Your tax code includes other calculations to work out your Personal Allowance Marriage Allowance: you’ve transferred 10% of your Personal Allowance to your partner Marriage Allowance: you’ve received a transfer of 10% of your partner’s Personal Allowance You’re entitled to the standard tax-free Personal Allowance
Letters in your tax code refer to your situation and how it affects your Personal Allowance. They also consider the value of any benefits from your job (such as a company car). HMRC works out your individual number based on your tax-free Personal Allowance and income you have not paid tax on (such as untaxed interest or part-time earnings).
The numbers in your tax code tell your employer or pension provider how much tax-free income you get in that tax year. HMRC will usually contact you to explain how they worked out your individual tax code if your tax code changes. 1257L is the tax code currently used for most people who have one job or pension.
