Tax code 1257l meaning?
It is the most commonly used tax code for the tax years 2021 to 2022 is 1257L. It’s used for most people with one job and no untaxed income, unpaid tax, or taxable benefits (for example a company car).
1257L is an emergency tax code only if followed by ‘W1’, ‘M1’ or ‘X’. Emergency codes can be used if a new employee doesn’t have a P45
Read More on https://www.gov.uk/employee-tax-codes
What is my tax code?
Use the check your Income Tax online service within your Personal Tax Account to find your tax code for the current year. You can also view your tax code for:
- a previous tax year
- the next tax year
You’ll be asked to sign in with Government Gateway or create an account if you do not already have one.
Once signed in, you can also see:
- if your tax code has changed
- how much tax you’re likely to pay
You can also find your tax code on your payslip or tax code letter from HMRC.
TAX Codes in Short:
The L tax code means?
Most of the taxpayers use this code in the UK. This means that you are under 65 and eligible for the standard tax-free Personal Allowance
The K tax code means?
It is used for the untaxed income It is used when your level of untaxed additional income exceeds your Personal Allowance.
The S tax code means?
This means if your income or pension is taxed using the rates in Scotland.
The T or 0T tax code mean?
This tax code is used for high earners in the UK generally over £100,000+ income.
The M & N tax code means?
These codes are used for the marriage allowance. The M code means that you have received 10% of your partner’s allowance, while the N code means you have transferred 10% of your allowance to your partner.
The BR, D0 & D1 tax code means?
This code is generally used for second jobs and pensions All other income will all be taxed without any allowance. If you pay at the basic rate, additional income sources will receive a BR code, higher ratepayers will get a D0 code and those liable for the additional rate will get the D1 code.
The NT tax code means?
As it sounds no tax will be taken from you.
The W1 & M1 tax code means?
These emergency tax codes are issued if HMRC does not have enough information about you.
W1 – For Weekly pay
M1 – For Monthly pay
This means that you are being taxed as if it is the first week or month of the financial year
The first part of the emergency tax code for 2021-22 is 1257 – the same as the basic Personal Allowance code.
How to Change Your Tax Code?
If you think your tax code is wrong and you need to change it then there is only one way to contact HMRC as soon as possible so it can be corrected.
You can get hold of all of the contact details for the HMRC.
If you still have some queries please add them to the comment section.