Tax Code 1257T Explained

What does 1257T mean?

1257T is used when your tax code includes items that HMRC has not finalised - for example complex residency, multiple income sources, or pending P11D figures. The numeric allowance is unchanged, but the T marker tells payroll software not to apply automatic uplifts; HMRC will issue a corrected P2 once the review is complete.

Breakdown of the code

• 1257

  Number

  Multiply by 10 - base allowance.

• T

  Letter

  Standard allowance, but with items HMRC needs to review (T = "to be reviewed").

Worked example

Director with multiple income streams under HMRC review on £60,000 (paid monthly).

Same maths as 1257L - but the code will not auto-uplift in 2027/28.

Who should be on 1257T?

• Taxpayers with multiple income sources requiring manual review
• People with complex residency or domicile circumstances
• Anyone whose code is being investigated for a non-standard reason

Common problems

• The review takes longer than expected and the T code remains in place into the next tax year.
• You expected the T to roll into a definitive code (1257L, 1257M etc.) but no notice arrived.

What to do if 1257T looks wrong

1. Sign in to your HMRC personal tax account at gov.uk/personal-tax-account and open the latest P2 (Notice of Coding) - it itemises every adjustment.
2. Compare the code on your most recent payslip with the code HMRC has on file; employers occasionally apply an old code if a P9 was missed.
3. Confirm your employer received your P45, or that you completed a starter checklist if you joined mid-year.
4. Check whether benefits-in-kind such as a company car, fuel, or medical insurance have changed and ask payroll to file an updated P11D.
5. Call HMRC on 0300 200 3300 (Mon-Fri, 8am-6pm) with your National Insurance number if the online tools cannot resolve it.
6. If you have overpaid, HMRC normally refunds via your next payslip once the code is corrected. For closed years request a P800 review.

If you should be on a different code…

Quick decision tree - when 1257T is the wrong fit, here is the most likely correct code.

• If you have a single PAYE job and no benefits-in-kind - you should be on 1257L.

  Standard personal allowance of £12,570 for England, Wales and NI.