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1257l correct tax code?
The tax code “1257L” on your payslip or P45 form specifies an individual’s regular tax-free personal allowance in that tax year.
If you payslip doesn’t has 1257l tax code what does it mean?
If your payslip doesn’t have the 1257L tax code, it means that your tax code may be different on your payslip. There are various reasons why this could be the case, such as changes in your circumstances, adjustments made by HM Revenue and Customs (HMRC), or an error in the tax code allocation.
It’s advisable to contact your employer or HMRC to clarify your tax code if it appears incorrect or if you have any concerns about it. They will be able to provide you with the necessary information and make any corrections if needed. An example of how the 1257L tax code might appear on a payslip is: Tax Code: 1257L
How to change your tax code to 1257l in UK?
To change or correct your tax code to 1257L in the UK, follow these steps. First, check your current tax code on your payslip or P45. If it doesn’t already show 1257L, contact HM Revenue and Customs (HMRC) through their helpline or website. Explain that you believe your tax code should be 1257L and provide accurate information about your income and employment. If requested, submit any required documents like P45 (from your previous employment) or P60 forms.
HMRC will review your case and make any necessary adjustments. They may issue a new tax code, including 1257L if applicable. Remember to act proactively if you think there’s an error in your tax code and reach out to HMRC promptly for resolution.
Also read: OT Tax Code
Example calculation of 1257l in UK?
For example of 1257L tax code lets assume the sample income details of an employee in a company in UK
Yearly Income: £30,000 per year
Tax year: 2021/2022
Step 1: Determine the tax-free personal allowance
The tax code 1257L indicates a tax-free personal allowance of £12,570 for the tax year 2021/2022.
Step 2: Calculate taxable income
To calculate taxable income, subtract the tax-free personal allowance from your annual income:
£30,000 – £12,570 = £17,430
Step 3: Apply tax rates and thresholds
For the tax year 2021/2022, the basic tax rate is 20% on income between £12,571 and £50,270.
Tax owed to HMRC at the basic rate: 20% of £17,430 = £3,486
Therefore, based on the example, an individual employee with the 1257L tax code and an annual income of £30,000 would owe £3,486 in income tax for the tax year 2021/2022.
Please note that this example is a simplified calculation and does not account for other factors such as National Insurance contributions or any additional allowances or deductions that may apply to an individual’s specific circumstances. For professional advice please consult an accountant near your area.
Also read: BR Tax Code
DISCLAIMER: We have written the UK accounting and tax related details for your information only. For professional advice or for any accounting task you require, you may need to speak to a professional accountant near you who can assist you. Please read our disclaimer for more details.