Emergency tax: the jump scare
Lesson 7 of 16 in our free Work, Payslips & Tax guide: a 5-minute money game with the key points below.
This lesson is in the full version.
Free with a code from your uni, college, council, landlord or employer (worth £600/year). Lesson 1 of Work, Payslips & Tax is free for everyone.
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Questions you'll answer
On code BR, £1,500 gross = £300 tax. On 1257L, about £1,047.50 of the month is tax-free and the rest is taxed at 20%. Roughly how much tax was overpaid?
What's the RIGHT way to fix an emergency tax code?
Quick facts
- You started a new job without a P45 → Likely cause. Employer has no info from your last job.
- You started a second job mid-year → Likely cause. The new job usually gets BR or an emergency code until HMRC knows how to split your allowance.
- You didn't fill in the new starter checklist → Likely cause. Without it, your employer has to guess.
- Your boss doesn't like you → Not a cause. Tax codes come from HMRC, not workplace drama.
- You're paid by bank transfer instead of cash → Not a cause. Payment method has nothing to do with it.
- Myth: “Overpaid emergency tax is gone forever.” — Once the code is fixed it's usually refunded through your pay — or HMRC refunds it after the tax year.
- Fact: “A W1 or M1 code means each payday is taxed on its own.” — Non-cumulative codes don't catch up on earlier overpayments automatically.
- Fact: “You can check your current tax code in the HMRC app.” — Free, official, and much easier than calling.