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.
What does tax code 0T mean?
Tax code 0T removes your Personal Allowance entirely, but income is still taxed through the normal bands (20%, 40%, 45%). Below £50,270, the result is the same as BR. Above that, 0T costs more because higher rate bands apply.
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People starting a new job without a P45, those who haven't returned a starter checklist, or where HMRC has withdrawn the Personal Allowance pending further information.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.
Tax code 0T vs 1257L: take-home comparison
How much more or less you take home on 0T compared to the standard 1257L code at the same gross salary. A negative number means less take-home pay.
| Gross Salary | 1257L Take-Home | 0T Take-Home | Difference |
|---|---|---|---|
| £20,000 | £17,920 | £15,406 | -£2,514 |
| £25,000 | £21,520 | £19,006 | -£2,514 |
| £30,000 | £25,120 | £22,606 | -£2,514 |
| £35,000 | £28,720 | £26,206 | -£2,514 |
| £40,000 | £32,320 | £29,806 | -£2,514 |
| £45,000 | £35,920 | £33,406 | -£2,514 |
| £50,000 | £39,520 | £37,006 | -£2,514 |
| £60,000 | £45,357 | £42,843 | -£2,514 |
| £75,000 | £54,057 | £51,543 | -£2,514 |
| £100,000 | £68,557 | £66,043 | -£2,514 |
Both columns include Income Tax and National Insurance. No pension or student loan deductions. 1257L = standard Personal Allowance of £12,570.
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.
How do I change tax code 0T?
To change tax code 0T, contact HMRC directly on 0300 200 3300 or update your details via your Personal Tax Account at gov.uk. Your employer cannot change your tax code — only HMRC can issue a new one. Once HMRC updates your code, they will notify your employer and the change will appear on your next payslip.
Will I get a refund if tax code 0T was applied in error?
If tax code 0T was applied incorrectly and caused you to overpay Income Tax, HMRC will refund the overpayment. This typically happens automatically via a P800 tax calculation sent after the tax year ends (April). For a faster refund, contact HMRC directly once the correct code has been issued. Overpayments can also be reclaimed through Self Assessment if you file a return.
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