What is a 0T Tax Code?

The code 0T is issued as an emergency tax code.

HMRC will typically issue this code when they don’t have enough information on your income.

There are 2 main reasons why the code 0T is issued by HMRC.

Firstly, you have recently started a new job and your new employer is missing information. This could be due to either not providing a P45 or P46 starter declaration.

Or secondly, you have already used up your tax free personal allowances.

There is no flat rate tax with an 0T code.

You will likely pay either 20% basic rate or 40% higher rate but it depends on your income.

All of the income is taxable. No personal allowance is received with a 0T code. The personal allowance is the amount that can be earned before income tax is paid.

As no personal allowance is received you may be paying too much tax. However, this will depend on your individual circumstances.

One of the main reasons a 0T code is issued is insufficient information. As a result a 0T code could be received incorrectly.

If you have only one employment, then you are missing out on the personal allowance and likely to be paying too much tax.

Any tax overpaid to HMRC will be refunded but it can take a while. You can minimise the impact by correcting your tax code as soon as you notice an error.

You can check and update your information with HMRC using your personal tax account.

Alternatively you can phone HMRC on 0300 200 3300 and confirm your income.

By updating HMRC with your correct income details, they will be able to issue correct tax codes when required.

See our blog on UK Tax Codes Explained? It is a simple guide on all of the various tax codes issued in the UK.