Whether you’re an actor, musician, artist, or freelance creative, understanding your tax code is key to making sure you’re paying the right amount of tax—and not more than you need to. One of the most common tax codes in the UK is 1257L, but what does it actually mean, and how does it affect you as a creative professional?
What Does the 1257L Tax Code Mean?
The 1257L tax code is the standard personal allowance tax code used in the UK. It tells your employer (or payroll software) how much of your income is tax-free.
- The number 1257 refers to the £12,570 tax-free personal allowance for the 2024/25 tax year.
- The ‘L’ indicates that you’re entitled to the standard tax-free allowance.
This means that the first £12,570 you earn in a year is not taxed. Anything above that is taxed according to standard income tax bands.
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How 1257L Tax Code Works in 2024/25
For the 2024/25 tax year:
- You do not pay tax on your first £12,570 of income.
- Income above that is taxed at:
- 20% (basic rate) up to £50,270,
- 40% (higher rate) from £50,271 to £125,140,
- 45% (additional rate) on income over £125,140.
If you’re employed, your employer will use your tax code to deduct income tax through Pay As You Earn (PAYE). If you’re self-employed or freelance, you’ll still get the £12,570 allowance, but it’s factored into your Self Assessment tax return.
Why Might My Tax Code Be Different?
As a creative or entertainer, you may have:
- Multiple income sources (e.g. part-time jobs, freelancing, royalties).
- Changing gigs or contracts throughout the year.
- Income that’s not regular or salaried.
These factors can affect your tax code. Some reasons it may change:
1. You Have Multiple Jobs
If you have more than one job or source of PAYE income, HMRC may apply the 1257L code to only one of them. The others may have a code like BR (basic rate tax), which taxes all income at 20% with no allowance applied.
2. You’re Underpaid or Overpaid Tax Last Year
If HMRC thinks you owe tax from a previous year, they might adjust your current code to collect it gradually. This will show up in your tax code as a number change or a letter like K.
3. You Receive Benefits or Expenses
If you get taxable benefits (like a company car or paid travel), your personal allowance could be reduced in your code to account for this.
Common Questions About the 1257L Tax Code
- Do I need to do anything if I see 1257L on my payslip?
Nope—this is the standard tax code. If it’s showing on your main job, and you don’t have extra income elsewhere, you’re good to go.
- I’m freelance—does 1257L still apply to me?
If you’re self-employed, you won’t see a code on a payslip, but you still get the £12,570 allowance. It’s applied when you file your Self Assessment return. However, if you have a part-time PAYE job as well, the code may apply there.
- I’m on 1257L at two jobs. Will I pay the right tax?
Probably not. The tax-free allowance should only apply to one income. If both jobs use 1257L, you might underpay tax and face a bill later. You can contact HMRC to assign the allowance to the main income.
- Why did my tax code suddenly change?
HMRC may change it based on:
- New information from your employer.
- An estimate of benefits in kind.
- Previous year’s underpayments.
- Updates to your freelance/self-employed income.
You should always get a letter (or check your personal tax account online) if your code changes.
- How do I check if my tax code is correct?
You can:
- Look at your latest payslip.
- Log in to your HMRC Personal Tax Account.
- Call HMRC on 0300 200 3300 if you’re unsure.
Final Thoughts: Why It Matters
Understanding your tax code—especially 1257L—can save you headaches (and surprise tax bills). As a creative professional, your income may be irregular, seasonal, or come from multiple sources, so keeping track of how you’re taxed is vital.
The good news? If you’re on 1257L, your tax-free allowance is being applied correctly. But if you see a different code or have questions, don’t ignore it—check with HMRC or a tax adviser who understands creative industry needs.