Secret of 1263L Tax Code – What You Need to Know?

HMRC just contacted you to inform you that your tax code has changed. This can be a dreading feeling and anxious question for every taxpayer in the UK. You might start thinking, “Do I owe more tax to HMRC? Or has my tax-free Personal Allowance decreased?”

It’s not always terrifying, but it can be good news for taxpayers. Your allowance could increase, and you will earn more money and then have to pay taxes. So here comes the 1263L tax code – your little tax saver.

Quickly find what you need—just click the links below.

• Where You Will Find the Tax Code?
• If My Tax is 1263L, What Does It Mean?
• What about tax code 1257L?
• Why is my tax code converted to 1263L?
• What is the process of applying for the 1263L tax code?
• Can I Change my 1263L Tax Code?

Where You Will Find the Tax Code?

Knowing where to get your code is good before you delve deeper into the 1263L tax code. This is especially important to ensure you get the right one. Your tax code is the identity of your employer, where he can understand what income tax he should deduct from your wages. You can get your tax code through

1- Check your payslip, and you will find your tax code.
2- Log into your Personal HMRC tax account (Get your government gateway ID and password to log in).
3- Check your HMRC app for tax code
4- Check your P60 and P45 form

If you can’t find a way to learn your tax code, you can call HMRC directly and ask them about your query. If you are newly employed or have hired a new person, it is better to check the tax code daily if you use an emergency code. That code means you will be taxed 20% on all income until HMRC gives you the correct details about your earnings and the tax you have paid.

If My Tax Code is 1263L, What Does It Mean?

As previously discussed, 1263L is a good tax code. That means you are now relaxed and do not have to pay taxes to HMRC. The good news is your tax-free personal allowance has increased.

What about tax code 1257L?

You might be familiar with the tax code 1257L, which correlates to the tax-free personal allowance of £12570. This also refers to the fact that you earn up to £12570 in a tax year

You’re probably familiar with the standard tax code, 1257L, based on the tax-free personal allowance of £12,570. This means earning up to £12,570 in a tax year before paying income tax.

Your 1263L tax code is also similar to the 1257L tax code but slightly different in earnings. In this tax code, you have earned almost 1263L, which will save you £60!

Why is my tax code converted to 1263L?

Your tax code can change to 1263L if you are eligible for HMRC’s flat rate expenses for the cost and maintenance of your work uniform. It also means you will get less tax to keep your uniform well-maintained to wear at work. If this is not the case, you must pay other types of allowable expenses.

What is the process of applying for the 1263L tax code?

Usually, you will apply to HMRC via a P87 form for washing of Uniform Allowance. After approval of your application, you will get a confirmation code from HMRC about changing your tax code.

You don’t have to repeat the process every year, as your tax code will remain the same unless you contact HMRC and tell them you don’t need allowable expenses each year. So, they will change your tax code if they find any reason for you to no longer need any allowances or start a job with a new employer.

Can I Change my 1263L Tax Code?

If circumstances change, you can change your tax code by contacting HMRC online or by phone. Keeping HMRC informed about everything is essential, as it will help you pay the right taxes in the long run.