What is a 0T Tax Code?

Wondering what your tax code means? In this short, simple and easy-to-understand guide, we explore what a 0T tax code is, why you may have it, how much you’ll pay on this tax code and how you can change it.

What is an 0T tax code?

In layman’s terms, it is an emergency tax code HMRC attaches to your salary if they don’t have enough details to figure out how much tax you should pay. You shouldn’t ignore it, you could miss out on your tax-free allowance if you don’t act.

How to find out if you are on an 0T tax code?

You can find if you are on the 0T tax code by logging into your government gateway account on HMRC, or giving HMRC a call.

Is 0T an emergency tax code?

Yes. HMRC will apply a 0T emergency tax code under certain cases (which we take a look at later in the guide).

Why you may have an 0T tax code

There are three main reasons for HMRC lumping you with a 0T tax code:

  • You haven’t given your new work your P45 from your old job and haven’t filled in a P46
  • You have used all your tax-free personal allowance
  • Since you started working at your new job, you haven’t given them all the information they need to give you the correct tax code

How much tax will you pay on an 0T tax code?

Under the 0T tax code, you will be taxed on all of your income i.e. you won’t receive your tax-free personal allowance (£12,570 for tax year 22/23). This could hit you right in the pocket and you could even be taxed up to 40% on all of your income – if you fall into the higher earning bracket.

How to change your 0T tax code

If you think your 0T tax code – or any tax code is wrong – you can amend or change online using HMRC’s Income Tax online service. Not that tech-savvy? You can give HMRC a bell on 0300 200 3300 – but be warned there might be a wait!

A 0T tax code is something that should be avoided like the plague. If you don’t sort it out, you could be left with a hefty chunk of change that you’re entitled to going into HMRC’s pocket, rather than your own.

Of course, you will get your monies overpaid due to an incorrect tax code back eventually. This could be as repayments in your salary throughout the year, as an automatic refund after the end of the tax year, or even refunded as part of your self-assessment process, if you complete an annual personal tax return.

Here to help

Looking for a tax rebate? At Brian Alfred, we specialise in everything to do with tax rebates and can take a lot of the leg work away from you. Why not contact us to see how we can help?