What does an HMRC tax code notice mean?
A tax code notice (often called a P2 or 'PAYE coding notice') tells you the tax code HMRC has issued to your employer or pension provider, and how it was worked out. It is information rather than a demand — but it is worth checking, because a wrong code means you pay too much or too little tax.
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A tax code notice (often called a P2 or 'PAYE coding notice') tells you the tax code HMRC has issued to your employer or pension provider, and how it was worked out. It is information rather than a demand — but it is worth checking, because a wrong code means you pay too much or too little tax.
Last reviewed: July 2026 · Written in plain English, checked against gov.uk · Information only, not legal advice
Tax code notice (P2): the essentials
- What it isNotice of the tax code used on your pay or pension
- Why it mattersA wrong code changes how much tax you pay
- Common code1257L is the typical code for one main job
- Action neededNone if correct — contact HMRC if it looks wrong
- UrgencyLow
How do I read my tax code?
A tax code is usually a number followed by a letter, such as 1257L. The number, multiplied by ten, is roughly the tax-free income you are allowed in the year, and the letter reflects your situation — 'L' is the standard personal allowance. Codes with 'BR', 'D0', or a 'K' prefix, or ending in 'W1'/'M1', signal something specific, like a second job or an emergency code. The notice explains the allowances and deductions that produced your code.
Why has my tax code changed?
HMRC updates your code when something affecting your tax changes: starting or leaving a job, a new company benefit like a car or medical insurance, a change in taxable income, underpaid tax being collected from a previous year, or claiming an allowance. The notice lists what has been added or taken away. Because the code is HMRC's estimate, it is worth checking those items match your actual circumstances.
What should I do if my tax code is wrong?
If the notice includes income or benefits you no longer have, or misses an allowance you are due, contact HMRC to correct it — through your Personal Tax Account online or by phone. Getting it fixed promptly avoids paying too much tax (which you would later reclaim) or too little (which builds an underpayment collected later). You do not need to do anything if the code and the items behind it look right.
What happens if you ignore it?
A tax code notice needs no action if it is correct, so ignoring an accurate one is fine. But ignoring a wrong code has a cost: an over-restrictive code means too much tax leaves your pay until you reclaim it, and an over-generous code builds an underpayment HMRC collects later, sometimes as an unwelcome lump sum. A quick check against your circumstances is the sensible response.
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See what your letter means — freeFrequently asked questions
What does the L in my tax code mean?
The letter L means you get the standard tax-free personal allowance. Other letters signal different situations, such as a second job (BR) or income taxed at higher rates (D0).
Is 1257L a normal tax code?
Yes — 1257L is the most common code for someone with one job or pension and the standard personal allowance.
How do I change my tax code?
You cannot change it directly, but you can tell HMRC (online or by phone) what is wrong, and HMRC issues a corrected code to your employer or pension.
Official sources & free help
For the full detail — and free, independent advice — see: