1250L

1250L is the most common tax code in England and Northern Ireland for the 2020/21 tax year, which started on 6th April 2020. You usually get a new tax code at the beginning of a tax year because this is often when changes to your personal allowance come into effect.

In Wales, the equivalent tax code is C1250L and in Scotland it is S1250L.

What does it mean?

Nearly everyone in the UK is entitled to a tax-free personal allowance, which means that a certain amount of your earnings each year are paid to you without being taxed. If your tax code is 1250L, it means your allowance is £12,500.

It is given to you in equal portions throughout the year, so that by the end of the tax year you have received your full allowance.

For example, if you are paid weekly, your allowance is equivalent to £240 per week. If you’re paid monthly, it’s £1,042 per month.

Unless you’re in Scotland, any earnings over and above your personal allowance will be taxed as follows:

  • 20% on earnings up to £37,500
  • 40% on earnings between £37,501 and £150,000
  • 45% on earnings above £150,001

1250L is a cumulative tax code, which means that if you return to work after a break or if you start working part-way through the tax year, your tax-free personal allowance will have been building up and you may pay less tax for a while.

 

find out how to give supply teaching a boost of stability and security

These figures are correct for the 2020/21 tax year.