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Glossary · Tax

Tax code

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Definition: The code on your payslip that tells your employer how much tax-free allowance to apply each pay period. The standard 2026/27 code is 1257L.

Letters indicate adjustments: K (negative allowance, e.g. for benefits in kind), BR (all basic-rate), D0 (all higher-rate), NT (no tax), M/N (Marriage Allowance), S (Scottish), C (Welsh). Always check your code on your latest payslip or Personal Tax Account.

Primary source: gov.uk/tax-codes

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