What is the 2025-26 PAYE tax code? What do the different types of tax code prefixes and suffixes mean?
This is a freeview 'At a glance' guide to 2025-26 PAYE tax codes.
What is the standard PAYE tax code?
The basic PAYE tax code for employees in 2025-26 is set at 1257L.
- This gives an employee a personal allowance of £12,570 for the year (no change since last year).
- This is the most common tax code for individuals with one job or a pension. The L suffix means that the individual is entitled to the standard personal allowance.
- 1257L is also called the 'emergency code' when operated on a non-cumulative basis (see below).
Employees who earn between £100,000 and £125,140 have their personal allowance tapered away. It is reduced by £1 for every £2 in excess of £100,000.
- Employees who earn more than £125,140 receive no personal allowance and should be on a 0T tax code (see below).
Individuals who have claimed the Marriage allowance, by virtue of a low-earning spouse or civil partner, have a PAYE code with a suffix of M.
- Those who surrender the allowance have a suffix of N.
Employees who are Scottish Taxpayers have the prefix S (e.g. S1257L).
- There are considerably more tax rates and bands in Scotland than in the rest of the UK.
- See Scottish Income Tax Rates for the full list of Scottish Income Tax rates and bands.
Employees who are Welsh Taxpayers have the prefix C (e.g. C1257L).
- Welsh Income Tax rates and thresholds are the same as those for England and Northern Ireland.
- See Welsh Income Tax Rates.
What tax code do I use for 2025-26?
If the employee is a new starter or casual worker complete the Starter checklist and refer to PAYE Codes: Starters/leavers & 0T code.
Otherwise use 1257L for employees unless:
- Notification of a different code is advised by HMRC on form P9(T).
- The employee's code was not the basic code last year, in which case expect the code to be the same as last year unless otherwise notified by HMRC. Do not carry forward any W1/M1 indicator from a 2024-25 code.
It is advisable to double-check with HMRC, and if in doubt check online or by phone.
What is the 'emergency' tax code for 2025-26?
- 1257L is the default emergency tax code when suffixed with W1 (weekly pay), M1 (monthly pay) or X (weekly, monthly or non-standard pay period).
- These codes are non-cumulative meaning that tax is calculated for that pay period only, disregarding previous earnings and allowances.
What is the code ending in 0T?
Tax code 0T (including S0T or C0T) means that the employee is not given any personal allowance when calculating their Income Tax via PAYE.
This is most likely because the employer has probably not been given the employee's starting information to give them a tax code, they are a casual worker, or they earn over £125,140 (where the personal allowance is no longer available).
- Code 0T does not apply tax at a flat rate (like codes BR, D0 and D1, below).
- Code 0T takes account of the basic, higher and additional rate bands meaning that some tax may be paid at 40% and 45%, as well as 20%, depending on the level of earnings.
What are some of the other letter prefixes, suffixes and codes I may see?
- BR (including SBR and CBR): All income from this income stream is taxed at the basic rate.
- D0 (including SD0 and CD0): All income from this income stream is taxed at the higher rate (or intermediate rate in Scotland).
- D1 (including SD1 and CD1): All income from this income stream is taxed at the additional rate (or higher rate in Scotland).
- SD2: All income from this income stream is taxed at the advanced rate in Scotland.
- SD3: All income from this income stream is taxed at the top rate in Scotland.
- K: There is more income to be taxed (often Benefits In Kind or state benefits) and this is more than the personal allowance (this is effectively a negative tax code).
- NT: There is no tax to pay on this income stream.
- T: Other calculations have been included to work out the personal allowance available.
Why should I check my tax code?
It is said that less than 80% of employees bother to check their PAYE code.
- If your code is lower or higher than expected you need to find out why.
- It may have been adjusted by HMRC to code out underpayments of tax in previous tax years, see PAYE collection of tax debts.
- If you receive any benefits from employment or do more than one job, or receive investment income and are a higher-rate taxpayer you should find that your PAYE code is restricted in some way.
- Home-working: have you claimed your Working from home allowance?
- Have HMRC included tax relief for any other Employment expenses claimed?
- If your taxable benefits are not adjusted for on your PAYE code it may be that there is an error or your employer may be Payrolling your benefits. Check with your employer first.
- If you fail to check your code you may pay the wrong amount of tax. Do not rely on HMRC to provide you with the correct code.
- HMRC have launched an Interactive tool to help taxpayers check and understand their tax codes. It also provides guidance as to how to get your code changed if you think it is incorrect.
See How to check your PAYE code.
Where can I find my tax code?
You can find your tax code:
- By checking your tax code online via HMRC.
- On the HMRC app.
- On your payslip.
- On a ‘Tax Code Notice’ letter from HMRC if you get one.
Pensioners
Pensioners no longer qualify for any additional age allowance.
Individuals who are married or in a civil partnership, where one person is over 90 in 2025-26 (born before 6 April 1935), may receive the Married Couples Allowance (MCA). This may be adjusted in their tax code.
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