Many UK workers are starting to receive updated tax code notices from HMRC this May, and for some people, the changes could affect their monthly salary. These letters are part of HMRC’s yearly review of PAYE records to make sure employees are paying the correct amount of tax. While most people may only notice small adjustments, others could see larger changes linked to work expenses, pension income, or previous tax relief claims. Understanding these updates now can help workers avoid unexpected deductions later in the year.
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HMRC Tax Code Letters May 2026
HMRC Tax Code Letters May 2026 are mainly focused on checking whether employees and pensioners are using the correct tax code for the 2026/27 tax year. HMRC reviews information like salary, benefits, pensions, Gift Aid claims, and employment expenses before sending updated coding notices. If the details on record have changed, the tax code may also change. For many workers, the standard code will still be 1257L, but others may receive different letters depending on their income or tax history. These notices are important because even a small coding error can affect take-home pay throughout the year. Checking the information early gives workers enough time to contact HMRC and request corrections if needed.
Why HMRC Is Sending New Tax Code Letters
Every new tax year, HMRC reviews employee records to make sure tax deductions are accurate. This year’s updates are receiving more attention because some long-standing tax reliefs are being removed automatically from PAYE tax codes.
In many cases, workers previously claimed relief for job-related expenses such as uniforms, subscriptions, or professional memberships. HMRC is now removing some of these adjustments where records appear outdated or unsupported.
The department is also reviewing older Gift Aid claims that have stayed unchanged for several years. If there is no recent evidence supporting the claim, the allowance may disappear from the tax code until updated details are provided.
What the Tax Code Numbers and Letters Mean
A tax code may look confusing at first, but it simply tells employers how much tax-free income an employee can receive before deductions begin.
For most workers, the standard code remains 1257L. The number represents the Personal Allowance of £12,570, while the letter “L” shows the employee qualifies for the regular allowance.
Other common tax codes include:
- BR for income taxed at the basic rate
- D0 for higher-rate tax
- 0T for people with no Personal Allowance applied
- S1257L for Scottish taxpayers
- C1257L for Welsh taxpayers
Emergency tax codes can also appear temporarily when HMRC does not yet have complete payroll information.
Changes to Employment Expense Relief
One of the biggest updates this year involves employment expense claims.
Many employees previously received tax relief directly through their PAYE code for costs linked to their job. This included uniforms, tools, mileage, and professional fees. HMRC is now reviewing those claims more closely.
If a claim has not been updated recently or no longer matches HMRC records, it may be removed from the employee’s tax code automatically. As a result, some workers could notice slightly higher tax deductions from their salary.
Employees who still qualify for the relief can contact HMRC and submit updated information to restore the adjustment.
Gift Aid Relief Adjustments in 2026
Higher-rate taxpayers may also notice changes connected to charitable donations.
In previous years, many people received higher-rate Gift Aid relief through their PAYE tax code. HMRC has now started reviewing older claims that have stayed unchanged for several tax years.
If the system cannot confirm the relief still applies, it may be removed temporarily. This does not mean the taxpayer loses the benefit forever. Usually, HMRC simply requires updated records or a recent Self Assessment return before adding the relief back into the code.
Workers who regularly donate to charity should carefully check whether these adjustments still appear on their coding notice.
What Workers Should Check in Their Letter
Employees often ignore HMRC letters because the codes seem technical, but checking the details carefully is important.
Workers should confirm that the employer name is correct and review any listed benefits, pensions, or adjustments. It’s also worth checking whether old underpayments or estimated income figures have been included accurately.
Mistakes can happen when someone changes jobs, starts a second income source, or receives new workplace benefits. If incorrect information stays on the system for too long, workers may end up paying too much or too little tax.
Contacting HMRC early usually makes the correction process much easier.
Emergency Tax Codes Still Apply
Some employees starting a new job this year may still receive an emergency tax code. This usually happens when payroll teams have not yet received a P45 or updated employee information.
Common emergency codes for 2026/27 include:
- 1257L W1
- 1257L M1
- 1257L X
These temporary codes can sometimes lead to incorrect tax deductions for a short period. Once HMRC receives the correct details, the tax code is normally updated automatically through payroll.
Workers should keep an eye on their payslips if they recently changed jobs or returned to work after a break.
Employers Are Being Asked to Review PAYE Notices
HMRC is not only contacting employees. Employers are also receiving updated PAYE coding notices throughout the year.
Payroll departments must apply the latest tax codes quickly to avoid incorrect deductions. HMRC has warned businesses that additional updates may continue during 2026 as new taxpayer information becomes available.
This means some workers could receive more than one coding notice during the year, especially if their income or benefits change.
Standard Personal Allowance Remains Frozen
The Personal Allowance for the 2026/27 tax year remains frozen at £12,570. Because of this, the standard 1257L code continues for most employees across the UK.
However, higher earners may still lose part of their allowance once income goes above £100,000. People earning over £125,140 generally do not receive a Personal Allowance at all.
This is why some higher-income workers may notice completely different tax codes in their latest HMRC letter.
How to Correct a Wrong Tax Code
If a worker believes their tax code is incorrect, the best step is to contact HMRC directly.
Employees can review their tax details through the HMRC online account, payslips, P60 forms, or coding notices. After checking the information, HMRC can issue an updated code electronically to the employer.
It’s important not to ignore possible errors. Even small coding mistakes can affect monthly income over an entire tax year.
