Tax Code

The code telling an employer or pension provider how much tax-free income to give you before deducting tax. 1257L is the standard code, reflecting the £12,570 personal allowance. Codes go wrong often, particularly after a change of job, a second income or a pension starting, and an incorrect code means paying too much or too little all year.

Figures are UK rates and change each April. Source: GOV.UK — Tax codes