Your PAYE tax code decides how much Income Tax is taken from your wages or pension. If it is wrong, you could end up paying too much tax or face an unexpected bill later.
Many people never check their code, although mistakes are more common than you might think.
What is the standard tax code for 2026?
For many employees, the standard PAYE code remains 1257L, which usually means you can earn £12,570 before paying Income Tax.
Your code may change if you:
- Change jobs
- Have more than one income source
- Receive company benefits
- Start drawing a pension
- Claim Marriage Allowance
Common tax codes explained
| Tax Code | Meaning |
| 1257L | Standard personal allowance |
| BR | All income taxed at basic rate |
| D0 | All income taxed at higher rate |
| 0T | No personal allowance applied |
| K code | Tax owed from previous years or benefits |
Signs your tax code could be wrong
You should check your code if:
- Your take-home pay suddenly changes
- You recently changed jobs
- You have two jobs
- You receive benefits like a company car
- Your payslip shows BR, D0 or 0T unexpectedly
Why checking matters
Incorrect tax codes can lead to:
- Overpaying tax
- Underpaying tax and receiving a bill later
- Delays with HMRC refunds
- Payroll issues for directors and business owners
A quick review now could save problems later in the tax year.
Need help understanding your PAYE code?
At North Devon Accounts, we can help you review your PAYE code and check whether the calculations appear correct based on your income and circumstances.
Please note: HMRC does not allow accountants to contact them directly regarding most individual PAYE tax codes, which means any corrections usually need to be handled by the taxpayer personally.
If something does not look right, we can still help you understand what may be causing the issue before you contact HMRC.
(updated May 2026)
