HMRC alert for UK workers on three tax codes as thousands warned

A warning has been issued for UK employees who find themselves assigned three different tax codes (Image: Witthaya Prasongsin via Getty Images)

A warning has been issued for UK employees who find themselves assigned three different tax codes. The Labour administration states that the most prevalent code for individuals holding a single position or receiving a pension is currently '1257L'.

The 'L' designation within this code signifies eligibility for the standard tax-free Personal Allowance - representing the annual earnings threshold before tax liability begins. This figure presently sits at £12,570, hence the '1257L' coding system.

However, certain wage slips might show tax codes such as 'W1', 'M1', or 'X'. These generally denote 'emergency circumstances' which arise during situat