Tax code after starting a new job

By PaySlipCheck · 12 June 2026 · 7 min read

Our guides are drafted with AI assistance and checked against official and primary sources before publishing. Figures are reviewed on the date shown. General information, not professional advice.

Your first payslip from a new UK job sets the tone for several pay periods. If you handed over a P45 from your previous employer, your new employer's payroll usually applies the right code from day one. Without a P45, you complete HMRC's starter checklist, and your answer decides the code your employer uses until HMRC sends one: 1257L cumulative, 1257L on a week 1/month 1 (emergency) basis, BR, or 0T if you give no information. HMRC usually replaces a temporary code within a few pay periods. This page covers each variation, with 2026/27 worked examples, and what to do if it doesn't sort itself out.

Checked against the 6 sources listed below · Last reviewed 27 October 2026
On this page
  1. The first payslip — what determines your code
  2. Why employers must use HMRC's defaults
  3. Worked example — Statement A on £35,000 start in October
  4. Worked example — Statement C on £35,000 start in October
  5. When emergency codes resolve
  6. What to do if emergency code persists past 8 weeks
  7. The P45 you receive when you leave
  8. Self-employed transitioning to PAYE
  9. What to verify on your first payslip
  10. Practical checklist
  11. In short

The first payslip — what determines your code

Two paths into a new job:

Path 1 — With P45

You give your new employer the P45 from your previous job. The P45 contains: - Your tax code at the date of leaving - Year-to-date taxable pay - Year-to-date tax deducted

Your new employer's payroll uses the P45's tax code and continues year-to-date totals. You're effectively continuing the same tax position with a new employer.

Result: typically 1257L cumulative immediately, correct tax from first payslip.

Path 2 — Without P45 (new-starter checklist)

If you didn't give a P45 (lost it, previous job didn't issue, gap between jobs), your new employer asks you to complete an HMRC new-starter checklist.

The checklist asks you to pick one statement:

Statement A: this is your first job since 6 April, and since then you haven't received taxable Jobseeker's Allowance, Employment and Support Allowance or Incapacity Benefit, or a State or occupational pension. - Result: code 1257L on a cumulative basis. You get the whole year's allowance to date, including the months before you started.

Statement B: this is now your only job, but since 6 April you've had another job or received one of those taxable benefits. You don't receive a State or occupational pension. - Result: code 1257L on a week 1/month 1 basis (shown as 1257L W1 or 1257L M1, and reported to HMRC with an "X" flag). Each pay period gets 1/52 or 1/12 of the allowance, so allowance you may already have used in the earlier job isn't given twice.

Statement C: as well as this job, you have another job or receive a State or occupational pension. - Result: code BR, so everything is taxed at 20%. This assumes your allowance is being used by the other job or pension.

No P45 and no checklist: your employer uses 0T on a week 1/month 1 basis. That means no personal allowance, with 20%, 40% and 45% applied to each period's pay.

Why employers must use HMRC's defaults

When HMRC doesn't have full data on your year-to-date earnings: - It can't issue a cumulative tax code with confidence - It can't risk over-claiming your personal allowance (which would mean owing tax later) - Default to a "safe" code (emergency basis or BR) and let cumulative code arrive when data is in place

Usually within a few pay periods of starting, HMRC matches up: - Your P45 (if you provided one) - Your new-starter checklist response - Your previous employer's RTI submissions - Any other PAYE income sources

Then HMRC issues a cumulative tax code to your new employer. The next pay run applies the new code AND catches up the year-to-date position.

Worked example — Statement A on £35,000 start in October

  • Job started 1 October 2026
  • Annual gross £35,000 → monthly £2,917
  • Statement A → code 1257L cumulative

October payslip: - October is month 7 of the tax year (April-March) - You've had 6 months of zero employment income (according to your statement) - HMRC's cumulative calculation: year-to-date allowance £12,570 × 7/12 = £7,332.50 - Year-to-date earnings: £2,917 (this month only) - Below year-to-date allowance → £0 tax for October - Possible: small refund if HMRC's records had any over-deduction

November payslip: - Year-to-date allowance: £8,380 - Year-to-date earnings: £5,834 - Still below allowance → £0 tax

December payslip: - YTD allowance: £9,428 - YTD earnings: £8,751 - Still below → £0 tax

January payslip: - YTD allowance: £10,475 - YTD earnings: £11,668 - Above allowance by £1,193 → 20% × £1,193 = £239 tax

February and March payslips: - Each month adds £2,917 of pay but only £1,047.50 of allowance - Tax ≈ 20% × (£2,917 − £1,047.50) = about £374 a month

Total tax for October to March: about £986. That's exactly 20% of (£17,502 earned − £12,570 allowance), the correct figure for the year if this is your only income.

This is the "cumulative catch-up" pattern. Statement A is correct when you genuinely had no taxable earnings earlier in the year.

Worked example — Statement C on £35,000 start in October

Same start date and salary, but Statement C (other job/pension exists).

Code: BR (basic rate, no allowance)

October payslip: - Gross £2,917 - Tax 20% × £2,917 = £583

November-March: same. Total tax for the year (Oct-Mar): about £3,500

If you genuinely have another job using your allowance, BR is right. If you don't, it's about £2,514 too much compared with the £986 in the Statement A example. Update your details with HMRC (online or in the HMRC app) and it will send your employer a cumulative 1257L code. The overpayment then comes back through payroll, or by a P800 refund after the tax year ends.

When emergency codes resolve

Most new-job emergency codes resolve in 1-3 pay periods. The pattern:

Pay run Likely code Notes
1 (first) 1257L, 1257L W1/M1, BR or 0T W1/M1 Per P45 or starter checklist
2 Same as run 1 HMRC still processing
3 Often switched to 1257L cumulative HMRC has caught up
4+ 1257L cumulative Steady state

For monthly-paid workers: usually resolved by month 3 or 4. For weekly-paid workers: usually by week 6-8.

What to do if emergency code persists past 8 weeks

  1. Log into HMRC Personal Tax Account at gov.uk/personal-tax-account
  2. Confirm your new job is listed correctly with start date
  3. Verify previous employment is shown (P45 data submitted)
  4. Update any missing fields (gap year, time abroad, etc.)
  5. Wait 2-4 weeks for HMRC to issue corrected code

If self-service doesn't help, call HMRC on 0300 200 3300.

The P45 you receive when you leave

When you leave a job: - Your employer should give you a P45, usually with or soon after your final pay - It has parts 1A, 2 and 3 - You give parts 2 and 3 to your new employer and keep part 1A for your records

If you haven't received your P45 by the time your final pay arrives, chase your previous employer's payroll. Your new employer can use the starter checklist in the meantime.

Self-employed transitioning to PAYE

If you've been self-employed and now starting your first PAYE job: - You don't have a P45 from a previous PAYE job - Complete the starter checklist with Statement A, as long as you've had no PAYE job, taxable benefits or pension since 6 April - Your tax code is 1257L cumulative - Self-employment income for the same tax year is reported separately via Self Assessment

The PAYE income and self-employment income are reconciled annually in your SA return.

What to verify on your first payslip

  1. Tax code matches what you'd expect (1257L or one of the variants)
  2. Income tax deduction is reasonable for your salary
  3. NI is calculated correctly (8% of pay above £242 a week or £1,048 a month in 2026/27). NI is always worked out per pay period, so your tax code doesn't affect it
  4. Net pay matches your expected take-home

Use the tax code checker → for verification.

Practical checklist

  1. Provide your P45 to your new employer if you have one
  2. If no P45, complete the new-starter checklist accurately
  3. Check your first payslip for the tax code applied
  4. Run the code through the tax code checker to confirm deduction is right
  5. Wait 2-3 pay periods for the steady-state cumulative code
  6. If still on emergency at 8 weeks, action via Personal Tax Account
  7. Overpayment refunds automatically when cumulative code applies

In short

Your tax code in a new job depends on whether you provided a P45. With a P45 it's usually right from day one. Without one, your starter checklist answer sets 1257L, 1257L week 1/month 1, BR or (with no information) 0T until HMRC sends a code, usually within a few pay periods. Self-corrects automatically; any overpayment refunds via PAYE. For broader context see emergency tax → and tax codes hub →.

Frequently asked questions

I gave my P45 to my new employer. What code will I get?

Usually the code shown on the P45, typically 1257L. If the P45 shows the code on a week 1/month 1 basis, the new employer continues on that basis. The P45 also carries your pay and tax to date, so the new employer can carry on the cumulative calculation.

I don't have a P45. What happens?

You fill in HMRC's starter checklist. Statement A (first job since 6 April, no taxable benefits or pension) gives 1257L on a cumulative basis. Statement B (this is now your only job, but you've had another job or taxable benefits since 6 April) gives 1257L on a week 1/month 1 basis. Statement C (you have another job or a State or occupational pension) gives BR.

How long until my tax code is right?

With a P45 it's usually right from the first payslip. On an emergency or BR code, HMRC typically sends your employer a new code within a few pay periods once it has matched your employment records. If you're still on a temporary code after about two months, check your details with HMRC.

Why is my new-job code 0T?

Usually because your employer had neither a P45 nor a completed starter checklist. Employers then use 0T on a week 1/month 1 basis, which gives no personal allowance. Complete the checklist, or update your details with HMRC, to get it replaced.

Will I be overtaxed in the first month?

On 1257L cumulative (Statement A) you'll usually pay less tax at first, because unused allowance from earlier in the year is applied. On a week 1/month 1 code you get one month's allowance each month, so you won't get a refund of earlier months' tax until HMRC switches you to cumulative. On BR or 0T you pay 20% on everything until the code is corrected, and the overpayment is then refunded through payroll.

What does the starter checklist actually ask?

Your personal details, then one of three statements (A, B or C) about other jobs, benefits and pensions since 6 April, plus questions about student and postgraduate loans so your employer can start the right repayments.

Related calculators

Related guides

  • UK tax codes — A complete UK tax code reference for 2026/27. Covers every letter and
  • Emergency tax — "Emergency tax" in the UK means you're on a non-cumulative tax
  • Tax code 1257L — Tax code 1257L is the standard UK tax code for 2026/27. The 1257
  • BR tax code — Tax code BR stands for Basic Rate. It tells your employer to tax
  • Tax code 0T — Tax code 0T applies no personal allowance — every pound is taxed at
  • Tax code W1 — W1 is the weekly emergency tax code suffix. Instead of cumulative
  • Tax code M1 — M1 (Month 1) is the monthly emergency tax code suffix. Each pay month
  • Tax code X — Tax code X is a non-cumulative emergency suffix — like W1 or M1, but
  • Emergency tax refund — After emergency tax (W1, M1, X, 0T), most refunds happen automatically
  • How to correct a tax code — Step-by-step guide to correcting a wrong UK tax code: confirm the
  • Why has my tax code changed — Twelve common reasons your UK tax code may have changed: started a new
  • Second job tax — UK second job is typically taxed at BR (20% on all earnings) because your personal allowance is used on your main job. If earnings on second job could exceed unused allowance, request a tax code split from HMRC.
  • How to read a payslip — A UK payslip has up to 20+ separate lines, each with a specific
  • No payslip — Your section 8 right to an itemised payslip on or before payday, and the steps if it's missing: written request, grievance, Acas, tribunal.

More on related topics

Related salary breakdowns

Glossary terms used on this page

Quick definitions for the key terms above.

  • Tax code — A short code on your payslip that tells your employer how much tax-free Personal Allowance to apply to your pay each period.
  • PAYE — The UK system through which employers deduct Income Tax and National Insurance from employees' pay before paying it to them.

Sources

Tax rates and thresholds come from GOV.UK, HMRC and gov.scot. Salary and other figures come from the organisations named below.

  1. GOV.UK — Rates and thresholds for employers 2026 to 2027 (emergency codes 1257L W1, M1, X)
  2. HMRC — Starter checklist (PDF)
  3. LITRG — Starter checklist: which statement to tick
  4. BrightPay — Tax codes to use for new employees (0T week 1/month 1 when no information)
  5. HMRC — CWG2 further guide to PAYE and National Insurance contributions
  6. GOV.UK — Check if the tax on your payslip is correct

All tax figures on this page use the same configuration that powers our calculators — see our editorial standards for the review process.

Last reviewed: 27 October 2026. Next review due 27 April 2027.
Recent changes: Reviewed 27 Oct 2026: starter checklist statements corrected (Statement B gives 1257L week 1/month 1, not cumulative; no information gives 0T week 1/month 1), Statement A worked example recalculated (about £374 a month once the allowance is used up, £986 for the year), BR example now shows the refund due, P45 timing corrected and meta description fixed.

Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.