What Does the D0 Tax Code Mean?
Higher Rate Code (Secondary Income)
description Core Meaning & Overview
D0 taxes 100% of the earnings from this job or pension at the 40% Higher Rate band from the first pound.
account_balance Legal & Payroll Mechanics (2026/27)
Applied when an individual’s primary job or cumulative income already exceeds the £50,270 higher-rate threshold. Since the basic-rate 20% band is completely exhausted by other income, every pound processed under this code incurs a 40% PAYE tax deduction.
warning Is Your D0 Tax Code Correct?
Check whether your main job actually pays over £50,270. If your main salary is lower, a D0 code will overcharge you 40% on secondary earnings. Notify HMRC to adjust your coding notice.
help Frequently Asked Questions About D0
When does HMRC issue a D0 tax code?
HMRC issues a D0 code when your primary income source already exceeds £50,270/yr, ensuring secondary income is taxed correctly at the higher rate without creating an end-of-year tax deficit.
Do I pay National Insurance on a D0 code?
Yes. Employee Class 1 NI is calculated independently on each job: 8% on earnings between £1,048 and £4,189 per month, and 2% above that.