With many people about to enjoy their first payday of the year following an expensive Christmas, it might be a good time to inspect your payslip. The Liverpool Echo says that all payslips should include an employee tax code, which indicates how much tax-free income they are entitled to in the tax year.
According to the Government's official website, the most common code is 1257L. This is used for most people with one job and no untaxed income, unpaid tax or taxable benefits (for example a company car).
Gov.uk explains: "You usually multiply the number in the tax code by 10 to get the total amount of income they can earn before being taxed." This means an employee with the most common tax code of 1257L can earn £12,570 before being taxed.
