Take-home pay guide · 2026/27

Understanding your UK payslip and the 1257L tax code

Start with gross pay, then check PAYE Income Tax, employee National Insurance, pension contributions and any other deductions. Net pay is the amount you receive.

What does 1257L mean?

1257L usually reflects the standard £12,570 Personal Allowance. The number indicates the tax-free pay allocated to that employment or pension, and L indicates eligibility for the standard allowance. Scottish or Welsh taxpayers may see an S or C prefix.

What do W1, M1 and X mean?

These markers indicate an emergency tax code. Payroll works out tax using the current pay period rather than looking back at pay and tax so far in the year. This can happen after starting a new job while HMRC is waiting for information.

Why has my take-home pay changed?

Compare gross pay, tax code and deductions with your previous payslip. A bonus, change in hours or new pension contribution can change the amount you receive. If the code looks wrong, check the employment and income details HMRC holds for you. Use the take-home pay calculator for a regular salary estimate in England, Wales or Northern Ireland.

Official guidance · HMRC tax codes