Guide

Tax Codes Explained

Tax codes tell payroll how much tax-free pay to give you and, in some cases, what flat rate to apply.

Quick answer

If your payslip looks wrong, the tax code is one of the first things to check.

What to check

  • 1257L is the standard code for many employees.
  • BR taxes all pay at the basic rate.
  • D0 taxes all pay at the higher rate, and Scottish codes starting with S follow different rules.

What to do next

  • Read the guide for the exact code on your payslip.
  • Use the checker if the amount deducted still looks odd.
  • Compare with HMRC notices before asking payroll to change anything.

Try the tool

Use the checker if you already have a payslip. Use the calculator if you want to model take-home pay or salary-sacrifice changes before payday.