What is the meaning of the 1257L tax code?
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The 1257L tax code meaning represents a tax-free personal allowance of £12,570 for the tax year, used by HMRC in the UK. The "L" suffix means you're eligible for the standard allowance. This code is used to calculate how much income tax should be deducted from your earnings. If you're employed with no other significant income sources or tax complications, 1257L is likely your default code. A wrong tax code can lead to overpaying or underpaying tax, so it’s worth checking periodically.