What is the Tax Code 1257L? 💷📄| Accountants In Essex

If you’ve looked at your payslip or P60 recently, you might have noticed the tax code 1257L. But what does it actually mean? As experienced accountants in Essex, we get this question a lot — so here’s everything you need to know.

What Does Tax Code 1257L Mean?

The 1257L tax code is the most common UK tax code for the 2024/25 tax year. It means you are entitled to the full Personal Allowance of £12,570 — the amount you can earn before paying income tax.

In simple terms:

• 1257 = Your tax-free Personal Allowance (£12,570, minus the zero at the end)

• L = You are eligible for the standard Personal Allowance

Who Gets the 1257L Tax Code?

You’ll usually have tax code 1257L if:

✅ You have one job or main source of income

✅ You get the full Personal Allowance

✅ You have no adjustments for benefits, underpayments, or extra allowances

If you have multiple jobs, pensions, or other income sources, HMRC might use a different tax code.

When Might Your Tax Code Change?

Your tax code may change if you:

📈 Start or leave a job

📦 Have company benefits (like a car or health insurance)

🏠 Receive rental or investment income

💍 Claim Marriage Allowance

📉 Have tax underpayments or adjustments from HMRC

It’s important to check your tax code regularly. The wrong code could mean you’re overpaying tax — or worse, underpaying and facing a bill later.

How to Check if 1257L is Correct

You can check your tax code by:

• Looking at your payslip or P60

• Logging into your HMRC Personal Tax Account

• Asking your employer or pension provider

• Speaking to accountants in Essex for a tax code review

What If 1257L is Wrong?

If you think your tax code is incorrect, contact HMRC as soon as possible to have it updated. You may also be able to claim a tax refund if you’ve been overpaying.

How This Affects Your Self Assessment Tax Return

If you’re employed and also have self-employed or rental income, your 1257L tax code will usually only apply to your main PAYE job. You’ll still need to declare other income on your

Self Assessment tax return before the 31 January deadline.

Need Help With Tax Codes or Tax Returns? | Accountants In Essex

If you’re unsure whether your 1257L tax code is correct, or you want to check if you’re owed a refund, our team of professional accountants in Essex can help.

We work with individuals, self-employed professionals, and companies across the UK to ensure your taxes are accurate, compliant, and optimised to save you money.

📩 Get in touch today for expert tax advice and personalised support with your Self Assessment tax return.

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