Tax Code SD0 Explained
SD0 is a Scottish flat-rate code that taxes all income from this source at Scotland's Starter rate of 19% — with no Personal Allowance. It sits below Scotland's Basic rate (SD1) and is used when additional income falls into the lowest Scottish taxable band. The 19% Starter rate is unique to Scotland; England has no equivalent (the nearest is BR at 20%).
Who gets tax code SD0?
Scottish residents whose second or additional income source falls into the Starter rate band. This is relatively unusual as a standalone code — more often, HMRC will use SBR (20%) for second jobs. SD0 may be applied when specific information about income levels indicates that the Starter rate applies to the additional income.
Scottish Income Tax: Scotland sets its own income tax rates. For 2025-26, Scottish rates diverge meaningfully from England above ~£30,000 — the 42% Higher rate kicks in at £43,663 versus £50,270 in England. National Insurance is the same as the rest of the UK.
Take-home pay on tax code SD0 — 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 | £3,800 | £594 | £15,606 | 19.0% |
| £25,000 | £4,750 | £994 | £19,256 | 19.0% |
| £30,000 | £5,700 | £1,394 | £22,906 | 19.0% |
| £35,000 | £6,650 | £1,794 | £26,556 | 19.0% |
| £40,000 | £7,600 | £2,194 | £30,206 | 19.0% |
| £45,000 | £8,550 | £2,594 | £33,856 | 19.0% |
| £50,000 | £9,500 | £2,994 | £37,506 | 19.0% |
| £60,000 | £11,400 | £3,211 | £45,389 | 19.0% |
| £75,000 | £14,250 | £3,511 | £57,239 | 19.0% |
| £100,000 | £19,000 | £4,011 | £76,989 | 19.0% |
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.
If you have tax code SD0, 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 SD0 mean?
SD0 is a Scottish flat-rate code that taxes all income from this source at Scotland's Starter rate of 19% — with no Personal Allowance. It sits below Scotland's Basic rate (SD1) and is used when additional income falls into the lowest Scottish taxable band. The 19% Starter rate is unique to Scotland; England has no equivalent (the nearest is BR at 20%).
Who gets tax code SD0?
Scottish residents whose second or additional income source falls into the Starter rate band. This is relatively unusual as a standalone code — more often, HMRC will use SBR (20%) for second jobs. SD0 may be applied when specific information about income levels indicates that the Starter rate applies to the additional income.
How much do I take home on tax code SD0 earning £30,000?
On tax code SD0 with a £30,000 salary, you take home £22,906 per year (£1,909 per month) after Income Tax of £5,700.
Is tax code SD0 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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