What does the emergency tax code mean?
Answered 11 March 2026
What is the Emergency Tax Code?
What the law says
Under the PAYE regulations, when a new employee has no Form P45 and indicates that the job is their only or main job, the employer must deduct tax using the emergency code on a cumulative basis from the first relevant payment.
Where the employee indicates they have another job or pension (i.e., the statement in paragraph 41(b) of Schedule A1 applies), the employer must instead deduct tax on a non-cumulative (Week 1/Month 1) basis using the emergency code. The employer must continue using the emergency code on subsequent payments until HMRC issues a proper tax code.
HMRC Guidance / Practice
What the code looks like: The emergency tax code is a number followed by the suffix "L". The number represents the Personal Allowance without its final digit — for example, the emergency code for 2019-20 was 1250L.
When employers use it: An employer uses the emergency code in the following circumstances:
- For new employees whose pay is above the PAYE threshold, who produce no Form P45 when starting the job, and who declare on the starter information that it is their only or main job
- For employees for whom no code notice has been received
- In certain special cases, e.g. when a P45 produced after 24 May relates to the preceding tax year
It can be used on either a cumulative or non-cumulative (Week 1/Month 1) basis.
Geographic scope: The same emergency code applies to everyone in the UK, regardless of residency status. Importantly, the emergency code is always an England and Northern Ireland code — employers never apply a Scottish ('S' prefix) or Welsh ('C' prefix) code unless they have received a P45 from the employee or a P6/P9 from HMRC.
DWP context: Where a claimant does not have a Form P45, the DWP also records the emergency code. Scottish and Welsh customers will receive the standard emergency code in these cases (i.e., with no S or C prefix).
Citation sources
The emergency tax code is a number followed by suffix L. The number is the Personal allowance without the final figure for example the emergency code for 2019-20 is 1250L. The emergency code can be used on a cumulative or non-cumulative basis (week 1 or month 1). The employer uses the emergency code:- For new employees whose pay is above the PAYE threshold And Who produce no form P45 when they start in the job And Who declare on from P46 / Starter information that the job is their only or main j
From the 6 April 2019 the Welsh Government has been able to set their own rates of income tax. Where Welsh Income Tax applies it will include a ‘C’ Prefix to the tax code, for example, C1100L, CBR, C0T. The ‘C’ prefix does not apply to Code NT cases. Code NT is used for all of the UK (England, Wales and Northern Ireland and Scotland). Further information is given at PAYE100040 When an employer uses the emergency tax code, it is always an England and Northern Ireland code. The employer never give
From the 6 April 2016 the Scottish Government has been able to set their own rates of income tax. Where Scottish Income Tax applies it will include an ‘S’ Prefix to the tax code, for example, S1100L, SBR, S0T. The ‘S’ prefix does not apply to Code NT cases. Code NT is used for all of the UK (England, Wales, Northern Ireland and Scotland). Further information is given at PAYE100035 When an employer uses the emergency tax code, it is always an England or Northern Ireland code. The employer never g
ulative basis using the emergency code. 3 On making any subsequent relevant payment before HMRC issue a code for use in respect of the employee, the employer must continue to deduct or repay tax on the cumulative basis using the emergency code. Procedure where no Form P45 and: (a) employee is not a seconded expatriate and paragraph 41(b) of Schedule A1 applies; or (b) employee is a seconded expatriate and paragraph 43(b) or 43(c) of Schedule A1 applies 49D 1 This regulation applies where— a the
hedule A1 applies; or (b) employee is a seconded expatriate and paragraph 43(b) or 43(c) of Schedule A1 applies 49D 1 This regulation applies where— a the employee is not a seconded expatriate and has indicated in accordance with regulation 40A(1) that the statement in paragraph 41(b) of Schedule A1 is correct, or b the employee is a seconded expatriate to whom regulation 49C does not apply and has indicated in accordance with regulation 40A(1) that the statement in paragraph 43(b) or 43(c) of S
In certain cases DWP will record for their use a different code from that shown on the P45. A cumulative code will be converted to Week 1 or Month 1 where Either Part 2 or 3 of form P45 is missing Parts 2 and 3 of form P45 are not identical Form P45 does not relate to the employment which came immediately before the benefit claim The claimant is an occupational pensioner The pay, tax or week / month number details on form P45 are either omitted or unreadable Form P45 shows code BR, SBR or CBR An