Emergency Tax on £1000: How Much Is Deducted and How to Get a Refund?

If someone receives £1,000 as a monthly payment and their tax code is 1257L M1, they may pay £0 Income Tax on that payment. For the 2026/27 tax year, the basic Personal Allowance is £12,570, and the monthly PAYE threshold is £1,048, so a £1,000 monthly payment can fall below the taxable amount.

However, the amount deducted depends on the tax code and the type of payment received. If the code is BR, the full £1,000 is usually taxed at the basic rate, so around £200 could be deducted. If the code is 0T, no Personal Allowance is applied, so tax may also be taken from the full payment.

Emergency tax can also work differently if the £1,000 is a pension withdrawal rather than wages. If a payslip or pension statement shows W1, M1, X or NONCUM, it usually means the tax is being worked out on an emergency basis for that pay period only.

So, the simple answer is: someone may pay no Income Tax on £1,000 under 1257L M1, but they could pay around £200 or more if a different emergency tax code is used.

To be sure, they should check the payslip or pension statement, look at the tax code, and contact HMRC if the deduction looks wrong.

Key Takeaways:

• Emergency tax on £1000 may be £0 Income Tax if the payment is monthly and taxed under 1257L M1.
• For the 2026/27 tax year, the monthly PAYE threshold is £1,048, so a £1,000 monthly payment can fall below the taxable amount.
• If the tax code is BR, around £200 could be deducted from a £1,000 payment.
• If the tax code is 0T, no Personal Allowance is applied, so tax may be taken from the full payment.
• Pension withdrawals can be taxed differently from wages because providers may use emergency month 1 rules.
• If too much emergency tax is deducted, it may be corrected through payroll, HMRC, or a pension refund form.
• The right refund route depends on whether the payment was wages, pension income, or a flexible pension withdrawal.

Last updated: 10 July 2026

Author’s note: This guide is written for UK readers who want a plain-English explanation of emergency tax on £1,000. It is general information, not personal tax advice. My exact tax position may depend on my tax code, income type, pension withdrawals, benefits, previous earnings and where I live in the UK.

What Does Emergency Tax Mean for Me?

Emergency tax is a temporary PAYE tax calculation. It is usually used when HMRC, my employer, or my pension provider does not yet have enough information to apply my correct tax code.

The word “emergency” can sound worrying, but it does not always mean something has gone badly wrong. In many cases, it simply means my income is being taxed using a temporary code until the correct information is available.

I might be put on an emergency tax code if I start a new job and my employer does not have my P45, if my starter checklist information is incomplete, if I take a flexible pension withdrawal, or if HMRC has not yet issued an updated tax code. GOV.UK says I may be put on an emergency tax code if I start a job and my new employer does not know my previous income details.

Emergency tax codes can end in W1, M1, X or show as NONCUM on a payslip, depending on the payroll software used. GOV.UK explains that W1 is used for weekly pay, M1 for monthly pay, and X for varying pay dates.

What Does 1257L M1 Mean on My Payslip?

If I see 1257L M1 on my payslip, it means my tax is being calculated using the standard Personal Allowance, but only on a month-by-month basis.

The 1257L part usually reflects the standard Personal Allowance. The M1 part means “month 1”. This means the PAYE calculation looks only at the current month instead of looking back over the full tax year.

For a £1,000 monthly payment, this matters because one month’s tax-free allowance can cover the payment. For 2026/27, GOV.UK states that the PAYE starting point is £1,048 per month, and the emergency code is 1257L for all employees.

So, if my taxable monthly pay is £1,000 and the code is 1257L M1, there may be no Income Tax to deduct. But if my code is different, or if the payment is not treated as normal monthly pay, the result may change.

How Is Emergency Tax on £1000 Worked Out?

A simple emergency tax on £1000 calculation depends on the tax code.

If my payment is monthly and taxed under 1257L M1, the rough calculation looks like this:

This is why the answer to “how much emergency tax will I pay on £1000?” can be nothing in a standard 1257L M1 monthly example.

But my actual deduction may be different if the payroll system uses another tax code. Here are two common examples.

These figures are simple examples. My final tax position can change if I live in Scotland, have other income, receive benefits in kind, owe tax from an earlier year, have pension income, or have a different tax code.

Emergency Tax on £1000 Wages vs Pension Withdrawal

The result can be different depending on whether the £1,000 is wages or a pension withdrawal.

If the £1,000 Is My First Wage

If I start a new job and receive my first monthly wage of £1,000, my employer may use an emergency tax code if they do not have my P45 or enough starter information.

If the code is 1257L M1, my £1,000 monthly wage may fall below the monthly PAYE threshold, so I may pay £0 Income Tax. However, I should still check my payslip carefully.

Emergency tax usually refers to Income Tax, while National Insurance is separate and may apply to wages depending on the rules and thresholds.

If the £1,000 Is My Pension Withdrawal

If the £1,000 is a flexible pension withdrawal, the position can feel less straightforward. Pension providers may apply emergency tax when they do not yet have my correct tax code.

For pension withdrawals, part of the payment may be tax-free and part may be taxable, depending on how I access my pension. In many flexible pension situations, providers tax the taxable part using emergency month 1 rules.

This can cause overpayments, especially on larger withdrawals. Aberdeen Adviser explains that single or ad-hoc pension payments are normally taxed on an emergency month 1 basis, and that HMRC forms can be used to reclaim overpaid tax on some payments.

For a £1,000 pension withdrawal, the deduction depends on how much of the payment is taxable and what tax code is applied. That is why I should check the pension statement rather than assuming the whole £1,000 has been treated the same as wages.

Common Tax Codes and What They Could Mean for My £1,000 Payment

My tax code is one of the most important clues when checking a £1000 emergency tax deduction.

GOV.UK says 1257L is an emergency tax code only if it is followed by W1, M1 or X. That means 1257L on its own is not always an emergency tax code.

How Do I Know If I Paid Too Much Emergency Tax?

To know whether I paid too much emergency tax, I need to check the details, not just the amount deducted.

First, I should look at my payslip or pension statement and find:

• my tax code
• the gross payment
• The tax deducted
• the payment date
• whether it was wages, pension income or a pension withdrawal
• any National Insurance deduction, if it was wages
• The taxable part of the pension payment, if it was a pension withdrawal

If my payslip shows 1257L M1 and my monthly taxable payment is £1,000, I would normally expect little or no Income Tax under the standard monthly allowance example.

If a large amount of tax has been deducted, I should check whether another code was used, whether the payment was treated differently, or whether I have other income affecting my tax position.

If my code is BR, 0T, D0 or D1, the deduction may be much higher. That does not automatically mean the deduction is wrong, but it does mean I should check why that code was used.

I can also use HMRC’s online services to estimate Income Tax and check my tax position. GOV.UK provides a service to estimate Income Tax for the current tax year.

How Can I Get an Emergency Tax Refund on £1000?

If I have paid too much emergency tax on £1,000, the refund route depends on the type of income.

If the payment was from employment, HMRC may issue a corrected tax code to my employer. My employer can then adjust my PAYE in a later payslip. If the overpayment is not corrected during the tax year, HMRC may check the position after the tax year ends.

If the payment was a pension withdrawal, I may need to use one of the HMRC pension tax refund forms. The right form depends on what I did with my pension.

GOV.UK says P55 is for claiming a refund in the current tax year when I have flexibly accessed part of my pension pot and overpaid tax. GOV.UK says P53Z can be used to claim back tax owed on a pension lump sum where I have flexibly accessed all of my pension. GOV.UK says P50Z may apply where I have emptied my pension pot, stopped work and do not expect to go back to work.

Before claiming, I should gather the information HMRC may need, such as my National Insurance number, pension provider details, employer PAYE reference if relevant, payslip or pension statement, tax code, P45 or P60 if available, and estimated income for the tax year.

Real-Life Examples of Emergency Tax on £1000

Example 1: I Receive £1,000 Monthly on 1257L M1

• I start a new job and receive my first monthly wage of £1,000. My payslip shows 1257L M1.
• Because the 2026/27 monthly PAYE threshold is £1,048, the £1,000 payment may be covered by the monthly allowance. In this example, I may pay £0 Income Tax.
• This is the simplest answer to “how much emergency tax will I pay on £1000?” when the payment is monthly and the standard emergency code is used.

Example 2: I Receive £1,000 on BR

• I receive £1,000, but my payslip shows BR.
• BR usually means the full payment is taxed at the basic rate. In a simple example, 20% of £1,000 is £200, so I could receive around £800 after Income Tax, before considering any other deductions.
• This is why two people can both receive £1,000 but have different emergency tax deductions.

Example 3: I Take a £1,000 Pension Withdrawal

• I take £1,000 from my pension. My provider does not yet have my confirmed tax code, so the taxable part of the withdrawal may be processed using emergency tax rules.
• If too much tax is deducted, I may be able to reclaim it using the correct HMRC route. The form I need depends on whether I took part of the pot, emptied the pot, or emptied the pot and stopped working.

What Should I Do Next If I Have Been Emergency Taxed?

The first thing I should do is check my tax code. I should look for codes such as 1257L M1, 1257L W1, 1257L X, NONCUM, BR, 0T, D0 or D1.

Next, I should confirm what type of payment it was. Wages, pension income and flexible pension withdrawals can be treated differently.

Then I should contact the right organisation:

If I am still unsure, I should check my HMRC personal tax account or speak to HMRC directly. If my situation is complicated, such as having several jobs, pensions, benefits, Self Assessment income, or Scottish tax status, it may be sensible to speak to a qualified tax adviser.

Conclusion: How Much Emergency Tax Will I Pay on £1000?

If I am asking “how much emergency tax will I pay on £1000?”, the answer may be £0 Income Tax if my £1,000 payment is monthly and taxed under 1257L M1. That is because the 2026/27 monthly PAYE threshold is £1,048, which is higher than £1,000.

But I should not assume every £1,000 payment is treated the same way. If my tax code is BR, I could pay around £200. If my code is 0T, my Personal Allowance may not be applied. If the money is a flexible pension withdrawal, the pension provider may use emergency month 1 rules, and I may need to check whether I have overpaid.

The safest next step is to check my tax code, payment type and tax deducted. If too much emergency tax has been taken, I may be able to get an emergency tax refund from HMRC through payroll correction or the correct pension refund form.

FAQs

Will I pay emergency tax on £1,000 if it is my first wage?

If my first wage is £1,000 for the month and my tax code is 1257L M1, I may pay £0 Income Tax, because the payment is below the 2026/27 monthly PAYE threshold of £1,048. However, I should still check my payslip because a different tax code, missing starter details or another job could change the deduction.

How much tax will I pay on £1,000 with a BR code?

If my tax code is BR, the full £1,000 is usually taxed at the basic rate. In a simple example, that means 20% of £1,000, so around £200 Income Tax could be deducted. My final take-home amount may also depend on other deductions.

What does 1257L M1 mean for my £1,000 payment?

1257L M1 means my tax is being calculated using the standard Personal Allowance on a month 1 basis. For a £1,000 monthly payment, this can mean no Income Tax is deducted because the payment may fall within one month’s tax-free allowance.

Can I get emergency tax back from HMRC?

Yes, if I have overpaid emergency tax, I may be able to get it back. If the overpayment is from employment, it may be corrected through payroll or after the tax year ends. If it is from a pension withdrawal, I may need to use an HMRC form such as P55, P53Z or P50Z, depending on my situation.

Why was my pension withdrawal emergency taxed?

My pension withdrawal may be emergency taxed because my pension provider did not yet have my correct tax code. Flexible pension withdrawals are often taxed using emergency month 1 rules, especially for first, single or ad-hoc payments. This can sometimes lead to too much tax being taken.

Which HMRC form should I use for a pension emergency tax refund?

The form depends on what I did with my pension. I may use P55 if I flexibly accessed part of my pension pot, P53Z if I flexibly accessed all of my pension pot, or P50Z if I emptied my pension pot and stopped working. I should check the GOV.UK guidance before choosing a form.

Is National Insurance included in emergency tax?

No, emergency tax usually refers to Income Tax under PAYE. National Insurance is separate. If the £1,000 is wages, National Insurance may be relevant depending on the rules and thresholds. If the £1,000 is a pension withdrawal, National Insurance usually does not apply.

Can I avoid emergency tax in the future?

I may reduce the chance of emergency tax by giving my employer the correct starter information, providing my P45 where available, checking my HMRC personal tax account, and making sure my pension provider has the correct details. However, flexible pension withdrawals can still be taxed on an emergency basis in some cases.

Editorial Note:

This article is for general UK tax information only and is not personal tax advice. Emergency tax can depend on the tax code used, the type of income received, previous earnings in the tax year, pension withdrawals, benefits, and whether the taxpayer lives in England, Scotland, Wales or Northern Ireland.

Readers should check their payslip, pension statement and HMRC personal tax account, and contact HMRC or a qualified tax adviser if they are unsure about their own situation.

Sources:

• GOV.UK – P9X tax codes to use from 6 April 2026
• GOV.UK – Emergency tax codes
• GOV.UK – Understanding your employees’ tax codes
• GOV.UK – What your tax code means
• GOV.UK –  Why your tax code might change
• GOV.UK – Claim back tax on a flexibly accessed pension overpayment P55
• GOV.UK – Claim a tax refund when you’ve flexibly accessed all of your pension P53Z
• Aberdeen Adviser Techzone – Pensions and emergency tax