Tax codes one by one
S1257L tax code
The standard allowance with Scottish bands: what the S changes and who it applies to.
Tax-free pay from this job
£12,570 a year
- 1257 × 10 = £12,570, and the letter L means the standard tax-free Personal Allowance.
- Scottish rates
- Cumulative: allowance and bands build up through the tax year, so over- or under-payments correct themselves
| Tax-free pay each month | £1,048.26 |
| Tax over the year on £40,000 | £5,548.97 |
| That is, each month | £462.41 |
| With S1257L instead | £5,548.97 |
Estimate with HMRC’s payroll method and the same pay every month. Only HMRC can change your code.
S1257L is the standard tax code of a Scottish taxpayer. The number is the same as in the rest of the UK: £12,570 of tax-free pay for 2026 to 2027, written as 1257. The S tells the employer or pension provider to use the Scottish Income Tax rates instead of those of England and Northern Ireland. There are six rates above the allowance: starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%. The starter band ends at £16,537 of income, the basic band at £29,526, the intermediate band at £43,662 and the higher band at £75,000. As a result, someone on £25,000 pays £2,444.33 a year with S1257L against £2,484.00 with 1257L, while at £60,000 the Scottish bill is £13,177.85 against £11,428.00. You get the S if you live in Scotland, or if Scotland is your main home when you have more than one. The rates for 2027 to 2028 are not published yet: the Scottish Budget is expected on 3 December 2026.
Scottish rates against England
Tax with S1257L
£5,548.97
| With 1257L (England) | £5,484.00 |
| Difference over the year | £64.97 |
| Each month | £5.41 |
Rules read on HMRC’s texts by Radif Partners · Editorial policy · Method
The Scottish bands behind S1257L in 2026 to 2027
The allowance is UK-wide; the bands above it are set in Scotland. The figures below are total income with the standard £12,570 allowance, as shown on GOV.UK. Payroll software uses the same bands expressed above the PAYE threshold, published in the rates and thresholds for employers.
| Rate | Income | Scottish rate |
|---|---|---|
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | over £125,140 | 48% |
Scottish rates cover wages, pensions and most other taxable income. Savings interest and dividends are taxed at the same rates as in the rest of the UK, so an S code affects only what comes through PAYE and similar income.
S1257L against 1257L at different salaries
The starter band gives a small saving at modest pay; the intermediate rate of 21% and the higher rate of 42% take it back further up. The higher rate also starts earlier, at £43,663 rather than £50,271.
| Yearly pay | With S1257L | With 1257L | Difference |
|---|---|---|---|
| £20,000 | £1,444.33 | £1,484.00 | £-39.67 |
| £30,000 | £3,448.97 | £3,484.00 | £-35.03 |
| £45,000 | £6,877.85 | £6,484.00 | £393.85 |
| £80,000 | £21,727.55 | £19,428.00 | £2,299.55 |
On a payslip the difference is spread over the year. Someone paid £2,500 a month loses £287.27 in month 1 with S1257L, against £290.20 with 1257L. At £4,000 a month the figures are £677.87 and £590.20. The free pay itself, £1,048.26 a month, is identical: only the rates applied to the rest change.
Income Tax for the year by band
Income Tax for the year
£6,882.05
| Personal Allowance | £12,570 |
| Taxed income | £32,430 |
| Top band reached | higher, 42% |
| Each month | £573.50 |
How HMRC decides you are a Scottish taxpayer
Living in Scotland is the plain case. With two homes, the one that counts is your main home: normally the place where you live and pass most of your time, owned, rented or lived in for free. The home where you spend less time can still count if most of your possessions are there, your spouse or civil partner lives there, or your bank, doctor and car insurance are registered there. Lorry drivers, offshore workers and members of the armed forces often face this question.
If you cannot tell which home is your main one, or you have none, GOV.UK says to count days: a day is spent wherever you are at midnight, and spending more days in Scotland than in the rest of the UK makes you a Scottish taxpayer for the whole year. After a move, HMRC backdates the new rate to 6 April of that year. Keep your address up to date in your HMRC online account: GOV.UK warns that the rate applied to you may be wrong if HMRC does not have your new address after a move to or from Scotland.
Variants of S1257L and what comes next
The emergency version, 1257L M1 or W1, never carries an S: HMRC's specification says there is a single emergency code for the whole UK. Codes that change the allowance keep the prefix, such as S1383M for someone receiving Marriage Allowance, where the partner's income must stay under £43,662 in Scotland (GOV.UK). Flat codes for a second job become SBR, SD0 and upwards, explained on the Scottish codes page. For 2027 to 2028, the allowance stays at £12,570, so the code should stay S1257L, but the Scottish bands are only expected with the Budget on 3 December 2026.