Seeing the 0T tax code on your payslip can be a little worrying. But it is actually more common than people think. This tax code is basically a temporary code used by HMRC when they don’t have enough information to give you your tax-free personal allowance. So your earnings are taxed without any allowance applied.
It’s a common code. Especially when starting a new job, changing employers or if your details haven’t reached HMRC yet.
In this guide we’ll cover everything you need to know about the tax code 0t, including:
- What Is The 0T Tax Code,
- What Can You Do To Fix It,
- 0t tax code refund, and
- Much More…
Let’s get into it!
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What Does The 0T Tax Code Mean?
The 0T tax code means you are receiving 0 Personal Allowance through your current employment or pension.
In the UK, you have a chunk of money that you can earn each year completely tax free. That is called your Personal Allowance. And this is usually £12,570 for most people. But when you have a 0T tax code, that allowance is gone. It means HMRC thinks you’ve already used up your Personal Allowance somewhere else, so every single pound you earn from that specific job or pension is taxed from the very start.
Why Have I Been Put On The 0T Tax Code?
There are a few common and simple reasons you might have been given 0T tax code:
- You started a new job: If you begin a new role and forget to give your new boss your P45 or fill out the Starter Checklist, your new employer has to guess your tax code. And 0T is the safe option until they have the full picture.
- You have more than one job: If you’re juggling a couple of jobs or have a pension, HMRC might assume your Personal Allowance is being used by your other income. Thus, they apply the 0T code to your secondary income to prevent underpaying tax.
- You’re a high earner: For those earning over £125,140 a year, your Personal Allowance gets completely removed by HMRC. Therefore, the 0T code becomes your permanent tax code.
- Post-Leaving or Final Payments: When someone leaves a job and receives payments after leaving, for example, final salary or statutory pay, HMRC may require 0T to calculate tax.
How The 0T Tax Code Affects Your Income Tax?
With 0T, your take home pay will be lower compared to someone on the standard 1257L code. On 1257L, the first £12,570 is tax free. Whereas on 0T, you pay tax from pound one. This means more tax deducted until your code is corrected.
For example, if you earn £30,000 a year:
- On 1257L, you’d only pay tax on £17,430 (after allowance).
- On 0T, you’d pay tax on the full £30,000.
How Much Tax Will I Pay On 0T?
As discussed above, since you don’t get a personal allowance, tax is charged from pound one:
| Tax Band | Annual Taxable Income Range | Tax Rate | What This Means with 0T |
| Basic Rate | £0 – £37,700 | 20% | All of that portion is taxed at 20% because your allowance doesn’t reduce the taxed amount. |
| Higher Rate | £37,701 – £125,140 | 40% | If your income falls in here, that part gets taxed at 40%. |
| Additional Rate | Over £125,140 | 45% | Earnings above this are taxed at 45%. |
Scottish Tax Rates And Bands For 2025/26
For Scottish taxpayers, the income tax bands and rates are different, and a 0T code would apply those progressive rates from the first pound earned.
- Starter Rate (19%): On income from £0 to £15,397.
- Basic Rate (20%): On income from £15,398 to £27,491.
- Intermediate Rate (21%): On income from £27,492 to £43,662.
- Higher Rate (42%): On income from £43,663 to £75,000.
- Advanced Rate (45%): On income from £75,001 to £125,140.
- Top Rate (48%): On income over £125,140.
Is 0T A Temporary Tax Code?
For most people, yes, 0T is a temporary code. HMRC uses 0T as a temporary fix to make sure they collect some tax while they figure out your correct tax position. The moment they have the right information, they will update your tax code. This can take a month or two.
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The Difference Between 0T And Other Tax Codes?
Tax codes are used to show how much tax-free allowance you get. Here’s how 0T compares:
| Tax Code | How it’s different from 0T |
| 1257L (Standard Code) | This is the most common code and gives you a tax-free allowance (£12,570 for 2025/26). 0T gives you none of this. |
| BR (Basic Rate) | This code also removes your tax-free allowance but only taxes your income at the basic 20% rate. It’s often used for a second job. 0T can tax you at higher rates if you earn enough. |
| D0 / D1 (Higher Rates) | These codes are for second jobs and tax your income at the higher (40%) or additional (45%) rates. 0T applies the correct tax band for your total income, not a flat rate. |
| K | This means you have more untaxed income or benefits than your tax-free allowance, so you pay tax on everything. 0T is usually temporary and due to missing information, while K is based on your actual finances. |
| NT (No Tax) | This code means you pay no tax at all on that income, which is the complete opposite of 0T. |
Check Out: Tax Code 1257L: A Complete Guide 2025
Is 0T The Same As BR Tax Code?
No, 0T and BR (Basic Rate) are not the same. However, they are very similar in principle. Both codes remove the tax free Personal Allowance but they differ in the tax rate they apply.
BR (Basic Rate) Tax Code Explained
The BR code is typically used for a second job or second source of income where your Personal Allowance is already being claimed in your main job. All income from that source is taxed at a flat 20%.
Key Differences: 0T vs BR
The distinction matters most for higher earners:
| Feature | 0T Tax Code | BR Tax Code |
| Personal Allowance | No tax-free allowance. | No tax-free allowance. |
| Tax Rate | Variable, uses the full range of tax rates (20%, 40%, 45%) depending on your income level. | Fixed, a flat rate of 20% (basic rate) is applied to all income from that source. |
| Circumstance | Often temporary. Used when HMRC needs more information or your Personal Allowance is fully used. | Typically used for secondary income (like a second job) where your Personal Allowance is applied to your main job. |
Common Issues With The 0T Tax Code
The main issue with the 0T code is that it drastically reduces your take home pay because you’re paying tax on every single pound you earn. This can cause immediate financial strain and budgeting problems. Other common issues include:
- Cash flow issues: Seeing significantly less money in your payslip can make it hard to cover your usual expenses.
- Overpaying tax: In many cases, the 0T code is incorrect. This means you’ve overpaid tax, which you’ll need to sort out later.
- Confusion and worry: Not knowing why you’re on this code can be stressful and lead to unnecessary concern.
- Potential underpayment (eventually): If the 0T code is never corrected, it could lead to an incorrect annual tax calculation, though overpayment is more common.
How Do I Fix The 0T Tax Code?
Fixing an incorrect 0T tax code is usually straightforward. The key is to get your correct income information to HMRC as quickly as possible.
- Check your details: First, make sure your employer has all your relevant documentation, like your P45 from your previous job or a completed HMRC Starter Checklist.
- Use your Personal Tax Account: The easiest way to check and update your tax details is through your online HMRC Personal Tax Account. Here, you can update your employment details or tell HMRC about any changes in your income.
- Contact HMRC directly: If updating online doesn’t work or you prefer to speak to someone, you can call the HMRC Income Tax helpline on 0300 200 3300. Have your National Insurance number and payslips ready.
- Regular review: Keep checking your payslips to make sure the code has been updated to the correct one (usually a number followed by ‘L’, like 1257L).
Can I Claim Back Tax Deducted Under 0T?
Yes, you can. If the 0T code was used wrongly or stayed on your payslip longer than it should have, you can claim the extra tax back. HMRC will calculate how much you overpaid and issue the refund.
How Do I Contact HMRC About An Incorrect Tax Code?
You can contact HMRC about an incorrect tax code either online through your Personal Tax Account or by phone using the official helpline.
Contacting HMRC Online
The quickest way to check and update your details is through your online Personal Tax Account:
- Go to the HMRC Personal Tax Account page on GOV.UK.
- Sign in using your Government Gateway user ID and password.
- Use the “Check your Income Tax” service to:
- Review your current tax code and how it was calculated.
- Update your employment details.
- Tell HMRC about changes to your income or benefits that might affect your code (e.g., adding a new job or claiming expenses).
HMRC will usually update your tax code and inform both you and your employer of the change after you’ve provided the correct details.
Contacting HMRC by Phone
If you cannot use the online service or prefer to speak to someone directly, you can call the Income Tax helpline. It is recommended to call before 10 am, as lines are often less busy.
- Income Tax Helpline: 0300 200 3300
- From outside the UK: +44 135 535 9022
- Relay UK (for those who cannot hear or speak on the phone): Dial 18001 then 0300 200 3300
When you call, make sure to have the following information ready to hand:
- Your National Insurance number.
- Any P45 or P60 forms you have.
- Details of your income, including your estimated annual earnings.
- Your employer’s or pension provider’s tax reference number (found on your payslip).
For more information on contact methods, you can visit the official HMRC contacts page on GOV.UK.
Will I Get A Tax Refund From 0T Tax Code?
Yes, if you’ve overpaid tax while on 0T, HMRC usually refunds the extra. This can happen:
- Automatically through payroll once your code is corrected.
- At the end of the tax year if adjustments weren’t made earlier.
If the refund doesn’t appear automatically within a couple of months or at the end of the tax year, you can claim it yourself through your online HMRC Personal Tax Account. You have up to four years after the end of the relevant tax year to claim a refund.
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The Bottom Line
The 0T tax code means no personal allowance, so you pay tax on all your income. It’s often temporary and linked to missing paperwork or multiple jobs.
Always check your payslip and act quickly if you think it’s wrong.
How Accotax Can Help?
If you need help with your tax codes or any other accounting services, visit Accotax. We offer a range of packages designed to fit your unique needs.
We’re confident that our guidance will free you up to think about strategy and growth, not paperwork.
Disclaimer: All the information provided in this article on “What Is The 0T Tax Code?” including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.