These figures are correct for the 2024/25 tax year.
S1257L is the most common tax code in Scotland for the 2024/25 tax year, which started on 6th April 2024. The ‘S’ identifies you as a Scottish Income Tax payer.
In England and Northern Ireland, the equivalent tax code is 1257L. Wales’ equivalent tax code is C1257L.
What does it mean?
Nearly everyone 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 includes S1257L, it means your allowance is £12,570.
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 £242 per week. If you’re paid monthly, it is £1048 per month.
In Scotland, you are taxed as follows*:
- 19% on earnings between £12,571 and £14,877
- 20% on earnings between £14,878 and £25,561
- 21% on earnings between £25,562 and £43,662
- 42% on earnings between £43,663 and £75,000
- 45% on earnings between £75,001 and £125,140
- 46% on earnings above £125,140
*These figures assume that you are in receipt of a standard £12,570 personal allowance.
S1257L 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.
However, if your tax code has W1 or M1 attached to it (e.g. S1257L-W1 or S1257L-M1), it’s non-cumulative. The tax due on each payment is therefore determined without taking into account any tax you’ve already paid this year, or how much of your tax-free personal allowance has been used. In other words, it can result in you overpaying tax. If you see either of these codes on your payslip, you might want to double check if this is the best tax code for you.