UK tax codes confuse almost everyone — but for foreign workers, they cause real panic.
People see letters and numbers on their payslip and think:
- “I’m being taxed more because I’m foreign”
- “My employer has messed this up”
- “I’m losing money every month”
In reality, UK tax codes follow strict rules, and once you understand them, most pay problems suddenly make sense.
This guide explains UK tax codes in plain English, specifically for foreign workers starting or changing jobs.
What Is a UK Tax Code?
A tax code tells your employer:
- How much tax to deduct from your pay
- Whether you have a tax-free allowance
- How your income should be taxed
Your employer does not choose your tax code — HMRC does.
The Most Common UK Tax Codes (You Will See These)
1257L – The “Normal” Tax Code
This is the standard tax code for most workers.
It means:
- You get the full tax-free personal allowance
- Tax is calculated normally
- Your pay is usually correct
Most foreign workers end up on 1257L once everything is settled.
BR – Basic Rate Tax Code
This is very common for:
- Second jobs
- New arrivals
- Temporary work
It means:
- All income is taxed at basic rate
- No tax-free allowance is applied
This is not permanent for most people.
0T – No Allowance Applied
This tax code means:
- You have no personal allowance applied yet
- All income is taxed
This often appears:
- When HMRC lacks information
- When starting your first UK job
- When changing jobs quickly
1257 W1 / M1 – Emergency Tax Codes
These are emergency tax codes.
They mean:
- Your tax is calculated week-by-week or month-by-month
- Past income is ignored
- Refunds may come later
Foreign workers see these a lot in their first months.
Why Foreign Workers Often Get the “Wrong” Tax Code
Foreign workers are more likely to get temporary tax codes because:
- HMRC has no previous UK employment history
- You’ve just arrived in the UK
- You changed jobs quickly
- Payroll details were delayed
This is a system issue, not discrimination.
How Tax Codes Affect Your Take-Home Pay
Different tax codes can change your pay by hundreds of pounds.
For example:
- Being on BR instead of 1257L can reduce pay significantly
- Emergency codes can cause short-term over-taxing
- Second jobs are often taxed more heavily at first
Most of this corrects itself automatically once HMRC updates your record.
How to Check Your UK Tax Code
You can find your tax code on:
- Your payslip
- Your P60 or P45
- HMRC correspondence
If you don’t understand it, don’t ignore it — it directly affects your money.
How to Fix an Incorrect Tax Code
If your tax code looks wrong:
- Make sure your employer has your correct details
- Check HMRC records
- Update your employment information if needed
Once corrected:
- Your pay usually increases
- Overpaid tax is refunded
- Future payslips stabilise
Will You Get Overpaid Tax Back?
Yes.
If you overpay tax because of:
- Emergency tax
- Incorrect tax code
- Job changes
HMRC refunds it:
- Through future payslips, or
- As a direct payment
This is routine and legal.
Final Honest Advice
UK tax codes look intimidating, but they follow rules — not opinions.
If you’re a foreign worker:
- Temporary tax codes are common
- Lower first pay is normal
- Most issues fix themselves within weeks
Understanding your tax code puts control back in your hands.
You may also find these related guides useful
15 UK Jobs That Don’t Require UK Work Experience (For Foreigners)
15 Easiest Jobs for Foreigners to Get in the UK (2025 Guide)
Top 10 No-Experience Jobs in the UK (2025 Guide)
How to Write a UK CV in 2025: Simple Guide With Real Examples