HMRC Statutory Reference • 2026/27
What Does the D1 Tax Code Mean?
Additional Rate Code (Top Bracket)
D1
Personal Allowance
£0
Tax Regime
Flat Rate Code (45%)
Tax Year
2026/27
description Core Meaning & Overview
The D1 code taxes every pound of income from this source at the top UK tax rate of 45%.
account_balance Legal & Payroll Mechanics (2026/27)
Issued when an individual’s total taxable earnings exceed the £125,140 Additional Rate threshold. No Personal Allowance or basic/higher rate bands apply to this payroll stream; PAYE is deducted at a flat 45%.
warning Is Your D1 Tax Code Correct?
D1 earners face the maximum statutory tax rate. Consider tax-efficient planning such as workplace salary sacrifice or personal SIPP contributions to reduce taxable gross income.
help Frequently Asked Questions About D1
Who receives a D1 tax code?
High earners whose primary income already exceeds £125,140 per year, making all secondary income liable to the 45% Additional Rate.
What is the Scottish equivalent of D1?
In Scotland, the top tax rate is 48% (the Top Rate), which is represented by code SD2.