12,570 personal allowance…
SBR — Scotland Basic Rate
SBR is the Scottish equivalent of BR — meaning all income from this source is taxed at the Scottish basic rate…
C1257L — Wales
C1257L is the Welsh equivalent of 1257L — the standard tax code for Welsh taxpayers in 2026/27. The C prefix i…