Tax Code N Explained
An N at the end of your tax code means you've transferred 10% of your Personal Allowance (£1,260) to your spouse or civil partner under Marriage Allowance. In 2026/27 the usual code is 1131N, meaning £11,310 tax-free (£12,570 − £1,260).
Tax-free allowance implied by this code: £11,310 a year (£942.50 a month).
How your pay is taxed on N
Example (England, £30,000, 1131N): (£30,000 − £11,310) × 20% = £3,738 a year, about £311.50 a month – £21 a month more than 1257L. That only makes sense if your income is under the £12,570 allowance, so you weren't using all of it. If you earn £30,000, the transfer costs you as much as your partner gains, and you should consider cancelling it.
| Income tax with this code | £3,486 |
| Income tax with standard 1257L | £3,486 |
| Difference per month | £0.00 |
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Why you might have this code
- You applied for Marriage Allowance, giving £1,260 of your allowance to your spouse or civil partner.
- You typically earn less than £12,570, so the transferred allowance would otherwise be unused.
What to do
- Check the code HMRC holds for you in your personal tax account (GOV.UK sign-in) or the HMRC app – it also shows how the number was worked out.
- Compare it with the code on your latest payslip. If they differ, ask payroll whether they have applied HMRC’s latest notice.
- If your income has risen above £12,570, the transfer may no longer save your household money – you can cancel it.
- If you separate or your partner dies, tell HMRC.
See all tax codes or check your take-home with the UK salary calculator.
The household sum behind 1131N
An N code is only worth having if it saves the household money overall. GOV.UK’s own example: you earn £11,500 and your partner earns £20,000. After the transfer, your allowance falls to £11,310, so you pay tax on £190 – £38. Your partner saves £252. Together you’re £214 better off.
The table shows the same sum at other incomes for the partner giving up the allowance. The closer your income gets to the full £12,570, the more of the £252 is cancelled out by tax you start paying yourself. To be eligible, your income must normally be below your Personal Allowance.
| Your income (N code) | Extra tax you pay | Partner’s saving | Household gain |
|---|---|---|---|
| £8,000 | £0 | £252 | £252 |
| £11,500 | £38 | £252 | £214 |
| £12,200 | £178 | £252 | £74 |
Why an N appears on a pension or part-time job
Your N code applies to whatever PAYE income you have – a small workplace pension, a part-time job or a few hours of casual work. If your income later rises above your allowance, the transfer stops being worthwhile and you’re no longer eligible, so it should be cancelled. If you don’t have a PAYE income at all, you won’t see an N code, but the transfer still applies.
Self Assessment and the N
If you send a tax return, you claim Marriage Allowance by completing the Marriage Allowance section if you’re the one transferring it. If you both file returns, the transferor’s return should go in at least 3 days before the recipient’s.
If your code already ends in N (and your partner’s in M), GOV.UK says you don’t need to complete that section, because the transfer continues automatically each year.
Cancelling, separating and bereavement
- You must cancel if you divorce, dissolve a civil partnership or legally separate, if your income changes so you’re no longer eligible, or if you simply don’t want to claim any more.
- If the relationship has ended, either of you can cancel. Otherwise, only the person who made the claim can.
- If your partner has died since 5 April 2022, you can still make a claim by phoning the Income Tax helpline.
Who should make the claim
GOV.UK says that if neither of you has any income other than wages, the lower earner should make the claim. If either of you has other income, such as dividends or savings interest, it may not be obvious who should claim, and HMRC suggests calling the Income Tax helpline.
If either of you was born before 6 April 1935, Married Couple’s Allowance may be worth more, and you can’t have both.
What changes on your payslip with 1131N
On 1131N payroll gives about £943.25 a month of tax-free pay instead of £1,048.25. If you earn £900 a month, you pay no tax under either code. At £1,000 a month (£12,000 a year) you start paying a little under 1131N – £138 over the year – while your partner still saves £252.
When the transfer stops paying
Once your income goes above £12,570, the transfer no longer helps. At £14,000 on 1131N you pay £252 more tax and your partner saves £252 – no gain for the household. You’re also no longer eligible, so cancel. GOV.UK says that when you cancel because your income changed, the allowance keeps running until 5 April, so your code returns to 1257L from the next tax year.
Frequently asked questions
What does 1131N mean?
£11,310 tax-free in 2026/27, because £1,260 of your allowance goes to your partner.
Should I have an N code on a £30,000 salary?
Usually not beneficial: you lose £252 of tax-free value and your partner gains £252. It helps only when you can't use your full allowance.
How do I cancel Marriage Allowance?
Through your personal tax account or by contacting HMRC. Cancellation normally takes effect from the end of the tax year.
Who has the M code?
Your partner, usually 1383M.
I earn £11,500. Is the N code worth it?
Yes. You pay £38 of tax, your partner saves £252, and the household is £214 better off.
We live together but aren’t married. Can I transfer my allowance?
No. Marriage Allowance is only for married couples and civil partners.
We both file Self Assessment. Who fills in the Marriage Allowance section?
Only the person transferring the allowance. Their return should be filed at least 3 days before their partner’s.
How long does the transfer take to show in our codes?
GOV.UK says the partner receiving the allowance may wait up to 2 months for their tax code to change. The change is backdated to 6 April, so payroll catches up once the new code arrives.
Do I lose anything by transferring if I pay no tax?
No. If your income stays under £11,310, the £1,260 you transfer is allowance you wouldn’t have used, so your partner saves up to £252 at no cost to you.
Can I transfer my allowance to a partner who lives abroad?
Living abroad doesn’t stop a Marriage Allowance claim, as long as you get a UK Personal Allowance and the other conditions are met.
What if my partner becomes a higher-rate taxpayer?
They can no longer receive the allowance, so the claim must be cancelled. The transfer runs to 5 April, and your code goes back to 1257L from the next tax year.
Can an N code be on a pension?
Yes. If your only PAYE income is a small pension, that pension carries the N code.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.