What Does the 0T Tax Code Mean?
Zero Allowance / Emergency Code
description Core Meaning & Overview
Assigned when you have no tax-free Personal Allowance left, or your new employer has not yet received your P45 records.
account_balance Legal & Payroll Mechanics (2026/27)
Under a 0T code, every single pound of income is taxed from the very first penny. Unlike the BR code (which fixes tax at a flat 20%), a 0T code scales progressively: the first £37,700 of taxable pay is taxed at 20%, earnings between £37,701 and £125,140 are taxed at 40%, and earnings over £125,140 are taxed at 45%.
warning Is Your 0T Tax Code Correct?
If you were placed on a 0T code upon starting a new job, provide your P45 to payroll immediately or log into your online HMRC account to claim your unused personal allowance and trigger a tax refund on your next payslip.
help Frequently Asked Questions About 0T
Why am I on a 0T tax code?
Common reasons include starting a new job without a P45, earning over £125,140 (where the Personal Allowance is fully phased out), or using your full allowance against another job or pension.
Can I get a tax refund if 0T was applied in error?
Yes. Once HMRC issues an updated cumulative coding notice (e.g. 1257L) to your employer, your payroll department will automatically refund any overpaid PAYE tax in your next salary.