Business Services Organisation
The standard tax code from 6 April 2025 is:
1257L
This means the standard employee personal allowance for the 2025/2026 tax year is:
- £242 per week
- £1,048 per month
- £12,570 per year
| PAYE Tax Rate | Rate of Tax | Annual Earnings the rate applies to (above PAYE threshold) |
| Basic Tax | 20% | Up to £37,700 |
| Higher Tax | 40% | £37,701 to £125,140 |
| Additional | 45% | Above £125,140 |
HMRC decides your tax code based on several factors, your personal allowance, income from other jobs, an estimate of other income HMRC expects you have that isn’t taxed, taxable benefits you receive and whether you are due a tax refund or owe HMRC money.
Your tax code consists of letters and numbers which tells your employer how much money you can earn without paying tax.
To better understand your own tax code – what the numbers/letters mean
and/or
Sign up to the HMRC app – to check if the information held by HMRC is current/correct
click on the link below: