What Is a Tax Code and How Do You Check Yours?

Your tax code controls how much of your income is tax-free. The standard code for 2026/27 is 1257L, reflecting the £12,570 personal allowance. A wrong code means you over- or under-pay tax, so it's worth knowing how to check it.

Last reviewed: 30 May 2026 · 2 min read

Key Facts

The standard 2026/27 tax code is 1257L
The number roughly equals your tax-free allowance divided by ten
Emergency codes can cause new starters to overpay tax

How to read your tax code

Most codes are a number followed by a letter. The number is your tax-free allowance with the last digit removed — so 1257L means £12,570 tax-free. The letter reflects your situation: L is the standard personal allowance, BR means all income is taxed at basic rate (common for second jobs), and codes with W1, M1 or X are emergency codes.

You'll find your code on your payslip, your P45, or through your personal tax account on the gov.uk website.

Spotting and fixing problems

Emergency codes often hit new starters who haven't given a P45, leading to too much tax being taken. If your code looks wrong — for instance you're being taxed from your first pound — contact HMRC, who can issue a corrected code to your employer.

Overpaid tax is refunded, often automatically after the tax year, but flagging it early gets your money back sooner. Underpayments, by contrast, mean a bill later, so it's always worth checking the code is right.

FAQ

Frequently Asked Questions

What does the BR tax code mean? +

BR stands for Basic Rate and means all your income from that job is taxed at 20%, with no tax-free allowance applied. It's normal for a second job, where your allowance is already used by your main job. If it's on your only job, that's likely an error worth querying with HMRC.

How do I get a tax refund if my code was wrong? +

If you've overpaid, HMRC often refunds it automatically after the tax year through a P800 calculation. You can also check and claim through your personal tax account on gov.uk. Having the correct code applied stops the overpayment continuing month after month.

Why did my tax code change? +

Codes change when your circumstances do — a new job, a second income, taxable benefits like a company car, or HMRC adjusting for previous under- or over-payments. HMRC usually writes to explain. If a change doesn't make sense to you, it's worth checking the details, as mistakes happen.

Topics covered

tax tax code payslip

This article is for informational purposes only and does not constitute financial advice. Always do your own research or speak to a qualified financial adviser before making financial decisions.