by Asim Abbas
11 November 2026 
The 0T tax code: why you have it and how to fix it
The 0T tax code: why you have it and how to fix it
Seeing 0T on your payslip can be a shock. It means you’re getting no tax-free personal allowance from that job, so every pound is taxed.
- 0T means no tax-free allowance on that job
- It’s common after starting a job without a P45
- It’s correct if your income is over £125,140
- Overpaid tax is refunded once the code is fixed
Sometimes it’s correct. Often it’s temporary, and occasionally it’s a mistake that costs you money until it’s fixed.
This guide explains why you might have an 0T code, how much it costs and what to do about it.
What does 0T mean?
The 0 means no tax-free pay, and the T means HMRC needs more information or is reviewing your code. Your employer taxes everything you earn at the normal bands: 20%, 40% and 45%.
Why you might have an 0T code
- New job without a P45: your employer doesn’t know whether your allowance is used elsewhere
- Second job: your allowance is used by your main job (though BR is more common)
- High income: your personal allowance falls by £1 for every £2 over £100,000 and is gone at £125,140
- Out-of-date details: HMRC hasn’t got the right information about your income
How much does it cost?
On a £40,000 salary, the normal 1257L code means tax of about £5,486 a year. On 0T, the full £40,000 is taxable: £37,700 at 20% and £2,300 at 40%, so about £8,460. That’s nearly £250 a month more until it’s corrected.
Tax code checker
See the tax on 0T versus the standard code.
0T on an emergency basis
If your code shows 0T W1 or 0T M1, each pay period is taxed separately. You won’t get any refund through payroll until it’s changed to a cumulative code. If it shows just 0T, any refund flows back automatically once your code is updated.
Fixed-fee accountancy support
Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.
Get a fixed-fee quoteCall 0161 531 4179How to fix it
- Give your employer your P45 or complete the starter checklist
- Check your jobs and income in your personal tax account and update anything missing
- Contact HMRC if your code still looks wrong
- Check your payslips for the next two pay periods to confirm the change
Getting your money back
Once your code is corrected, the overpaid tax is usually refunded through your next pay. If the tax year has ended, HMRC will send a P800 calculation and refund. If your income is over £100,000, 0T may be correct, and pension contributions could restore part of your allowance. Our high earner tax returns team can help.
Not sure what your code means? Try our tax code checker or see what your tax code means.
What should I do next?
New job, second job or high income?
Through your personal tax account.
The refund should follow.
We can deal with HMRC for you. Contact us.
Frequently Asked Questions
Is the 0T tax code temporary?
Often, yes. It’s usually used until HMRC has the right information about your income, such as a P45 from your last job.
Will I get the extra tax back?
Yes, if the code was wrong. It’s refunded through payroll once corrected, or by a P800 after the tax year ends.
Is 0T the same as BR?
No. BR taxes everything at 20%. 0T taxes everything at your normal bands, so higher earners pay 40% or 45% on part of it.
Why do I have 0T if I earn over £125,140?
Because your personal allowance is fully withdrawn at that income, so 0T is correct.
Can pension contributions help?
If your income is between £100,000 and £125,140, pension contributions can restore some or all of your personal allowance.
Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.
About the Author
Ali Imran
I’m Ali Imran, an accountant at Wingate Accountants. I help sole traders, landlords and directors get their returns filed early and accurately, without the last-minute panic.
