Confused by your payslip? Here’s a clear and easy-to-understand list of tax codes and what they mean, explained in plain English. Brought to you by Content Corner — your source for everyday clarity.
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Understanding your payslip shouldn’t feel like reading a secret code. Yet, when most people see tax codes like 1257L or BR, they’re left scratching their heads. If you’re wondering what they actually mean, you’re in the right place.
In this blog from Content Corner, we give you a complete list of tax codes and what they mean, helping you stay informed & avoid any surprise deductions.
What Are Tax Codes:
Before satrting the list of tax codes and what they mean, let’s explain the concept. A tax code is a short string of numbers and letters used by HMRC (HM Revenue & Customs) to tell your employer how much income tax to deduct from your salary. It reflects:
- Your personal allowance
- Your employment situation
- Any special tax circumstances
List of Tax Codes and What They Mean
Here’s the complete list of tax codes and what they mean, simplified:
1257L
The standard tax code for most people in the UK. It means you’re entitled to the full £12,570 tax-free personal allowance.
Used when: You have one job and no special circumstances.
BR (Basic Rate)
Taxed at 20% on all income. No personal allowance is applied.
Used when: You have a second job or pension that’s taxed separately.
D0
Taxed at the higher rate (40%) on all income.
Used when: You have additional income sources and no personal allowance is applied.
D1
Taxed at the additional rate (45%) on all income.
Used when: Your income exceeds the highest threshold, usually through a second job or pension.
K Codes (e.g., K1257)
Means you owe tax from previous years or you receive taxable benefits.
Used when: You have untaxed income (like company car benefit).
M and N Suffixes (e.g., 1257M / 1257N)
These apply to marriage allowance transfers.
- M means you receive some of your partner’s personal allowance.
- N means you transferred part of your allowance to your partner.
Emergency Codes (e.g., 1257 W1 / M1 / X)
Temporary codes when your employer doesn’t have full details.
Used when: You just changed jobs, and HMRC is waiting for details.
NT
No tax is deducted.
Used when: You’re not liable to pay UK income tax — for example, if you’re non-resident or under a specific agreement.
Why It’s Important to Understand Your Tax Code
Knowing the list of tax codes and what they mean can help you:
- Avoid being over or under-taxed
- Spot mistakes on your payslip
- Plan your financial year better
If you think your tax code is wrong, you can contact HMRC directly or ask your employer for clarification.
Real-Life Scenario
Sana checked her payslip last month and noticed a BR tax code, despite having only one job. After reading our previous article “What Time Does It Get Dark?”, she visited Content Corner again — this time to understand her tax situation. It turned out HMRC was missing her starter form. A quick call fixed it.
Moral? Understanding the list of tax codes and what they mean saves you time, stress, and potentially hundreds of pounds.
Where to Check Your Tax Code
Want to confirm your current tax code?
- Your payslip (usually top section)
- HMRC app or online account
- Call HMRC at 0300 200 3300
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Final Words: Mastering the List of Tax Codes and What They Mean
Don’t let numbers and letters confuse you. Now that you’ve read our full list of tax codes and what they mean, you’re better equipped to take control of your payslip and your finances.
