Basic Rate Code 2025-26 Tax Year

Tax Code 0T Explained

Tax code 0T means you receive no Personal Allowance from this employer, so all your income is taxable from the first pound. Unlike BR (which uses a flat 20%), 0T applies the normal tax bands: 20% up to £50,270, 40% from £50,271 to £125,140, and 45% above that. For lower salaries this gives the same result as BR, but for salaries above £50,270, 0T taxes more than BR and less than D0.

Tax Code
0T
Personal Allowance
None (£0 added to taxable income)
Category
Basic Rate Code

Who gets tax code 0T?

People starting a new job without a P45, those who haven't returned a starter checklist, or where HMRC has withdrawn the Personal Allowance pending further information. It can also apply when all your allowances have been used up — for example if you have untaxed income equal to or greater than your Personal Allowance from another source.

Take-home pay on tax code 0T — 2025-26 examples

Examples below show Income Tax and take-home pay at common salary levels. National Insurance (NI) is also shown separately — NI is not affected by your tax code and applies on the same basis for all employees.

Gross Salary Income Tax NI (est.) Take-Home Effective IT Rate
£20,000 £4,000 £594 £15,406 20.0%
£25,000 £5,000 £994 £19,006 20.0%
£30,000 £6,000 £1,394 £22,606 20.0%
£35,000 £7,000 £1,794 £26,206 20.0%
£40,000 £8,000 £2,194 £29,806 20.0%
£45,000 £9,000 £2,594 £33,406 20.0%
£50,000 £10,000 £2,994 £37,006 20.0%
£60,000 £13,946 £3,211 £42,843 23.2%
£75,000 £19,946 £3,511 £51,543 26.6%
£100,000 £29,946 £4,011 £66,043 29.9%

Take-home = Gross − Income Tax − National Insurance. No pension, student loan or other deductions included. NI calculated at 8% between £12,570–£50,270 and 2% above. Effective IT Rate shows Income Tax as a percentage of gross salary.

If you have tax code 0T, here's what you should know

  • Your tax code appears on your payslip, P60, and any correspondence from HMRC about your PAYE tax.
  • Your employer uses this code to calculate how much Income Tax to deduct from each pay period — they do not set it themselves.
  • If your circumstances change (new job, change in benefits, marriage allowance), your code should update automatically — but it is worth checking.
  • You can view and update your tax code online via your Personal Tax Account at gov.uk.
  • If you think your code is wrong, contact HMRC on 0300 200 3300 or use the HMRC app.
  • An incorrect tax code can mean you overpay or underpay tax — overpayments are refunded, underpayments are collected in future years.

Frequently asked questions

What does tax code 0T mean?

Tax code 0T means you receive no Personal Allowance from this employer, so all your income is taxable from the first pound. Unlike BR (which uses a flat 20%), 0T applies the normal tax bands: 20% up to £50,270, 40% from £50,271 to £125,140, and 45% above that. For lower salaries this gives the same result as BR, but for salaries above £50,270, 0T taxes more than BR and less than D0.

Who gets tax code 0T?

People starting a new job without a P45, those who haven't returned a starter checklist, or where HMRC has withdrawn the Personal Allowance pending further information. It can also apply when all your allowances have been used up — for example if you have untaxed income equal to or greater than your Personal Allowance from another source.

How much do I take home on tax code 0T earning £30,000?

On tax code 0T with a £30,000 salary, you take home £22,606 per year (£1,884 per month) after Income Tax of £6,000.

Is tax code 0T correct for me?

Your tax code is set by HMRC based on your individual circumstances. If you believe your tax code is wrong, contact HMRC on 0300 200 3300 or check your Personal Tax Account at gov.uk. An incorrect code could mean you are paying too much or too little tax.

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Related pages:

All Tax Codes Income Tax Rates National Insurance £30,000 After Tax £50,000 After Tax