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Last reviewed January 2023
| Quick answer: | An M1 tax code is like an emergency tax code. It should be temporary until HMRC has enough information to issue the right code. It's non-cumulative so it doesn't take into account any tax you've already paid in the tax year. |
Assuming you’re entitled to the standard tax-free Personal Allowance of £12,570, your M1 tax code will be 1257 M1. Because this is a non-cumulative code, the tax you owe in a month will be worked out only from what you made during that month. If you’ve already paid some tax in the year, or used up some of your Personal Allowance, that won’t be factored into how you’re being taxed now.
A M1 tax code can be painful if you’re on it incorrectly. Most of the time, HMRC will alter your tax code for you as your circumstances change. However, there are times when you might end up on the wrong tax code – and when that happens you need to get it fixed fast. It’s your responsibility to get the problem sorted, and things can get very tricky if you don’t.
If you think your tax code’s wrong, you need to contact HMRC to make sure they have the information they need to put it right. If you’re claiming a tax rebate with RIFT Tax Refunds, of course, we’ll check your tax code for you as part of the service. If you’re ever given the wrong code, we’ll get it corrected for you.
Find out more about how to change your tax code
Being on the wrong tax code can easily leave you paying the wrong amount of Income Tax on your earnings. For example, this can happen when:
Any of these situations can mean you’re paying too much Inc and might be able to claim a tax refund. Get in touch with RIFT to find out more about tax rebates, and to see how the UK’s leading experts can get back everything you’re owed.
Being on the wrong tax code can mean you're either paying too much or too little tax to HMRC. Here's what to do to fix it.
If you've got this tax code, you're in good company. This is the basic code that most people paying tax through the PAYE system will be on.
If you're on this code you're in an unusual position in that you aren't paying Income Tax at all on your earnings from this job.
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