Checking Your Tax Code for 2025/26
Employees, employers, and
payroll teams who need to verify their tax code for the 2025–26 tax year.
Explains how to check your 2025–26 tax code, what the numbers and letters mean, and why it’s important to make sure you’re on the correct code.
An
incorrect tax code can lead to overpayment or underpayment of tax. Understanding your code helps ensure you’re paying the right amount and avoid surprises at the end of the tax year.
Do you know what your
2025–26 tax code means? It affects how much tax is taken from your pay or pension. Check now to make sure you’re on the right code and not overpaying! Here’s what the letters and numbers really mean.
Where to Find Your Tax Code
You can find your tax code in several places:
- By checking your tax code for the current year online – you’ll need to sign in to or create an online account
- On the HMRC app
- On your payslip
- On a ‘Tax Code Notice’ letter from HMRC if you get one
What Your Tax Code Means
The tax codes are updated annually. The
basic personal allowance for the 2025–26 tax year is
£12,570. The corresponding tax code for an employee entitled to the standard
tax-free Personal Allowance is
1257L.
This is the most common tax code and is used for most people with:
- One job
- No untaxed income
- No unpaid tax or taxable benefits (e.g., a company car)
Additional Letters and Numbers in Your Tax Code
There are many other numbers and letters that may appear in your tax code. For example:
- M – If you are claiming the marriage allowance.
- S – If your income or pension is taxed using the Scottish rates.
If your tax code numbers change, it usually means your personal allowance has been reduced for reasons such as
unpaid tax or income adjustments.
Emergency Tax Codes
There are also
emergency tax codes (W1 or M1), which are used when a new employee doesn’t have a P45. These codes mean your tax calculation is based only on the current pay period.
What Does a Tax Code Starting with ‘K’ Mean?
If your tax code starts with a
‘K’, it means that deductions due for company benefits, state pension, or previous tax owed are greater than your personal allowance. However, the tax deduction for each pay period cannot exceed
half of your pre-tax pay or pension.
Real-World Application
It is important to check your tax code to ensure the correct information is being used. An incorrect tax code can result in paying more or less tax than necessary, which may lead to overpayments or unpaid tax that could be reclaimed or owed at a later date.
Risks and Consequences
If your tax code is incorrect:
- Overpayment: You may end up paying more tax than necessary, which will eventually be refunded once the correct code is applied.
- Underpayment: You could owe money to HMRC, which may result in interest or penalties.
Next Steps
If you’re unsure about your tax code or suspect it’s wrong, it’s crucial to check it now. Contact
HMRC or your employer to ensure you’re on the correct tax code and avoid potential issues with overpayment or underpayment.
Checking Your Tax Code for 2025/26 and Ensuring Correct Deductions in London
With the new tax year approaching, it’s important to review your tax code to ensure it accurately reflects your financial situation and avoids overpaying or underpaying tax. Cigma Accounting, based in Kingston upon Thames in London, helps individuals check their tax codes and resolve any discrepancies, providing expert support through our knowledgeable tax accountant London services.
Tax codes can change due to adjustments in income, benefits, or personal allowances, and incorrect codes can cause confusion or errors in your take-home pay. Individuals living or working around Hampton Wick and Surbiton often need guidance on whether their tax code is correct, and with physical offices across London, Cigma Accounting offers trusted advice and accounting services London to ensure you’re paying the right amount of tax in the new tax year.
