Contact Us

Your tax code tells you and your employer/ pension provider how much tax-free pay you’re entitled to.

Assuming you have only one source of income, it’s from employment and there’s nothing unusual about your circumstances or history, you’ll probably have a tax code of 1257L from April 2021. A Scottish taxpayer will have their tax code prefixed with an 'S' or ‘C’ if they are a Welsh taxpayer, so their tax code could be S1257L or C1257L for example. 

The L indicates that you are entitled to the full personal allowance, but there are a variety of different letters you might see.

The personal allowance from 6th April 2021 to 5th April 2022 will be £12,570 but the last digit is dropped when constructing the tax code.

If you have more than one job, you may find that your personal allowance is split across the two jobs or you may have 1257L on one job and BR on the other. HM Revenue and Customs will apply a BR code, when it believes you are a basic rate taxpayer and that your personal allowance is being used in-full against another source of income you have. Any income with a BR code will be taxed at 20%.

Your tax code is important because it will affect how much tax you pay. When HMRC issues you with a tax code, you should make sure you check the calculations. If you think your tax code is wrong, you can contact HMRC to get it changed.

If you have any queries about your tax code or need us to check it, please call 0203 971 5550.

Date published 6 Apr 2020 | Last updated 26 May 2021

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

Choose the right accounting firm for you

Running your own business can be challenging so why not let TaxAssist Accountants manage your tax, accounting, bookkeeping and payroll needs? If you are not receiving the service you deserve from your accountant, then perhaps it’s time to make the switch?

Local business focus icon

Local business focus

We specialise in supporting independent businesses and work with 80,684 clients. Each TaxAssist Accountant runs their own business, and are passionate about supporting you.

Come and meet us icon

Come and meet us

We enjoy talking to business owners and self-employed professionals who are looking to get the most out of their accountant. You can visit us at any of our 409 locations, meet with us online through video call software, or talk to us by telephone.

Switching is simple icon

Switching is simple

Changing accountants is easier than you might think. There are no tax implications and you can switch at any time in the year and our team will guide you through the process for a smooth transition.

See how TaxAssist Accountants can help you with a free, no obligation consultation

0203 971 5550

Or contact us