Frequently asked questions
Quick answers about UK tax, pensions, ISAs and the rest.
What does tax code 1257L mean?
1257L is the standard UK tax code for 2026/27. The 1257 represents your tax-free personal allowance (£12,570); the L denotes the standard allowance. K-codes work the opposite way and add to your taxable income.
How much can I put in an ISA in 2026/27?
The annual ISA allowance is £20,000. You can split this across Cash, Stocks & Shares, Innovative Finance and Lifetime ISAs (max £4,000 of which can go into a Lifetime ISA).
When do I start paying National Insurance?
Class 1 NI for employees kicks in above the Primary Threshold of £12,570. Between £12,570 and £50,270 you pay 8%, then 2% above £50,270.
What's the difference between Plan 1, 2, 4, 5 and Postgraduate student loans?
They differ by start date and threshold. For 2026/27: Plan 1 (£26,065), Plan 2 (£28,470), Plan 4 — Scotland (£32,745), Plan 5 (£25,000) and Postgrad (£21,000). All charge 9% above the threshold except Postgrad at 6%.
Do Scottish taxpayers pay different income tax?
Yes — Scotland sets its own income tax rates (six bands from 19% to 48% for 2026/27). National Insurance is the same across the UK.
Is a higher pension contribution always worth it?
Usually — pension contributions get tax relief at your marginal rate. For higher-rate taxpayers (40%) every £100 of net pay can equal £166 in your pension. Don't forget the £60,000 annual allowance.
When do I pay stamp duty?
SDLT (England/NI) is due within 14 days of completion. LBTT in Scotland and LTT in Wales are due within 30 days. First-time buyers get relief in England and Scotland.