Tax Code D0 Explained
Tax code D0 means all income from this source is taxed at the higher rate of 40% — with no Personal Allowance and no basic rate band. It is used when your other income already fills the entire basic rate band (earnings between £12,571 and £50,270). Every pound from this source goes straight into the 40% band. National Insurance still applies normally.
What does tax code D0 mean?
Tax code D0 means all income from this employer is taxed at 40% with no basic rate band and no Personal Allowance. HMRC applies this when your main job already covers the entire basic rate band up to £50,270.
Who gets tax code D0?
Workers with a second job or additional income source whose main employment already accounts for the entire basic rate band. For example, if your main salary is £55,000, your second job income would all fall above £50,270 and be taxed at D0. It can also apply to a second pension if your total income puts you in the higher rate band.
High deduction code: This code applies a high flat rate with no tax-free allowance, resulting in significantly less take-home pay than standard codes. Check that you have this code on the correct employment — it should only apply to secondary income sources.
Take-home pay on tax code D0 — 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 | £8,000 | £594 | £11,406 | 40.0% |
| £25,000 | £10,000 | £994 | £14,006 | 40.0% |
| £30,000 | £12,000 | £1,394 | £16,606 | 40.0% |
| £35,000 | £14,000 | £1,794 | £19,206 | 40.0% |
| £40,000 | £16,000 | £2,194 | £21,806 | 40.0% |
| £45,000 | £18,000 | £2,594 | £24,406 | 40.0% |
| £50,000 | £20,000 | £2,994 | £27,006 | 40.0% |
| £60,000 | £24,000 | £3,211 | £32,789 | 40.0% |
| £75,000 | £30,000 | £3,511 | £41,489 | 40.0% |
| £100,000 | £40,000 | £4,011 | £55,989 | 40.0% |
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 D0 vs 1257L: take-home comparison
How much more or less you take home on D0 compared to the standard 1257L code at the same gross salary. A negative number means less take-home pay.
| Gross Salary | 1257L Take-Home | D0 Take-Home | Difference |
|---|---|---|---|
| £20,000 | £17,920 | £11,406 | -£6,514 |
| £25,000 | £21,520 | £14,006 | -£7,514 |
| £30,000 | £25,120 | £16,606 | -£8,514 |
| £35,000 | £28,720 | £19,206 | -£9,514 |
| £40,000 | £32,320 | £21,806 | -£10,514 |
| £45,000 | £35,920 | £24,406 | -£11,514 |
| £50,000 | £39,520 | £27,006 | -£12,514 |
| £60,000 | £45,357 | £32,789 | -£12,568 |
| £75,000 | £54,057 | £41,489 | -£12,568 |
| £100,000 | £68,557 | £55,989 | -£12,568 |
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 D0, 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 D0 mean?
Tax code D0 means all income from this source is taxed at the higher rate of 40% — with no Personal Allowance and no basic rate band. It is used when your other income already fills the entire basic rate band (earnings between £12,571 and £50,270). Every pound from this source goes straight into the 40% band. National Insurance still applies normally.
Who gets tax code D0?
Workers with a second job or additional income source whose main employment already accounts for the entire basic rate band. For example, if your main salary is £55,000, your second job income would all fall above £50,270 and be taxed at D0. It can also apply to a second pension if your total income puts you in the higher rate band.
How much do I take home on tax code D0 earning £30,000?
On tax code D0 with a £30,000 salary, you take home £16,606 per year (£1,384 per month) after Income Tax of £12,000.
Is tax code D0 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 D0?
To change tax code D0, 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 D0 was applied in error?
If tax code D0 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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