Understanding what tax code 1263L means

Last reviewed May 2024

Your tax code tells your employer how your pay should be taxed through PAYE. Crucially, it tells them what tax-free Personal Allowance you qualify for. A good example of this is the 1263L tax code.

A 1263L tax code tells your employer that you’ve got a slightly higher Personal Allowance than most people. In real terms, it means you’re able to earn a little more in each tax year before you start to pay Income Tax.

To find out how much you can earn tax-free each year, check the number at the start of your tax code and multiply it by 10. For example, tax code 1263L means you can earn £12,630 before you start being taxed. That’s £60 higher than the standard UK tax code of 1257L.

Why was I given tax code 1263L

If you’ve got a 1263L tax code, the most likely reason is the day-to-day cost of doing your job. When you’re paying from your own pocket for the cost of washing your work uniform, for instance, HMRC lets you claim back some tax. One of the ways of doing this is with a ‘flat rate expense’ of £60 per year.

When you claim for your uniform upkeep like this, HMRC changes your tax code to 1263L. This adds £60 to your tax-free Personal Allowance.

How do I know what tax code I'm on?

There are several places where you can find your tax code. Here are some of the easiest options:

In your payslips or pension documents.
In any documents you’ve had from HMRC.
In your Personal Tax Account at HMRC, if you’ve got one.

Why should I check my 1263L tax code?

Being on the wrong tax code can be a serious headache, since it means you’re probably paying the wrong amount of tax. If you’ve been put on tax code 1263L and don’t know why, get in touch with HMRC straight away.

If something looks wrong with your tax code and you don’t know what it means, check the summary table on our Tax Codes Explained page .

HMRC Tax Codes Explained

Can I fix my 1263L tax code if it's wrong?

HMRC’s rules say it’s your own responsibility to make sure your tax code’s correct. If you’re on tax code 1263L but aren’t paying for maintaining your work uniform, it’s important to get your code checked as soon as possible.

The first thing to do is get in touch with HMRC to let them know there’s a problem. You can do this easily online if you’ve already signed up for a Personal Tax Account. Otherwise, check their contact page for other options.

RIFT will always check your tax code when we’re handling your yearly tax refunds. If it’s wrong, we’ll get it fixed at no extra charge as part of your year-round service.

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