Common UK tax codes:
• 1257L - Standard personal allowance (£12,570 for 2024/25)
• BR - Basic rate (20%) applied to all income
• D0 - Higher rate (40%) applied to all income
• D1 - Additional rate (45%) applied to all income
• 0T - No personal allowance available
Understanding the 60% Tax Trap:
Income between £100,000-£125,140: Personal allowance reduces by £1 for every £2 earned above £100k, creating an effective marginal tax rate of 60%+ when combined with income tax and National Insurance.
Pension Contributions & Salary Sacrifice:
Employee contributions reduce your taxable income before tax and National Insurance calculations, maximizing your take-home pay and pension savings.
Interactive Features: Hover over the chart to see detailed breakdown including Income Tax, National Insurance, pension contributions and take-home pay for any income level up to £300k.