Tax Code Tools & Resources
Common tax codes 2026/27
Understanding the most frequently used tax codes
| Tax Code | Description | Tax-Free Allowance | Common Usage |
|---|---|---|---|
| 1257L | Standard personal allowance for 2026/27 | £12,570 | Most common code for basic rate taxpayers |
| 1257M | Marriage allowance received | £12,570 + transferred allowance | Spouse has transferred 10% of their allowance to you |
| 1257N | Marriage allowance transferred | £11,314 | You have transferred 10% of allowance to spouse |
| BR | Basic rate tax on all income | No allowance | Often used for second jobs or pensions |
| D0 | Higher rate tax on all income | No allowance | All income taxed at 40% |
| D1 | Additional rate tax on all income | No allowance | All income taxed at 45% |
Understanding Your Tax Code
Tax codes determine how much Income Tax is deducted from your NHS salary:
How Tax Codes Work:
•Number represents your tax-free allowance
•Letter indicates your tax situation
•Standard allowance 2026/27: £12,570 (code 1257L)
•Tax deducted monthly via PAYE system
Code Structure:
•First digits: Tax-free allowance ÷ 10
•Final letter: Special circumstances
•Example: 1257L = £12,570 allowance + standard rate
Common NHS Scenarios:
•Single job: Usually 1257L
•Multiple NHS positions: BR code for second job
•Pension plus salary: Different codes for each
•Benefits in kind: Reduced allowance codes
Where to Find Your Code:
•Payslip each month
•P60 annual certificate
•Tax code notice from HMRC
•Personal tax account online
Source: https://www.gov.uk/tax-codes
Emergency Tax Codes and Corrections
Emergency tax codes are temporary measures when HMRC lacks current information:
When Emergency Codes Apply:
•Starting new NHS job without P45
•Returning to work after break
•Benefits or salary changes
•HMRC hasn't updated records
Emergency Code Types:
•1257L W1/M1: Emergency code on a non-cumulative week 1/month 1 basis
•BR (including BR W1/M1 variants): Basic rate on all income, no personal allowance
•Higher rates possible for senior positions
Getting Emergency Codes Fixed:
•Provide P45 from previous employer
•Contact HMRC with employment details
•Submit starter checklist information
•Update personal tax account
Claiming Refunds:
•Emergency tax often results in overpayment
•HMRC usually refunds automatically
•Can claim via P50 if leaving employment
•Contact HMRC for manual review if needed
Timeline for Corrections:
•Usually resolved within 6 weeks
•May take longer during busy periods
•Refunds processed through payroll
•Direct refund if employment ended
NHS-Specific Tax Code Situations
Special considerations for NHS staff tax codes and deductions:
Multiple NHS Employers:
•Each job needs separate tax code
•Main job: Usually personal allowance code
•Additional jobs: Usually BR (basic rate)
•Locum work: Often BR or D0 codes
Pension and Salary Combined:
•NHS pension: Separate tax code
•Current salary: Different code
•Combined may affect tax bands
•Check total deductions carefully
Benefits and Allowances:
•Car schemes: May reduce tax code
•Accommodation: Affects allowance
•Study leave payments: Special treatment
•Overtime: Usually same code as basic
Salary Sacrifice Impact:
•Reduces gross pay for tax
•May improve tax code position
•Check payslip shows correct amounts
•HMRC may need notification
Bank and Agency Work:
•Often emergency codes initially
•Provide employment history
•May need multiple P60s
•Complex tax reconciliation needed
Checking and Correcting Tax Codes
How to verify your tax code is correct and take action if needed:
Regular Checks Required:
•Monthly payslip review
•Annual P60 reconciliation
•Tax code notice verification
•Compare with previous year
Common Error Signs:
•Tax deduction seems too high/low
•Emergency code lasting months
•Benefits not reflected in code
•Multiple jobs incorrectly coded
Self-Service Options:
•HMRC Personal Tax Account online
•Check and update employment details
•View tax code history
•Report changes in circumstances
When to Contact HMRC:
•Code appears incorrect for circumstances
•Emergency code not resolved
•Benefits not properly accounted
•Multiple employment issues
Information HMRC Needs:
•PAYE reference from payslip
•Details of all employments
•Benefit information
•Previous year's circumstances
Resolution Timeframes:
•Simple changes: 2-3 weeks
•Complex cases: 6-8 weeks
•Refunds: Usually next payroll
•Adjustments: Following tax year if needed
Annual Tax Reconciliation Process
Understanding the annual tax reconciliation and P800 calculations:
End of Tax Year Process:
•HMRC reconciles all PAYE deductions
•Compares actual vs theoretical liability
•Issues P800 if adjustment needed
•May result in refund or additional tax
P800 Tax Calculation:
•Shows total income from all sources
•Calculates correct tax liability
•Compares with PAYE deductions made
•Explains any difference
Common Reconciliation Issues:
•Multiple employments overlap
•Benefits not coded correctly
•Emergency tax overpayments
•Pension contributions not recognised
Receiving Refunds:
•Often automatic for smaller amounts; HMRC issues a P800 calculation
•Paid by cheque or bank transfer
•May adjust following year's code
•Can take 8-12 weeks to receive
Additional Tax Due:
•Usually collected via next year's code
•Larger amounts may need direct payment
•Payment plans available if needed
•Appeal possible if calculation incorrect
NHS-Specific Considerations:
•Multiple pension schemes
•Locum and bank shifts
•Study leave and special payments
•Transition between training grades
NHS Tax Code Troubleshooting
Multiple employments
Bank work, locum roles, and concurrent NHS contracts can split allowances badly. Check which employer has the main code and which has BR, D0, or D1.
Emergency code persistence
A short emergency-code period is common after a job change. If it lasts more than a couple of payslips, use your Personal Tax Account or call HMRC.
Benefits and expenses
P11D benefits, professional subscriptions, uniform claims, and mileage can all change the code. Keep evidence for any reliefs you claim.
Large corrections
Underpayments can be coded out in a later year. Check whether Self Assessment or a direct payment would be clearer for larger balances.
Related guides
These related guides cover the next questions that usually come up after this topic.
Check Your Tax Code Regularly
NHS staff with multiple jobs, pension income, or benefits should check their tax codes monthly. Emergency codes lasting more than two months usually indicate an issue that needs HMRC attention. Use your Personal Tax Account for quick checks and updates.