Need help with tax code 0T?
Tax code 0T on your payslip means your Personal Allowance isn’t being applied, so tax is taken from the first pound you earn. If you want someone to sort it for you, our accounting services will get your code corrected and your take-home back on track.
If you’ve started a new job, changed income, or have more than one source of pay, 0T can appear and spike deductions. This guide explains what the code means, why it shows up, how it affects your PAYE, and the exact steps to fix it quickly.
In this guide, you’ll learn:
- what 0T means, including 0T vs BR and emergency codes
- how 0T changes your take-home with simple examples
- how to update HMRC and your employer to remove 0T
Need help with tax code 0T? Sleek will sort it fast.
What the 0T tax code means
The 0T tax code means you don’t get a tax-free Personal Allowance through this job, so every pound you earn is taxed.
Typically, most employees get a £12,570 allowance spread evenly across the tax year. If you’re on 0T, none of that allowance applies, so your full income is taxed at your usual rate.
You might first notice this on your payslip or in your P60.
It’s worth checking your details through your HMRC Personal Tax Account to see which code is currently in use.
When HMRC applies the 0T code
HMRC uses 0T when they don’t have full or up-to-date information about your income. Common reasons include:
- Starting a new job without giving your employer your P45 or a completed Starter Checklist (P46)
- Switching jobs mid-year while still on the old tax code
- Having multiple jobs or pensions using your allowance elsewhere
- Earning above £125,140, when your Personal Allowance is completely withdrawn
If you’re not sure which applies, ask your employer or check your coding notice online.
If you’ve got two jobs, HMRC can split your allowance between them to avoid being on 0T or BR for one of them.
See our guide on Tax on a Second Job for more information about how all this works in practice.
How the 0T tax code affects your income tax
With the 0T tax code, you pay tax on your full income from that job without any Personal Allowance deducted first. The rate you pay depends on which band your income falls into.
Tax bands under the 0T code
Band | Income range (2024/25) | Tax rate under 0T |
Basic rate | Up to £37,700 | 20% |
Higher rate | £37,701–£125,140 | 40% |
Additional rate | Over £125,140 | 45% |
In practice, this means you’ll likely see a higher deduction on your payslip until your code is corrected.
For example, if you earn £40,000 a year and you’re on 0T, you’ll pay tax on the entire £40,000 instead of £27,430 (which is £40,000 minus the £12,570 allowance).
Scotland has different income tax bands, where rates range from 19% up to 47%. If you’re based there, your 0T deductions will follow Scottish thresholds.
Fixing your 0T tax code
If you’ve spotted the 0T tax code on your payslip, don’t panic, it’s usually temporary and easy to fix. The key is making sure both your employer and HMRC have accurate information about your employment history and income.
Step 1. Give your employer the right documents
Provide your new employer with your P45 from your previous job. If you don’t have one, fill in HMRC’s Starter Checklist (P46) so they can apply the correct tax code.
You can also check your P45 vs P60 guide to understand the difference and why these forms matter for PAYE accuracy.
Step 2. Check your code with HMRC
Log in to your HMRC Personal Tax Account to confirm which tax code is active. If 0T is wrong, you can update your employment details directly online.
HMRC will usually send a new coding notice to both you and your employer within a few days.
Step 3. Look for the update on your payslip
Once corrected, the new tax code will appear on your next monthly payslip or within three weekly pay runs. You can review your National Insurance and tax deductions there to confirm everything’s aligned.
Step 4. Reclaim any overpaid tax
If you’ve paid too much under the 0T code, HMRC will usually refund you automatically through payroll. If not, you can claim a tax refund online using your National Insurance number and recent payslips.
The difference between 0T and other tax codes
Understanding how the 0T tax code compares with other common PAYE codes helps you check whether you’re being taxed correctly.
0T vs BR tax code
Both 0T and BR remove your Personal Allowance, but they work differently.
- BR taxes all your income at a flat 20%, no matter how much you earn.
- 0T taxes your full income at your marginal rate—20%, 40%, or 45%—depending on your total earnings.
If you’ve got a second job or pension, you might see BR appear there instead of 0T. Read more in our guide on tax for a second job.
0T vs W1/M1 emergency tax codes
Emergency codes like W1 (week 1) or M1 (month 1) are temporary. They give you a Personal Allowance for each pay period, but not cumulatively across the year. The 0T code gives no allowance at all.
Once HMRC receives your full employment details, these codes should be updated automatically.
0T vs 1257L
1257L is the standard code for most UK employees and includes the full £12,570 allowance. If you’re on 0T instead, you’re missing that allowance; so your tax bill will be higher until corrected.
Monitoring and updating your 0T tax code
Keeping an eye on your tax code helps you avoid surprise deductions or underpayments later in the year.
Check your payslip regularly
Each payslip shows your current tax code and National Insurance contributions. Compare this with the code listed in your HMRC Personal Tax Account. If the codes don’t match, contact HMRC or your employer’s payroll team.
If you’re self-employed as well as employed, review how income from both roles interacts. Our guide on tax obligations when running a business while employed explains how PAYE and Self Assessment can overlap.
Tell HMRC about life or job changes
Update HMRC whenever something changes that could affect your code, such as:
- starting or leaving a job
- receiving a new benefit in kind
- changes to working hours or salary
- getting married or claiming marriage allowance
You can make these updates online or through the HMRC app.
Keep your paperwork organised
Hold on to documents like your P45, P60, and National Insurance number. Having these ready makes fixing a tax code issue much quicker.
If your pay or benefits change mid-year, review your code again after your next payslip to make sure HMRC has adjusted it correctly.
The role of a tax accountant in managing your 0T tax code
You don’t have to fix the 0T code on your own. A qualified tax accountant can make sure your PAYE, allowances, and HMRC details are correct.
Reviewing your tax position
An accountant can check whether 0T was applied correctly, review past payslips, and calculate if you’ve overpaid. If your employer made an error, they can coordinate with payroll to get it corrected.
If you’re also a company director, your accountant can ensure that your salary, dividends, and any s455 tax obligations are reported correctly. This keeps your overall tax efficient and prevents double taxation.
Communicating with HMRC
Tax accountants deal with HMRC every day, so they can handle code updates or refund claims for you. They’ll make sure your P45 or P60 data matches HMRC’s records and follow up if delays occur.
Recovering overpaid tax
If the 0T code led to overpayments, your accountant can submit a reclaim or ensure HMRC processes the refund through payroll.
Common misconceptions about the 0T tax code
It’s easy to misunderstand what the 0T tax code means. Here are a few myths worth clearing up.
“0T is an emergency tax code”
It isn’t. Emergency codes usually end in W1, M1, or X and still include some Personal Allowance for each pay period. The 0T code applies no allowance at all and can tax you at higher rates until HMRC updates your record.
“You’ll lose money permanently if you’re on 0T”
You won’t. Any tax you overpay while on 0T is refunded once your code is corrected. HMRC will usually do this automatically through your employer or as a direct payment.
“Self-employed people can get the 0T tax code”
No. The 0T code only applies to PAYE employees. If you’re self-employed, you’ll pay tax through a Self Assessment tax return instead.
“The 0T code is permanent”
It’s temporary in most cases. Once HMRC receives the right details, it updates your record and restores your Personal Allowance.
Preventing future tax code issues
Once your 0T tax code is corrected, a few simple checks can stop it from reappearing.
- Give your new employer your P45 or complete the Starter Checklist if you don’t have one. This ensures the right code is used from your first payslip.
- Keep your HMRC Personal Tax Account up to date. Check your income, benefits, and address regularly to avoid coding delays.
- Tell payroll about any changes in salary, hours, or taxable benefits as soon as they happen.
- Check your PAYE deductions with your National Insurance guide to confirm everything aligns.
- If you’re a director, make sure your salary is reported properly through PAYE. See our guide on trading vs non-trading for Corporation Tax.
- Review your tax code each April using the tax year dates guide to catch any errors early.
How Sleek helps fix your 0T tax code
When your payslip shows the 0T tax code, something in your PAYE record or HMRC data isn’t matching up. Sleek’s accountants find and fix the root cause by reviewing your payroll setup, employment history, and coding notice.
We’ll contact HMRC directly, correct your tax code, and recover any overpaid tax for you. Once everything’s aligned, your future payslips will stay accurate, and any job or income changes will automatically update with HMRC.
Need help fixing your 0T tax code? Sleek will handle HMRC and make sure your next payslip shows the right code.
FAQs on tax code 0T
Why have I been given the 0T tax code?
You might be on the 0T code because you started a new job without a P45, didn’t complete a starter checklist, or have multiple jobs using your Personal Allowance elsewhere. HMRC may also apply it if you’ve already earned over £125,140 and no longer qualify for a tax-free allowance.
Is the 0T tax code temporary?
You’ll pay tax from the first pound you earn. The rate depends on your income band—20%, 40%, or 45% in England, Wales, and Northern Ireland, or Scottish rates if you live in Scotland.
Can I get a tax refund if I’ve been on 0T?
Yes. If you’ve overpaid, HMRC will normally refund you through your employer once your code is corrected. If not, you can claim a tax refund online.
What’s the difference between 0T and BR?
Both remove your Personal Allowance, but BR applies a flat 20% rate, while 0T taxes all your income at the appropriate band rate.
Can self-employed people get the 0T code?
No. The 0T code only applies to employees under PAYE. If you’re self-employed, you’ll pay tax through a Self Assessment tax return.
How can I prevent getting 0T again?
Keep your P45 and P60 safe, update HMRC if your job or income changes, and check your tax code each April. Sleek’s accountants can also manage your payroll and HMRC updates to keep your records accurate year-round.
Disclaimer: The preceding information is not legal advice. This content is aimed to provide general guidance. For more formal or legal advice, contact Sleek directly.
