Emergency tax codes in the UK

Emergency tax code is applied when HM Revenue and Customs (HMRC) does not have enough information about your income to assign a specific tax code. This can happen if you are starting a new job, or if HMRC does not have details from your previous employer or tax records. Emergency tax codes are used temporarily code until the correct tax code is assigned.

There are several types of emergency tax codes, but the most common ones are:

  1. 1257L: This is the most common emergency tax code for the tax year 2024/2025 and reflects the standard personal allowance (the amount you can earn before paying income tax). This means you are entitled to the basic personal allowance of £12,570. However, you may still be taxed at the basic rate of 20% if the emergency tax code applies.
  2. BR: This code stands for “basic rate” and means that all your income will be taxed at the basic rate of 20%, with no personal allowance. BR code is often used if you have multiple jobs or if HMRC does not know your full income.
  3. NT: This code means “no tax” and is used if you should not be paying any tax, for example, if you are on a tax-exempt pension or have reached the state pension age.
  4. D0 or D1: These codes are used when income is taxed at the higher rate (40%) or additional rate (45%) of tax, respectively.

Why You Might Get an Emergency Tax Code:

  • New job or no previous employment information: If you start a new job and HMRC doesn’t have details of your previous earnings, they might apply an emergency tax code.
  • No previous records: If you have not submitted a tax return, or if you have recently changed jobs or pensions, your income may be taxed under an emergency code.
  • Tax discrepancies: If there is a problem with your tax records, you may receive an emergency tax code until the issue is resolved.

What to Do If You Have an Emergency Tax Code:

  • Check your tax code: If you think you’ve been given an emergency tax code by mistake, check with your employer or HMRC. You can contact HMRC directly or use your personal tax account online to update your details.
  • Wait for a correction: Once HMRC has the correct information, your tax code should be updated, and any overpaid tax may be refunded.

If you feel your emergency tax code is incorrect, it is important to resolve the issue quickly, as it can lead to paying too much or too little tax.