What Does the 1257L Tax Code Mean?
Standard UK Personal Allowance
description Core Meaning & Overview
The standard tax code for 2026/27 used by millions of UK employees on a single job with no taxable company perks or past-year tax arrears.
account_balance Legal & Payroll Mechanics (2026/27)
Grants the full statutory tax-free Personal Allowance threshold of £12,570 under Section 35 of the Income Tax Act 2007. The first £12,570 is tax-free. Earnings from £12,571 to £50,270 are taxed at the 20% Basic Rate (plus 8% Class 1 employee NI). Earnings between £50,271 and £125,140 incur the 40% Higher Rate (plus 2% NI).
warning Is Your 1257L Tax Code Correct?
If your payslip shows 1257L but you receive a company car, private healthcare, or hold a second job, HMRC may not be deducting enough tax. Check your Personal Tax Account to avoid an unexpected year-end P800 bill.
help Frequently Asked Questions About 1257L
What does 1257L mean on my payslip?
The number 1257 multiplied by 10 equals £12,570 — your annual tax-free Personal Allowance for 2026/27. The letter L means you are entitled to the standard personal allowance.
Do I pay National Insurance on 1257L?
Yes. National Insurance uses its own threshold (£12,570/yr or £1,048/mo). You pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.