What is an 0T Tax Code?

The 0T tax code means you have no personal allowance, so all earnings are taxed. Learn why you have it, how much tax you’ll pay, and how to fix it.

If you’ve noticed 0T on your payslip, you may be paying more tax than expected. The 0T tax code means you have no tax-free personal allowance, so all income is taxed at 20%, 40%, or 45% depending on your earnings.

This guide explains why you have an 0T tax code, how much tax you’ll pay, how it compares to BR tax codes, and how to change it if incorrect.

What Does a 0T Tax Code Mean?

The 0T tax code means you don’t receive any personal allowance, so your entire income is taxed. This usually happens when HMRC doesn’t have enough information to apply the correct tax code.

With a 0T tax code, your employer deducts tax at:

  • 20% on earnings up to £50,270

  • 40% on earnings between £50,271 and £125,140

  • 45% on earnings over £125,140

Example: How 0T Tax Code Affects Your Pay

If you earn £30,000 per year on a 0T tax code:

  • £30,000 taxed at 20% = £6,000 tax deducted.

If you had a normal tax code (1257L), only £17,430 of your earnings would be taxed at 20% after the £12,570 personal allowance.

Why Do I Have an 0T Tax Code?

You may have been assigned an 0T tax code if:

  • You started a new job and didn’t provide a P45 from your previous employer.

  • You changed jobs and used up your personal allowance elsewhere.

  • You exceeded your personal allowance (e.g., second job or high earnings).

  • You left employment and started receiving a pension.

  • You owe unpaid tax from previous years.

0T Tax Code vs BR Tax Code

Both 0T and BR tax codes deduct tax on all earnings, but there are differences:

  • 0T: No personal allowance, full income taxed at 20%, 40%, or 45% (Used when HMRC lacks income details)

  • BR: All income taxed at 20% (basic rate) (Used for second jobs or pensions)

A BR tax code is better for basic rate taxpayers, as it doesn’t apply higher tax rates unless income exceeds £50,270.

How Much Tax Will I Pay on an 0T Tax Code?

The amount of tax depends on your earnings:

  • Annual Earnings £20,000: Tax Paid £4,000 (20%)

  • Annual Earnings £40,000: Tax Paid £8,000 (20%)

  • Annual Earnings £60,000: Tax Paid £10,108 (20% up to £50,270, then 40%)

  • Annual Earnings £130,000: Tax Paid £41,942 (20%, 40%, and 45% brackets apply)

Will I Get a Tax Rebate After Being on an 0T Tax Code?

Yes, if you were on an 0T tax code incorrectly, you could be due a refund.

You might get a tax rebate if:

  • Your employer applied 0T tax by mistake.

  • HMRC updated your tax code later in the year.

  • You overpaid tax due to incorrect deductions.

How to Claim an 0T Tax Refund

  1. Check your tax code via your payslip or HMRC online account.

  2. Wait until HMRC corrects your code – refunds are sometimes automatic.

  3. Manually claim a refund by submitting a P800 form (via GOV.UK) if you believe you have overpaid.

Will I Get My 0T Tax Back?

If your tax code is corrected, HMRC will usually:

  • Refund overpaid tax automatically through payroll.

  • Issue a P800 tax calculation at the end of the tax year.

  • Allow you to claim a refund manually if necessary.

However, if 0T was correctly applied (e.g., you’ve used your allowance elsewhere), you won’t get a refund.

I Am on an 0T Tax Code – How Do I Change It?

If you believe you should not be on an 0T tax code, follow these steps:

1. Check Your Payslip

Look at your latest payslip to confirm your tax code.

2. Provide Your P45

If you changed jobs, give your new employer your P45 from your previous job to correct your tax code.

3. Contact HMRC

Call HMRC at 0300 200 3300 to check why you’ve been assigned 0T and ask for a code update.

4. Update Your Personal Tax Account

Log into your HMRC online tax account to update your employment details and request a tax code review.

5. Wait for Your Employer to Apply the New Code

Once HMRC updates your code, your employer will apply the correct tax deductions.

Common Issues with the 0T Tax Code

  • Emergency Tax Applied – If you started a new job without a P45, your employer may apply 0T tax temporarily.

  • Second Job Tax Issues – If your main job uses your personal allowance, your second job may be taxed under 0T.

  • Tax Refund Delays – If you are due a refund, it may take HMRC a few weeks to process.

  • Incorrect PAYE Records – HMRC may have outdated or incorrect income details, affecting your tax code.

Final Thoughts

A 0T tax code means no personal allowance, so all income is taxed. This can lead to higher deductions if applied incorrectly. If you think your 0T tax code is wrong, check with HMRC or your employer to correct it and claim any overpaid tax.