What does tax code 0T mean? (UK 2026)

What is tax code 0T?

Tax code 0T tells your employer to tax every pound of your income, there's no personal allowance applied. For someone on the standard 2026/27 code (1257L), the first £12,570 each tax year is tax-free. On 0T, that £12,570 is taxed too.

The result: you pay around £2,514 more income tax per year than you would on a standard code, until HMRC and your employer get the right information about you and switch the code back.

0T is almost always temporary. Most people see it for one or two pay cycles before it's corrected, usually after completing a P45 hand-over or a starter checklist at a new job.

Why has HMRC put me on tax code 0T?

There are five common reasons your payslip shows 0T:

1. You started a new job and didn't hand over a P45. Your new employer has no information from your previous employer or HMRC, so they default to 0T until you complete a starter checklist (formerly the P46).
2. You completed a starter checklist but ticked "Statement C"."Statement C" tells the employer that this job is in addition to another job or pension. 0T (or BR, see below) is the correct code in that case.
3. You earn over £125,140 a year. The personal allowance is tapered away £1 for every £2 of income above £100,000, and disappears entirely at £125,140. HMRC therefore operates 0T as the actual correct code for high earners, not an error.
4. You have a second job or a pension. Your main employment uses your personal allowance via 1257L. Any second income source is usually put on 0T or BR so the allowance isn't claimed twice.
5. HMRC's records don't match your employer's. If you moved mid-tax-year, or there's a delay in HMRC issuing an updated code, 0T can be applied as a holding code while they reconcile.

How much extra tax does 0T cost me?

For a typical UK salary, the difference compared to the standard 1257L code:

The extra cost is constant at £2,514 across most salary bands because the missing allowance, £12,570, is taxed at the basic rate of 20%, giving £12,570 × 20% = £2,514. For high earners crossing the higher-rate threshold, the calculation gets more complex but the underlying point is the same: 0T removes your tax-free band.

Want to see your exact figures? Use our Salary Calculator , enter your salary and we'll show side-by-side what you'd take home on 1257L vs 0T.

How do I get my tax code changed from 0T?

The fix depends on which of the five causes above applies. In order of speed:

If you started a new job

Give your new employer your P45 from your previous job. If you don't have a P45 (lost it, or this is your first job in the tax year), complete the HMRC starter checklist, your employer's payroll team has the form. Make sure you tick the right statement:

• Statement A: This is your only or main job and you have no other taxable income. Usually gets you 1257L.
• Statement B: You've had another job earlier this tax year. The employer applies 1257L on a Week 1 / Month 1 basis until HMRC issues a final code.
• Statement C: You have another job or pension. 0T or BR is correct here, leave it.

If 0T was applied in error

Contact HMRC. You can do this three ways:

• Online: log in to your Personal Tax Account and request a tax-code review. Fastest option.
• Phone: 0300 200 3300, Mon-Fri 8am-6pm. Have your National Insurance number ready.
• Post: only worthwhile if you have no other option, takes 6+ weeks.

HMRC will issue a new tax code directly to your employer (via something called an SL1 notice). Your next payslip should show the new code, and any overpaid tax from the period on 0T is refunded automatically via PAYE , usually within one or two pay periods.

If you're a high earner over £125,140

0T is the correct code and there's nothing to fix. If you also pay tax via Self Assessment (because of additional income), make sure your Self Assessment return reconciles the PAYE figures correctly so you don't get double-taxed.

What's the difference between 0T and BR?

They both strip away your personal allowance, but they tax the income differently:

• 0T: applies the basic, higher and additional rate bands as if this were your only income. So someone earning £60,000 on 0T pays some 20%, some 40%.
• BR: taxes every pound at the basic rate (20%) only. No higher-rate stretch.

BR is commonly used for second jobs where you know the main job uses up all the basic-rate band, though if your second income pushes you into higher-rate territory overall, BR can leave you underpaid at year-end. 0T tends to be safer for high earners or unpredictable second-income situations. HMRC will choose whichever fits your case.

How do I check my current tax code?

Three reliable sources, listed in order of speed:

1. Your latest payslip, the tax code is printed near your gross pay or NI number. This is what your employer is operating right now.
2. Your Personal Tax Account , shows the code HMRC has assigned. If the payslip code and this code differ, your employer hasn't received the latest notice yet.
3. Your P60 (April-issued) or P45 (when leaving a job) , shows the code that was in operation at year-end or job-end.

Will I get my overpaid tax back?

Yes, and you usually don't need to do anything.

When HMRC issues your corrected code (e.g. 1257L), it's typically operated on a cumulative basis. That means your next payslip recalculates your year-to-date tax using the new code, and refunds any excess paid while you were on 0T directly through PAYE. Most people see the refund land within one or two pay cycles after the code change.

If you stop the job before that happens, for example, you only worked a short stint and you're back on 0T at year-end, HMRC reconciles everything once the tax year closes (after 6 April). They'll either send you a P800 refund cheque or credit your tax account.

If you also file Self Assessment, the overpayment is reconciled there and refunded as part of your normal SA balance.

When does HMRC issue 0T as the final code?

0T is the correct, permanent code in three situations:

• You earn above £125,140, personal allowance is fully tapered.
• You have an additional job or pension and the main one already uses your full allowance.
• You're a non-resident with no UK personal allowance entitlement.

Outside those cases, 0T is almost always temporary and should be investigated.

Common 0T mistakes

• Assuming it's an employer error. 95% of the time it's because HMRC doesn't have a P45 or a starter checklist. The employer is following the right rules.
• Waiting for it to fix itself. If you've started a new job in March / April, the tax year ends before the code is corrected and the refund only comes after the year-end reconciliation, wait six months instead of two weeks.
• Ticking Statement A when you've had a job earlier in the year. This is the most common starter-checklist mistake. Pick Statement B if you've worked at all this tax year.
• Treating 0T like an emergency code. The emergency code is actually 1257L on a Week 1 / Month 1 basis. 0T is more punishing because it removes the allowance entirely, fix it sooner.

Frequently asked questions

Is 0T the same as emergency tax?

No. The emergency code is 1257L W1/M1, you still get the personal allowance, just not cumulatively. 0T removes the allowance completely and costs more.

How long does it take HMRC to change my tax code?

If you contact them via your Personal Tax Account, the new code can be issued to your employer within a few working days. Phone is similar. Postal queries take 4-6 weeks.

Can my employer change my tax code without HMRC?

No. The employer must operate whichever code HMRC has issued (via a P6 or SL1 notice). They can fix a temporary 0T only by switching to the starter-checklist code based on which statement you selected.

What if I'm on 0T because I have two jobs?

That's likely correct. HMRC operates 0T (or BR) on the second job to avoid double-counting your allowance. If your total income is below the higher-rate threshold and 0T is over-taxing you, ask HMRC to issue split tax codes, they can divide your allowance between the two jobs.

Does 0T affect my National Insurance?

No. NI is calculated separately on each job's gross pay using the NI thresholds. Your tax code has no effect on NI.

I had 0T last year, am I owed a refund?

If you didn't claim it and the year is closed, HMRC's automatic reconciliation should have issued a P800 by October following the tax year-end. If you didn't receive one, log in to your Personal Tax Account or call 0300 200 3300 and ask them to check.