Tax Code S1257L Explained
An S at the start of your tax code, such as S1257L, means your income is taxed using Scottish Income Tax rates. HMRC uses it if you live in Scotland. The number and suffix work the same way as elsewhere – S1257L gives the standard £12,570 tax-free allowance.
Tax-free allowance implied by this code: £12,570 a year (£1,047.50 a month).
How your pay is taxed on S1257L
Scottish bands for 2026/27: 19% starter (£12,571–£16,537), 20% basic (£16,538–£29,526), 21% intermediate (£29,527–£43,662), 42% higher (£43,663–£75,000), 45% advanced (£75,001–£125,140), 48% top (over £125,140). Example (£30,000 on S1257L): 19% × £3,967 = £753.73; 20% × £12,989 = £2,597.80; 21% × £474 = £99.54. Total £3,451.07 a year, about £287.59 a month – roughly £35 a year less than in England (£3,486). National Insurance is UK-wide: about £116.20 a month.
| Income tax with this code | £3,451 |
| Income tax with standard 1257L | £3,451 |
| Difference per month | £0.00 |
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Why you might have this code
- Your main home is in Scotland.
- HMRC has your Scottish address on record.
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 you live outside Scotland but have an S code (or live in Scotland without one), update your address with HMRC.
- Moved during the year? Your tax status follows where you lived for most of the tax year.
See all tax codes or check your take-home with the UK salary calculator.
How HMRC decides you’re a Scottish taxpayer
HMRC gives you an S prefix if your main home is in Scotland. It doesn’t matter where your employer is based. The status applies for the whole tax year – you can’t be a Scottish taxpayer for only part of a year.
- Main home: usually where you live and spend most of your time, whether you own it, rent it or live there for free. If you have homes in Scotland and elsewhere in the UK, you can contact HMRC to change which one counts as your main home.
- No main home (for example offshore workers or people living in hotels): count the days you spent in Scotland against the rest of the UK. Where you were at midnight decides where a day counts.
- Moving: you pay Scottish tax if you lived in Scotland longer than anywhere else in the UK during the tax year. Your tax is backdated to 6 April and adjusted automatically through your pay.
- Members of the Scottish Parliament can also pay Scottish Income Tax.
S1257L against 1257L at different salaries
With the 2026/27 bands, the 19% starter band saves a Scottish taxpayer up to £39.67 a year, but the 21% intermediate band claws that back. The two systems break even at about £33,500. Above that Scotland costs more, and the gap widens sharply once the 42% higher rate starts at £43,662 rather than £50,270. National Insurance is the same everywhere.
| Salary | Tax on S1257L | Tax on 1257L | Scotland pays |
|---|---|---|---|
| £20,000 | £1,446 | £1,486 | £40 less |
| £30,000 | £3,451 | £3,486 | £35 less |
| £40,000 | £5,551 | £5,486 | £65 more |
| £50,000 | £8,982 | £7,486 | £1,496 more |
| £60,000 | £13,182 | £11,432 | £1,750 more |
| £80,000 | £21,732 | £19,432 | £2,300 more |
Second jobs and Marriage Allowance in Scotland
Scotland has six bands, so a second job can be coded SBR (20%), SD0 (21%), SD1 (42%), SD2 (45%) or SD3 (48%). If your main job sits in the 19% starter band, HMRC codes the second job S0T so that it starts in the starter band too.
Marriage Allowance also works differently in Scotland. The partner receiving the allowance must pay tax at the starter, basic or intermediate rate, which usually means income of up to £43,662, not £50,270.
If the S is missing or shouldn’t be there
An S code (or a missing one) is almost always an address problem. Update your address with HMRC and the code changes for the whole year. Because your Scottish taxpayer status is backdated to 6 April, payroll adjusts the tax across the year, so a mid-year correction can mean a refund or a higher deduction on your next payslip.
Monthly band limits for S1257L
To check a Scottish payslip, compare your monthly gross pay with the 2026/27 limits below. They are the annual bands divided by 12, with the £12,570 allowance added. HMRC’s tables add up to £9 a year of extra free pay, so your payslip may be a few pence lower. Above £8,333.33 a month (£100,000 a year) your allowance starts to taper, so S1257L stops being the right code before the 48% top rate is reached.
| Scottish band | Rate | Monthly gross pay on S1257L |
|---|---|---|
| Starter | 19% | £1,047.50 to £1,378.08 |
| Basic | 20% | £1,378.08 to £2,460.50 |
| Intermediate | 21% | £2,460.50 to £3,638.50 |
| Higher | 42% | £3,638.50 to £6,250.00 |
| Advanced | 45% | over £6,250.00 |
Frequently asked questions
Does working in Scotland give me an S code?
No – it depends on where you live, not where you work.
What do SBR, SD0, SD1, SD2 and SD3 mean?
All income taxed at a single Scottish rate: SBR 20%, SD0 21%, SD1 42%, SD2 45%, SD3 48%.
Is S1257L an emergency code?
No, not unless W1, M1 or X follows it.
Do Scottish rates apply to savings and dividends?
No. Scottish rates apply to earnings and pensions; savings and dividend income use UK rates.
I moved to Scotland in October. Will I get an S code this year?
Only if you’ll have lived in Scotland longer than anywhere else in the UK during the tax year. If you will, the Scottish rates are backdated to 6 April. If not, you become a Scottish taxpayer from the next tax year.
I work offshore and have no fixed home. Am I a Scottish taxpayer?
Count the days you spend in Scotland against the rest of the UK, using where you were at midnight. If Scotland has more days, you’re a Scottish taxpayer for the whole year.
Why is my second Scottish job coded S0T instead of SBR?
Because your main job is still in the 19% starter band. S0T lets the second job use the rest of the starter band before moving up the Scottish bands.
Does S1257L give the same allowance as 1257L?
Yes – £12,570. The S changes only the rates and bands applied to pay above the allowance.
Do pensions get an S code too?
Yes. If you live in Scotland, every code for a job or pension you hold starts with S, so your pension provider deducts tax at Scottish rates.
I moved from Scotland to England this year. When does the S stop?
It depends where you lived longest during the tax year. If that was England, HMRC removes the S and backdates the change to 6 April, and payroll adjusts your tax across the year.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- GOV.UK – Scottish Income Tax
- GOV.UK – What your tax code means
- GOV.UK – Income Tax in Scotland (full guide, including main home and day-count rules)
- GOV.UK – Scottish Income Tax: if you move to or from Scotland
- HMRC PAYE Manual PAYE13145: Scottish income tax / Welsh income tax
- HMRC PAYE Manual PAYE11055: special codes for secondary sources
- HMRC PAYE Manual PAYE13097: starter rate individuals
- GOV.UK – Marriage Allowance (full guide)