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UK Tax Code Guide — 2026/27

What is Tax Code 1257L?

The standard UK tax code for 2026/27. Tax code 1257L gives you a £12,570 tax-free Personal Allowance.

Based on published HMRC 2026/27 tax thresholds

Updated for 2026/27 HMRC source Plain English

Last updated: 26 July 2026

Tax Code 1257L Explained

Tax code 1257L is the standard tax code for most UK employees in the 2026/27 tax year. It tells your employer to give you a tax-free Personal Allowance of £12,570 before deducting Income Tax from your pay.

The number 1257 is derived from the Personal Allowance (12,570) divided by 10. The letter L means you are entitled to the standard Personal Allowance and have no adjustments such as company benefits or untaxed income that would alter it.

If your tax code is 1257L, HMRC calculates your tax cumulatively across the year — each pay period takes into account all previous periods — so your deductions automatically balance out even if your pay varies month to month. This is called a cumulative basis and is the most common setup for employees with a single job.

You will find your tax code on your payslip, P60, P45 or your Personal Tax Account at GOV.UK.

How 1257L Compares to Other Common Tax Codes

Feature1257L (standard)BR (second job)K code
Personal Allowance£12,570 tax-freeNone (£0)Negative (adds to taxable income)
Tax basisCumulativeNon-cumulativeCumulative
Rate applied20% / 40% / 45% by band20% flat on all incomeStandard bands, but higher taxable amount
Monthly tax on £2,500 gross~£155£500Higher than 1257L
Typical scenarioOne job, standard employeeSecond job or new starterBenefits-in-kind exceed allowance
Who assigns itHMRC (default for most)HMRC (second income)HMRC (when deductions exceed allowance)

See also: BR tax code explained →  ·  K tax code explained →

⚠️ When Does Tax Code 1257L Apply?

  • You have one job and no untaxed income or taxable benefits
  • HMRC has confirmed your Personal Allowance is the standard £12,570 for 2026/27
  • You have no outstanding tax debt being collected through your code
  • You are not in receipt of the Marriage Allowance transfer (which would give you code 1283L instead)
Common Questions

Tax Code 1257L — FAQs

Tax code 1257L means you receive the standard £12,570 Personal Allowance for 2026/27 — the amount you can earn tax-free each year. The number 1257 represents the allowance divided by 10, and L means no adjustments apply.

1257L is correct for most employees with a single job and no unusual tax circumstances. If you have company benefits, untaxed income, or owe tax from a previous year, your code may differ.

HMRC will send you a tax code notice (P2) by post or through your Personal Tax Account. Your employer will update your payroll. If you think the change is wrong, contact HMRC directly.

You can check your tax code on your payslip, P60, P45, or by logging into your HMRC Personal Tax Account at gov.uk/personal-tax-account.

Yes. Scottish taxpayers use the same tax code format (S1257L for most) but are subject to Scotland’s six-band income tax system. The Personal Allowance of £12,570 still applies.

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