0T Tax Code
0T Tax Code Meaning, Rates & Refunds
What does the 0T tax code mean? It means no tax-free Personal Allowance is applied to the income covered by that code. Discover why HMRC uses 0T, how much tax you could pay, and what to do if your code is wrong.
What does the 0T tax code mean?
Tax code 0T means you receive no tax-free Personal Allowance against the pay or pension using that code. Income Tax is deducted from the first pound, using the applicable basic, higher and additional tax bands. It may be used because HMRC lacks the information needed to issue a different code, or because your allowance has already been used up or reduced to zero.
Important: 0T does not necessarily mean your tax code is wrong, and it does not mean that all your income is taxed at 40%.
Why have I been given a 0T tax code?
You've started a new job
Your employer may not have your P45 or sufficient starter information to establish the appropriate tax code.
Your allowance is used elsewhere
Your tax-free allowance may already be allocated to another employment or pension, leaving none for this income source.
Your allowance has fallen to zero
For example, the Personal Allowance is reduced by £1 for every £2 of adjusted net income above £100,000, reaching zero at £125,140.
0T tax code rates for 2026/27
For England and Northern Ireland, and for Welsh taxpayers under the 2026/27 Welsh rates, the following bands apply to taxable pay under 0T. The figures below illustrate annual bands; actual PAYE deductions depend on pay frequency, cumulative earnings and the code's basis.
| Income Tax band | Annual taxable pay under 0T | Rate |
|---|---|---|
| Basic rate | First £37,700 | 20% |
| Higher rate | Next £87,440 (£37,700 to £125,140) | 40% |
| Additional rate | Above £125,140 | 45% |
Example: If your monthly taxable pay is £2,000 and the whole amount falls within the basic-rate band, a 0T Month 1 calculation gives £400 Income Tax for that month, before National Insurance or other deductions. Scottish taxpayers use Scottish rates under S0T.
0T tax code calculator (2026/27)
Compare an illustrative full-year Income Tax liability under 0T with the standard 1257L allowance, using England, Wales and Northern Ireland rates.
Illustration only, not a payroll or refund calculation. Assumes this is your only income, standard allowance eligibility for the comparison, no reliefs or adjustments, and a full tax year. The 1257L comparison reduces the allowance for adjusted net income above £100,000. Excludes National Insurance, pension deductions and student loans. Actual PAYE and refunds depend on your complete circumstances.
0T versus 1257L, BR, D0 and other tax codes
| Code | What it generally means | Tax-free allowance on this income |
|---|---|---|
| 0T | Taxed using the relevant rate bands, without a Personal Allowance | No |
| 1257L | Standard Personal Allowance normally allocated to this job or pension | Usually £12,570 a year |
| BR | All pay from this source taxed at the basic rate | No |
| D0 | All pay from this source taxed at the higher rate | No |
| S0T | Scottish rates, no allowance against this income | No |
| C0T | Welsh rates, no allowance against this income | No |
| NT | No Income Tax deducted from the income covered by the code | Not applicable |
Unlike BR or D0, 0T uses multiple tax bands as the relevant taxable pay increases. The correct code depends on your overall income and circumstances.
How to check and correct a 0T tax code
Check your payslip
Confirm whether the code is 0T, 0T W1, 0T M1, S0T or C0T and which employment or pension it applies to.
Check your HMRC records
Use HMRC's tax code service or the HMRC app to review your income sources and code.
Give payroll missing information
If you recently started a job, provide your P45 or complete the HMRC starter checklist if appropriate. Ask payroll to check the information submitted.
Request a review if necessary
If the code still looks wrong, update your income details with HMRC or contact them. Your employer normally needs HMRC's updated coding instruction to change an issued code.
0T tax code: frequently asked questions
Does 0T mean I pay 40% tax?
No. Under 0T, Income Tax normally follows the applicable basic, higher and additional rate bands. There is no tax-free Personal Allowance against the income covered by the code, but it is not a flat 40% rate.
Is 0T always a temporary tax code?
No. It can be temporary if a new employer is missing information, but it can also be correct when your Personal Allowance has been allocated elsewhere or reduced to zero.
What is the difference between 0T and 0T M1?
0T normally works cumulatively where payroll has the required information. 0T M1 calculates the current month's tax without taking account of earlier months in that tax year. W1 applies the same principle weekly.
Can I have 0T on my second job?
Yes. If your Personal Allowance is used against your main employment or pension, 0T may be appropriate for another income source, depending on the tax bands and HMRC's assessment.
How long does it take HMRC to change a 0T code?
Timing depends on whether HMRC has the required employment and income information. Once your employer receives a revised code, it will usually apply it in an upcoming payroll run. Check your HMRC account and ask payroll if the new code has been received.
Can I claim back tax paid under 0T?
Only if you paid more Income Tax than you actually owed. HMRC may refund an overpayment through your wages or pension or after the tax-year reconciliation. The amount cannot be determined from the tax code alone.
Need help understanding your tax position?
The Online Accountants provides UK-wide online tax and Self Assessment support, including advice where multiple income sources make your tax position more complicated.
Official sources and further reading
Guidance checked against HMRC: What your tax code means, 2026/27 PAYE rates and thresholds and HMRC's PAYE manual. This general guide is not individual tax advice.