Understanding what tax code 1263L means

Last reviewed June 2025

Your tax code is a string of numbers and letters that tells your employer how your pay should be taxed through the PAYE system. You get a tax code for each of your PAYE employments, so if you’ve got more than one job then the codes won’t be the same. Crucially, your tax code tells HMRC and your employer what tax-free Personal Allowance you qualify for. A good example of this is the 1263L tax code.

A 1263L tax code means that you’ve got a slightly higher Personal Allowance than most people. In real terms, you’re able to earn a little more in each tax year before you start to pay Income Tax. This is obviously good news for you, as long as the 1263L tax code matches your circumstances.

So what does a 1263L tax code actually mean? Well, the L at the end simply means there are no other special circumstances to consider when HMRC decides how your pay is taxed for this job. The numbers before the L refer to your tax-free Personal Allowance.

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 for your costs. One of the ways of doing this is with a ‘flat rate expense’ of £60 per year. Flat rate expenses are based on HMRC's assessment of what your yearly work costs are likely to be. They're generally a simplifier way of getting the tax relief you're owed, without the hassle of keeping precise records of your spending.

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.

Why should I check my 1263L tax code?

Here's an important tip about the 1263L tax code. If you're not paying for the day-to-day work expenses of cleaning a work uniform, you probably shouldn't be on it. Having 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.

Whether you've got an X, K, W in your tax code or something looks wrong, check the summary table on our Tax Codes Explained page to learn more.

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.

Remember, if you're claiming your yearly tax refunds with RIFT, we've got you covered for any tax code problems that crop up. 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.

Why was I given tax code 1263L

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

Get the ball rolling with your tax refund claim

Why should I check my 1263L tax code?

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

Understanding what tax code 1263L means​

Why was I given tax code 1263L

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

Get the ball rolling with your tax refund claim

Why should I check my 1263L tax code?

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

Understanding what tax code 1263L means