With SD0, every pound from this job or pension is taxed at Scotland's intermediate rate, 21% in 2026-27, with no Personal Allowance. It is used when your other income already fills the Scottish bands up to £29,526, so this extra income falls in the 21% band.
SD0 is not a starter rate code. There is no flat-rate code for the 19% starter band. For income in the 20% basic band HMRC uses SBR, and for the 42% higher band SD1.
Scottish bands and the code that matches each one
| Band | Taxable income 2026-27 | Rate | Flat-rate code |
|---|---|---|---|
| Starter | £12,571 to £16,537 | 19% | none |
| Basic | £16,538 to £29,526 | 20% | SBR |
| Intermediate | £29,527 to £43,662 | 21% | SD0 |
| Higher | £43,663 to £75,000 | 42% | SD1 |
| Advanced | £75,001 to £125,140 | 45% | SD2 |
| Top | Over £125,140 | 48% | SD3 |
Code meanings from GOV.UK, what your tax code means. Band limits from GOV.UK, rates and thresholds for employers 2026 to 2027.
Take-home pay on SD0 in 2026-27
| Pay from this job (year) | Income tax at 21% | National Insurance | Take-home |
|---|---|---|---|
| £5,000 | £1,050 | £0 | £3,950 |
| £10,000 | £2,100 | £0 | £7,900 |
| £15,000 | £3,150 | £194 | £11,656 |
| £20,000 | £4,200 | £594 | £15,206 |
| £30,000 | £6,300 | £1,394 | £22,306 |
National Insurance is worked out separately for each job: 8% on the part of this job's pay above £12,570 a year, 2% above £50,270. A small second job below £12,570 pays no National Insurance at all.
Why have you been given SD0?
- Your main salary is between about £29,527 and £43,662, so extra income lands in the intermediate band.
- You receive a pension or a second salary on top of pay at that level.
If your combined income will push the extra job into the higher band, HMRC may move you to SD1 later in the year. If your main income dropped, SBR may be the correct code instead. Your personal tax account shows the code for each job.
Frequently asked questions
What does SD0 tax code mean?
All income from this job or pension is taxed at the Scottish intermediate rate, 21% in 2026-27, with no tax-free allowance.
How does SD0 compare to SBR?
SBR taxes at 20%, SD0 at 21%. On £10,000 of extra pay, SD0 takes £100 more a year than SBR.
SD0 is on my only job. What should I do?
Contact HMRC. With a single job you would normally have S1257L, which includes the £12,570 Personal Allowance.
Do I pay National Insurance with SD0?
Yes, on the usual basis: 8% on this job's pay above £12,570 a year and 2% above £50,270.