Model how UK tax codes such as 1257L, BR, D0, 0T, K, S and C prefixes can affect estimated PAYE salary and take-home pay.
Use this page to model how a tax code may affect a PAYE salary estimate in the 2026/27 tax year. It explains common code parts, where to find the code to enter, and when to check HMRC or payroll. It does not decide the correct tax code.
Enter the salary and the code from your payslip. The estimate updates as you type. This models the code you enter; it does not decide which code is right for you.
Of £35,000.00 gross a year: Income Tax £4,486.00, National Insurance £1,794.40, Take-home £28,719.60.
£35,000 sits in the basic Income Tax band — £15,270 below the higher Income Tax band, which starts at £50,270.
Saving £120 a month — about 5% of this take-home — becomes £7,941.48 in five years at an example 4%: try the savings calculator.
2026/27 rates, England, Wales and Northern Ireland, no student loan. Open the full calculator to change region, student loan or pension method.
Payslip showing different figures? The payslip checker works out what your pay and tax code should have produced and shows which assumption could explain the gap.
Enter a code from a payslip, HMRC account, P45 or P60. Examples: 1257L, S1257L, BR, D0, 0T, K475 or 1257L W1.
For modelling in PayBreakdown, 1257L usually means about GBP 12,570 of tax-free pay is applied before PAYE Income Tax is estimated.
| Tax/source year | 2026/27 |
|---|---|
| Region | England/Wales/Northern Ireland |
| Tax code basis | 1257L where the page uses PAYE defaults |
| Pension basis | No pension deduction unless this example says otherwise |
| Student loan basis | No student loan unless selected in this example |
| Gross pay | Employment pay before PAYE deductions and pension or loan settings. |
|---|---|
| Income Tax | Tax estimated from the selected tax-year, region, tax code and taxable-pay assumptions. |
| National Insurance | Employee NI is calculated separately from Income Tax and may not follow the same bands. |
| Pension and loans | Pension method and student-loan plan can change take-home pay and payslip comparisons. |
| Pension contribution | Changing the rate or method can change taxable income, National Insurance and take-home pay. |
|---|---|
| Tax code and region | Scottish Income Tax, Welsh codes, emergency tax or a non-standard tax code can move the result. |
| Student loan plan | A different plan can change deductions because each plan uses its own threshold and repayment rate. |
| Bonus, overtime or second job | Extra pay and payroll timing can make a real payslip differ from the smooth annual estimate. |
| Tax code | HMRC tax-code changes, K codes, BR/D codes, or emergency markers can change PAYE deductions. |
|---|---|
| Cumulative basis | Week 1, Month 1 or non-cumulative payroll can differ from a smooth annual calculator estimate. |
| Pension method | Relief at source, net pay and salary sacrifice can affect taxable pay and take-home pay differently. |
| Payroll timing | Bonus, overtime, arrears, refunds, cut-off dates and corrections can all move a single payslip. |
| Why is the tax on my payslip higher than expected? | payslip difference |
|---|---|
| What do the main payslip lines mean? | payslip explainer |
| What tax code should I use for modelling? | tax code |
| How much does pension reduce take-home pay? | pension comparison |
| How does this affect a monthly budget? | budget planning |
| What is not decided here | PayBreakdown does not decide payroll correctness, lender approval, benefit entitlement or employer compliance, and does not give regulated financial, mortgage, debt, tax, payroll or legal advice. |
|---|
The figures on this page are worked from tax code, using the values below. Open the calculator if your example salary differs.
A tax code tells payroll how much tax-free pay or special treatment to apply before PAYE Income Tax is estimated. PayBreakdown uses the code as a modelling input alongside salary, region, pension and student-loan settings.
The best modelling input is the current code shown on the payslip, HMRC online service or HMRC app. If those records do not match, treat the calculator as a comparison tool while the code is checked.
You can model how a code changes an estimate here, but the code itself comes from HMRC and only HMRC can confirm which one is right for you. It depends on your allowances, any benefits in kind, other income, and whether an earlier underpayment is being collected through the code.
This estimate is worked out on £35,000 annual gross. Change any of those and the take-home figure moves; pension method and student loan plan usually move it most. A payslip can differ from any calculator because payroll works pay period by pay period, so a tax-code change, a bonus, arrears or a refund can land in one month and not the next. See how each deduction is worked out.
No. PayBreakdown can model how a code affects a salary estimate, but the current code should be checked against the payslip, HMRC online service, HMRC app, P45 or payroll records.
1257L is the standard-code example for many people with one job or pension. It usually models the standard Personal Allowance, but real codes can include adjustments that the calculator cannot see.
BR and D-rate codes can tax all pay from a job or pension at one rate, 0T applies no Personal Allowance, and K codes add an amount to taxable pay. The result is an estimate only.
It can be one possible reason. Payslips can also differ because of pension method, student-loan notices, payroll timing, bonus or overtime, benefits, refunds, arrears or non-cumulative tax.
Last updated 2026-08-27. Checked by Sean Elsmore. Rates last checked against GOV.UK on 2026-08-07. Estimates are for planning and should be checked against official records where the decision matters.