What is the tax code for the 2024-25 tax year?

The 2024/2025 tax year starts on April 6 2024 and will bring about changes in how certain individuals pay income tax.

For individuals receiving income through PAYE it is crucial to verify the accuracy of their tax code as it plays a significant role in how much income tax you will pay.

The normal tax code for the 2024-25 tax year is set at 1257L.

HMRC usually uses a 1257L tax code for individuals who have a single job and do not have any untaxed income, outstanding tax payments, or a taxable company benefit.

Your employer will receive a copy of your 2024 tax code from HMRC before the 2024/25 tax year starts so they know what tax code to use for the most recent tax year.

The standard tax code of 1257L for the 2024/25 tax year is identical to the previous tax year and is currently anticipated to remain in use until April 2028.

What does the 2024/25 tax code mean?

The 1257L tax code indicates that the basic tax free personal allowance remains unchanged for the 2024/2025 tax year.

The basic tax free allowance 2024 is £12,570, which is calculated by multiplying 1257 by 10.

HMRC will use a 1257L tax code as a baseline for all individuals and any modifications to it will be made based on individual circumstances either increasing or decreasing the code.

For example if you have employer benefits like a health scheme or company car you should expect your tax code to be lower than 1257L because of the benefit in kind.

What should my tax code be 2024?

What your tax code should be in 2024 depends on a few factors which are specific to your own set of circumstances.

The normal tax code in 2024 is 1257L but this doesn’t mean that everyone should have the same tax code.

Why is my tax code 1257L from April 2024?

The tax code for the year 2024/25 of 1257L means that HMRC expects you to meet the criteria for the regular personal allowance and have no other factors impacting your 2024/25 tax free allowance.

Several factors have the potential to alter your tax code from 1257L to a tax code higher or lower.

2024 tax codes higher than 1257L:

In situations where your tax code is higher than the standard tax code it’s often because you have an additional allowance included in your code. Tax code allowances include employment expenses, the married persons allowance and working from home allowance.

2024 tax codes lower than 1257L:

A tax code with a value lower than 1257L usually incorporates P11D benefits from an employer like a company car.

Check your 2024/25 tax code

It’s advisable to check your tax code for the 2024/2025 tax year to ensure its accuracy. If the code is too low you may end up paying excess income tax and if it’s too high you may not be paying enough leading to a tax bill.

You can make use of our free tax code guide to assist you in understanding your tax code better.

If you suspect that your tax code is incorrect, it is best to get in contact with HMRC as soon as feasible so they can review it and make any changes necessary.

At times HMRC requires assistance from individuals to guarantee that their tax codes are accurate.

The PAYE system isn’t flawless with HMRC unaware of some personal circumstances until a delayed date or sometimes not at all.

Is 1257L an emergency 2024 tax code?

The emergency tax code 1257L is applicable only when it is followed by the letters ‘W1’, ‘M1’, or ‘X’.

An emergency 1257L code is usually only meant for new employees who don’t have a P45 form to give to their current employer.

Where can I find my 2024 tax code?

The most convenient locations to find your tax code for the 2024/25 tax year are either on your payslip (if it is dated after the 5 April 2024) or by using one of HMRC’s digital services mainly your personal tax account or the HMRC app.

If you don’t already have a personal tax account you can set one up via .GOV and you’ll require your national insurance number or postcode, as well as two of the following:

  • A valid UK passport or UK photocard driving licence issued by the DVLA (or DVA in Northern Ireland).
  • A payslip from the last three months or a P60 from your employer for the previous tax year.
  • Details of a tax credit claim.
  • Details from a self assessment tax return in the last two years.
  • Information from your credit record like a personal loan or credit card.

HMRC might send you a tax coding notice letter which is also referred to as Form P2 usually at the beginning of the tax year.

The P2 specifies your updated tax code but also provides an explanation for the PAYE notice of coding assigned to you.

2024/25 personal allowance

The number part of your 24/25 tax code reflects the tax free amount 2024 that you are eligible for from April 2024.

Using the 1257L tax code as an example the personal allowance is worked out by multiplying the tax code numbers of 1257 by 10 which gives you a total of £12,570 tax free income.

Any earnings above the personal allowance threshold will be subject to the appropriate basic, higher, or additional rate of income tax.

Any changes to your personal allowance can result in either an increase or decrease in the amount of tax you are required to pay and have a knock on effect to your tax code.

Even if the personal allowance remains the same from one tax year to the next it can still impact your tax liability especially if your income for the 2024/25 tax year increases and a larger portion of your total income exceeds the threshold of £12,570.

How to change your 2024/25 tax code with HMRC

If you have any queries regarding your 2024 tax code you can check online or you can contact HMRC via their call centre to speak to an advisor.

Using HMRC’s online services like the personal tax account and app are a good way to start your tax code checks and can save you some time and effort.

Our tax code FAQ’s give you more tax code information to help make your own assessments before contacting HMRC.

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