What Does Tax Code 1263L Mean?

[inshya]

I recently noticed that my payslip shows Tax Code 1263L, and I’m trying to understand what it means. From what I know, Tax Code 1263L determines how much tax-free income I’m entitled to before income tax is applied — but I’d like a clearer explanation. Can someone break down how Tax Code 1263L is calculated, what income or benefits it covers, and whether it’s a standard code for most employees? Also, if my circumstances change, how can I update or correct my Tax Code 1263L with HMRC?

 

[Emly]

Tax code 1263L means you get a £12,630 tax-free personal allowance for the year. The “L” shows you receive the standard allowance, and the slight increase usually comes from small job-related expense allowances.

 

[Lucas]

Tax code 1263L means you’re allowed £12,630 of tax-free income in the UK for the tax year. The “L” shows you get the standard personal allowance, and 1263 indicates how much of that allowance applies before you start paying income tax.

 

[rajivkumar]

Tax code 1263L gives you a £12,630 tax-free personal allowance for the year. The "L" indicates that you receive the normal allowance, with the tiny increase typically coming from small job-related expense allowances.

 

[James Miller]

In case you are on code 1263L, that is, you have a personal allowance of 12,630, which is tax-free in the year. The L means that you have the amount of personal allowance that is usual. It provides an additional 1257L code (tax-free 60) of income at the end of the year as compared to the more popular 1257L.

 

[lara]

Assuming that you are on 1263L this is, you have a personal allowance of 12,630, which does not attract tax in the year. The L indicates the personal allowance of the amount that is ordinary. It offers an extra code 1257L (tax-free 60) of income to the end of the year compared to the 1257L that is much more popular.