What is an Emergency Tax Code?
An emergency tax code is a temporary code your employer uses when they don’t have the right tax details for you. This often happens when you:
- Start a new job
- Change jobs
- Have other changes that affect your tax
Emergency tax codes usually start with the letters M, W, or X. For example: 1257M.
- M – You’ve just started a new job.
- W – You’ve changed jobs.
- X – Your circumstances have changed in another way.
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When you’re on an emergency tax code, you’ll often pay more tax than you should because HMRC doesn’t have your correct information. To fix this, give your correct tax code to your employer as soon as possible. Once it’s updated, your tax will be adjusted.
If you stay on an emergency code for the whole tax year, you might have overpaid tax. You can claim it back by completing a self-assessment tax return.
Why you might be put on an emergency tax code:
- New job
- Job change
- Started claiming benefits
- Got a company car
- Moved to a different country
Common Tax Codes in the UK
1257L – The most common tax code for 2023/24. It means you get the standard personal allowance and have one job with no untaxed income, unpaid tax, or taxable benefits.
D1 – Used if you have multiple jobs or pensions and have already used up your tax-free allowance in your main income. All income under this code is taxed at 45%.
1060L – Means you’re entitled to the standard personal allowance. The “1060” shows your tax-free amount, and the “L” confirms you get the standard allowance.
Check out: How Much is VAT in The UK?
Non-Cumulative Tax Codes
HMRC might give you a non-cumulative (emergency) code if they don’t have all your details. This often happens if you start a job, change your circumstances, receive certain state benefits, or claim a marriage allowance.
Non-cumulative codes apply only for that pay period (weekly or monthly) and not the whole year. They often end with W (weekly) or M (monthly).
Tip: Always check your payslip for your tax code. If it’s wrong, get it fixed quickly to avoid overpaying.