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How the X Tax Code Affects Your Take-Home Pay The biggest impact is simple: you lose the benefit of your cumulative code and tax code-free personal allowance. Real Example (Income Tax UK 2024/25): Salary: £30,000/year (£2,500/month) Correct code (1257L): → No tax in early months until allowance used X code (1257LX): → HMRC taxes you each month as if you’re earning for the first time → £150–£350 more tax deducted in the early months


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