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%).
What does tax code SD0 mean?
Tax code SD0 taxes all income from this source at 19%, Scotland's Starter rate, with no Personal Allowance. This is 1% cheaper than SBR or BR per pound earned. HMRC applies it when second-job income falls into the lowest Scottish band.
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.
Tax code SD0 vs 1257L: take-home comparison
How much more or less you take home on SD0 compared to the standard 1257L code at the same gross salary. A negative number means less take-home pay.
| Gross Salary | 1257L Take-Home | SD0 Take-Home | Difference |
|---|---|---|---|
| £20,000 | £17,920 | £15,606 | -£2,314 |
| £25,000 | £21,520 | £19,256 | -£2,264 |
| £30,000 | £25,120 | £22,906 | -£2,214 |
| £35,000 | £28,720 | £26,556 | -£2,164 |
| £40,000 | £32,320 | £30,206 | -£2,114 |
| £45,000 | £35,920 | £33,856 | -£2,064 |
| £50,000 | £39,520 | £37,506 | -£2,014 |
| £60,000 | £45,357 | £45,389 | +£32 |
| £75,000 | £54,057 | £57,239 | +£3,182 |
| £100,000 | £68,557 | £76,989 | +£8,432 |
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 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.
How do I change tax code SD0?
To change tax code SD0, 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 SD0 was applied in error?
If tax code SD0 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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