1152L Tax Code: What It Means and How It Affects Your Pay?

Understanding your tax code is crucial when it comes to managing your finances and knowing exactly what to expect from your monthly payslip.

One such tax code that often causes confusion is the 1152L tax code. This guide will walk through what this code means, why it’s assigned, and how it affects take-home pay for UK employees.

What Does The 1152L Tax Code Mean?

The 1152L tax code is a specific tax code issued by HMRC, representing a modified personal allowance.

This code indicates that the taxpayer is entitled to a reduced tax-free allowance of £11,520 instead of the standard £12,570 for the 2024/2025 tax year. The “L” suffix shows that the individual is entitled to the basic personal allowance.

This reduction in allowance typically arises from an adjustment by HMRC to collect tax on:

• Unpaid taxes from a previous year
• Benefits in kind (BiK), such as a company car or private medical insurance
• Interest income from savings not taxed at source
• Other forms of untaxed income

The difference between the standard and adjusted allowance is £1,050, which translates to £210 of tax owed over the year at the basic rate of 20%. HMRC collects this amount gradually through monthly payroll deductions.

How Does The 1152L Tax Code Affect Your Take-Home Pay?

Employees with the 1152L tax code have a smaller tax-free portion of their income. This results in slightly higher tax payments throughout the year compared to someone on the standard 1257L tax code.

The actual impact depends on the total annual income and how frequently the employee is paid.

Example of Taxable Income Impact

With the 1152L code, an additional £1,050 becomes taxable, resulting in roughly £210 more in tax paid annually, or around £17.50 per month.

This adjustment is not permanent and may be reviewed or reversed by HMRC once the owed tax is settled or other factors change.

Why Might Your Tax Code Be Adjusted To 1152L?

HMRC adjusts tax codes to reflect changes in an individual’s taxable income, benefits, or underpayments. The 1152L code is assigned when there is a need to recover small amounts of tax without issuing a separate bill.

Common Reasons for Adjustment

• Benefits in Kind: Such as company cars or health insurance
• Unpaid Tax: From previous tax years due to miscalculations or multiple income sources
• Untaxed Interest: From savings or investment income
• Job Change or Multiple Employments: Tax coding may be adjusted if PAYE records don’t fully align

Employees can view a breakdown of adjustments by logging into their HMRC Personal Tax Account, which details why and how their code was altered.

Is The 1152L Tax Code Better Or Worse Than 1257L?

Both the 1257L and 1152L tax codes fall under the category of standard UK tax codes, but they have different implications for your personal tax-free allowance.

The 1257L tax code is the standard code used for most UK taxpayers in the 2024/2025 tax year. It represents a £12,570 annual tax-free personal allowance.

On the other hand, 1152L is a modified version that reduces the tax-free allowance to £11,520, meaning the taxpayer will pay income tax on an additional £1,050 of their annual income.

This reduction usually happens when HMRC adjusts the tax code to collect underpaid tax, benefits in kind (like a company car), or income from savings and investments not taxed at source.

How Much More Tax Does 1152L Cost?

The 1152L tax code means you have £1,050 less tax-free income compared to the standard 1257L code. At the basic income tax rate of 20%, this results in an additional £210 of income tax per year.

That amount is typically collected evenly through your PAYE salary over 12 months, meaning your monthly take-home pay would decrease by around £17.50.

While not a huge financial burden, this small change can be noticeable over time, especially for those on a strict budget.

When Is 1152L Applied?

The 1152L tax code is applied in specific circumstances:

• HMRC needs to recover underpaid income tax
• You receive benefits in kind through your employer
• You have untaxed savings or investment income
• You owe tax from previous employment or freelance work

Once the owed amount is recovered, HMRC may return your code to the standard 1257L in the next tax year, or sooner if your financial situation changes and the balance has been cleared.

Is 1257L Always Better?

In terms of tax-free allowance, yes — 1257L is objectively better because it gives you more income that isn’t taxed. However, receiving a 1152L tax code doesn’t mean you’re being penalised unfairly.

Rather, it ensures tax collection is done gradually, without the need for large one-off payments or bills.

It’s also worth noting that a reduced tax code like 1152L may help avoid unexpected tax demands at the end of the financial year by spreading the recovery across your pay.

Summary Comparison Table:

Could 1152L Be An Emergency Tax Code?

The 1152L tax code is not generally considered an emergency tax code. Emergency tax codes typically arise when HMRC doesn’t have enough information to apply the correct code.

Emergency Codes Include:

• 1257L W1/M1 – Non-cumulative tax basis
• BR – All income taxed at basic rate
• 0T – No tax-free allowance applied

However, if 1152L appears with the suffix W1/M1, it suggests a non-cumulative code is being applied, possibly on a temporary basis. This version can lead to overpayment of tax until HMRC updates the code.

How Can You Verify If Your 1152L Tax Code Is Correct?

There are multiple ways to confirm whether the 1152L tax code applied to you is accurate. It’s important to verify regularly to avoid overpaying or underpaying tax.

How to Check:

• Payslip: Your tax code is typically printed near the top or within the PAYE section
• HMRC Personal Tax Account: Shows your active tax code and the reason behind any adjustments
• P60 or P45: Official year-end tax summaries showing income and tax paid

If the code seems inconsistent with your income or situation, HMRC provides tools online to check and request corrections.

What Should You Do If You Think Your Tax Code Is Wrong?

If you believe your 1152L code is incorrect, it’s essential to act quickly. Delaying could result in ongoing overpayments or underpayments, which HMRC will reconcile at the end of the tax year.

Steps to Take:

• Check your HMRC Personal Tax Account for any alerts or adjustments
• Contact your employer or payroll department to verify income records sent to HMRC
• Call HMRC on their helpline if you need to speak with an advisor
• Submit a correction online through the tax code dispute feature in your HMRC account

Keeping your employment and income details updated with HMRC helps prevent future errors or unexpected changes in tax codes.

How Do Tax Code Changes Like 1152L Impact UK Taxpayers Annually?

In the UK, tax codes are a central part of the Pay As You Earn (PAYE) system. They determine how much income tax is deducted from an employee’s salary before it reaches their bank account.

Tax codes like 1152L are tailored to reflect an individual’s tax-free allowance and any adjustments that HMRC deems necessary based on their personal tax situation.

Each year, HMRC updates tax codes to align with changes in personal circumstances, government policies, and broader economic factors.

Even small alterations, like moving from the standard 1257L to 1152L, can subtly affect an employee’s take-home pay over 12 months.

Annual HMRC Tax Code Updates

Tax code adjustments typically occur at the start of the new tax year in April. HMRC reviews financial data provided by employers, pension providers, and other sources to assess if a taxpayer’s code should remain the same or be modified.

Common reasons for tax code changes each year include:

• New employment or a change in jobs
• Updated information about benefits in kind (BiK)
• Unpaid tax from previous years being rolled into the new year
• Income from savings or investments
• Claiming or no longer claiming tax reliefs (e.g., marriage allowance)

For someone who moves to a 1152L tax code from 1257L, this means HMRC has recognised a tax liability—often in the region of £200–£300—that it wants to recover gradually rather than through a one-off bill.

Impact on Financial Planning

A change in tax code can have a direct impact on an employee’s monthly budgeting and savings. Even a small reduction in personal allowance, like the one shown by a switch to 1152L, leads to slightly higher tax deductions.

For example, if the personal allowance drops from £12,570 to £11,520, an additional £1,050 becomes taxable.

At the basic 20% income tax rate, this results in approximately £210 more tax paid annually, usually divided across monthly pay periods.

This change, while seemingly minor, could impact savings plans, direct debits, or discretionary spending. For individuals on tight budgets, every pound counts, so it’s essential to understand the implications early on.

Staying Informed and Proactive

HMRC sends tax code notices each year—either digitally via the personal tax account or physically by post.

It’s crucial that taxpayers check these notices for accuracy. Mistakes can happen, especially if income from multiple sources isn’t properly synchronised across HMRC systems.

To avoid unexpected deductions or underpayments, individuals should:

• Check their HMRC Personal Tax Account regularly
• Review their payslips for changes in tax deductions
• Contact HMRC if the tax code appears incorrect

Staying proactive ensures that any errors are corrected quickly and that tax is calculated fairly and accurately throughout the year.

Common UK Tax Codes Compared To 1152L

The 1152L code is among the less severe of adjustments and usually signals a small discrepancy rather than a significant tax issue.

Conclusion

The 1152L tax code represents a personal allowance slightly below the standard threshold, usually due to adjustments for unpaid taxes, benefits, or other income.

It is not an emergency code, but a way for HMRC to collect owed tax gradually.

Regularly reviewing your tax code, especially through the HMRC portal, ensures that you are paying the correct amount of tax and avoiding unexpected bills or underpayments.

Understanding your tax code empowers you to manage your income more effectively and gives you control over your financial well-being.

FAQs About the 1152L Tax Code

How often do HMRC change tax codes like 1152L?

HMRC typically updates tax codes at the start of each financial year, but changes can also occur during the year if your tax circumstances change.

Can the 1152L code apply to people with multiple jobs?

Yes, especially if the individual receives benefits or income from other jobs, prompting HMRC to adjust the main job’s code to collect additional tax.

Is 1152L always due to benefits in kind or unpaid taxes?

While that’s a common reason, it could also be due to forecasted savings interest or secondary income reported through your tax return.

What happens if you ignore a wrong tax code?

Ignoring an incorrect tax code could result in overpaying or underpaying tax. If underpaid, HMRC will collect the difference later, sometimes with interest.

How do I appeal or dispute my 1152L tax code?

Use your online personal tax account or contact HMRC directly by phone or post. Have your National Insurance number and employer details ready.

What’s the difference between 1152L and 1152L W1/M1?

W1/M1 means the tax is being calculated on a non-cumulative basis — often a temporary measure. Without W1/M1, the code is cumulative, meaning allowances are calculated year-to-date.

Will I get a refund if my code is corrected later in the year?

Yes, if your tax code was too harsh and you’re owed money, you’ll typically get a refund through your payslip or at the end of the tax year via HMRC.