View Image

A warning has been issued for UK workers who are on THREE tax codes. According to the Labour Party government, the most common code for people with one job or a pension is '1257L' right now.

The 'L' within this indicates you're eligible for the standard tax-free Personal Allowance - the sum you can earn annually before paying tax. This amount currently stands at £12,570, explaining the '1257L' code.

But some payslips may display tax codes like 'W1', 'M1', or 'X'. These typically signify 'emergency situations' that occur during events such as starting a new job, receiving company benefits, or beginning to collect a State Pension.

READ MORE Monzo makes change to buy now, pay later for 13 million customers

The government explains: "You’re entitled to the standard tax-free Pe

See Full Page