Tax code 0T means you get no tax-free Personal Allowance from that job or pension. Every pound of pay is taxed through the normal bands: 20%, 40% and 45% in England, Wales and Northern Ireland, or the Scottish rates from 19% to 48% under S0T. HMRC uses it in two situations. Either your allowance has been used up, for example because income of £125,140 or more has tapered it to nil, or your employer does not have the information it needs, often when a new starter has not completed a starter checklist.
What 0T means in practice
A normal code such as 1257L gives £12,570 of tax-free pay a year, worked out as £1,048 a month or £242 a week for 2026/27. With 0T, the tax-free amount is zero. Unlike BR or D0, however, 0T still runs through the tax bands. HMRC's PAYE Manual says the code "charges tax through the rate bands at basic rate, higher rate and any additional rates depending on the individual's earnings".
The prefix tells you which rates apply:
- 0T. UK rates outside Scotland and Wales: 20% up to £37,700 of taxable income, 40% up to £125,140 and 45% above;
- S0T. Scottish taxpayer: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced and 48% top rate;
- C0T. Welsh taxpayer. The Welsh rates for 2026/27 are the same as England's.
The code can be operated cumulatively, or on a week 1/month 1 (non-cumulative) basis, shown as 0T W1 or 0T M1. On a non-cumulative basis, each payment is taxed on its own, with that period's share of each band.
Why you might be on 0T
1. Your Personal Allowance has been tapered away. The allowance falls by £1 for every £2 of adjusted net income above £100,000, reaching zero at £125,140. HMRC's manual lists "Personal allowance has been tapered to 0" as a reason for 0T. If HMRC expects your income to be above that level, your main job may carry 0T so the right tax is collected during the year.
2. You have used your allowance elsewhere. Gov.uk describes 0T as meaning "your Personal Allowance has been used up". This can happen when another job or pension uses all of it.
3. You are a new starter and no statement was chosen. If you do not give your employer a P45 and do not tick Statement A, B or C on the starter checklist, HMRC's PAYE Manual sets 0T on a week 1/month 1 basis. HMRC staff are told not to change it manually "unless full income details for all employment sources are known".
4. You were paid only once. For employees paid on a single occasion, HMRC tells employers to use 0T on a week 1 or month 1 basis and to put "IO" in the pay frequency field on the FPS.
5. Some Scottish second jobs. The manual also lists secondary employments where the Scottish Government sets a lower rate of tax and the main job's taxable income does not use all of that lower rate band.
How much extra tax 0T costs
Illustration (not an HMRC example). A monthly-paid employee outside Scotland earns £2,000 a month.
- On 1257L. £1,048 is tax-free and £952 is taxed at 20%, giving £190.40 tax;
- On 0T M1. All £2,000 is taxed at 20%, giving £400.00.
The difference, £209.60 a month, is 20% of the monthly allowance. Over a full year at basic rate that is £2,514 (20% of £12,570). For someone who really is entitled to an allowance, that money is overpaid. It comes back once a correct code is issued, through payroll if the new code is cumulative, or otherwise after the tax year ends.
If 0T is correct, for example for a £130,000 earner with no allowance left, it is not an overpayment. It simply collects the right tax during the year.
0T compared with BR, D0 and emergency codes
| Code | Personal Allowance | Tax rates applied |
|---|---|---|
| 1257L | £12,570 | All bands, after the allowance |
| 1257L W1/M1 (emergency) | £12,570, one period at a time | All bands, non-cumulative |
| 0T | None | All bands from the first pound |
| BR | None | Basic rate on everything, ignoring higher rates |
| D0 / D1 | None | Higher (40%) / additional (45%) rate on everything |
BR is usually for a second job where the allowance is given in the main job. 0T is more cautious, because it still applies higher rates once the bands are used. For the emergency codes, see our emergency tax code guide.
How to get off 0T if it is wrong
- Check why it was issued. Use HMRC's Check your Income Tax service or the HMRC app to see your code and the income HMRC holds for each job and pension;
- Give your employer your P45 or a starter checklist. If 0T came from missing starter information, this usually fixes it at source;
- Correct HMRC's records. Update estimated income, ended jobs or pensions online. HMRC then sends the new code to you and your employer, normally within 15 working days;
- Wait for the payslip. Monthly-paid staff should see the new code on their next or following payslip, and weekly-paid staff by their third. If the new code is cumulative, overpaid tax is refunded through pay.
If you started a new job recently, HMRC suggests waiting 35 days for it to receive your income details before contacting it. More on fixing codes is in our wrong tax code guide. The official sources are gov.uk's tax code letters table and the PAYE Manual on special codes.
Acumon's PAYE services team checks starter codes before the first payroll run. Our income tax returns service deals with high earners whose allowance is tapered and who need their code and Self Assessment position aligned. If you earn between £100,000 and £125,140, check your code each April.