HMRC Updates
Income Tax: Personal allowance frozen at £12,570 CGT: Annual exempt amount is £3,000 NICs: Main Class 1 Employee NI rate reduced VAT: MTD system requirements fully enforced SDLT: First-time buyer relief threshold £425,000 Corporation Tax: Main rate 25% for profits over £250k IHT: Nil-rate band frozen at £325,000 Pension: Annual allowance set at £60,000
Estimated calculation • • uktaxhero.com
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Important: Illustrative estimates based on HMRC published rates. Actual liabilities vary. Find a Tax Expert →
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How This Calculator Works

📜 Decode Any Code

Instantly explains what your tax code means: standard, K codes, emergency codes, Scottish S prefix, Welsh C prefix and more.

💰 Tax Estimate

Shows the estimated annual Income Tax based on your code and income so you can verify you're paying the right amount.

🚨 Emergency Tax Alert

Flags codes like 0T, W1 and K codes that may mean you're overpaying or have an issue HMRC needs to resolve.

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Frequently Asked Questions

What does 1257L mean?

1257L is the most common tax code. 1257 means a personal allowance of £12,570 (1,257 × 10). L means you’re entitled to the standard tax-free personal allowance.

What should I do if I have a W1 or M1 code?

W1/M1 (or X) codes mean tax is calculated on a non-cumulative basis. This often results in paying too much or too little tax. Contact HMRC to correct it, especially after a job change or if you haven’t worked for part of the year.