What does the 0T tax code mean?

Full answer

The **0T tax code** (zero-T) means no Personal Allowance is applied — every pound of your earnings is taxable, starting from the first band. **When 0T is used:** - You started a new job without providing a P45 or completing a **Starter Checklist (P46)** - Your Personal Allowance has been used up by another source of income (e.g. two jobs with combined income much higher than PA) - HMRC has instructed 0T pending full information - Savings income from banks (taxed at source in some cases) **0T vs BR — what's the difference?** | Code | Meaning | |---|---| | **BR** | Basic rate only — all earnings taxed at flat 20% | | **0T** | Full band structure applies — 20% then 40% then 45% as earnings rise, with no PA | So 0T is more expensive than BR for higher earners, as it applies higher-rate bands without any allowance. **0T W1/M1 variant:** The **W1 (week 1) or M1 (month 1)** suffix means the code is **non-cumulative** — each pay period is taxed in isolation rather than cumulatively. This prevents automatic refunds from building up, but also means over-taxation isn't corrected until the end of the year. **How to fix an 0T code:** 1. **Submit a Starter Checklist** (new starter declaration) to your employer immediately 2. If you have a P45 from your previous employer, give it to your new employer 3. Contact HMRC on **0300 200 3300** if the code persists **Reclaiming overpaid tax:** HMRC runs an automatic year-end reconciliation (**P800**) for PAYE taxpayers. If you overpaid due to 0T, a P800 refund notice is typically issued by October following the tax year end.

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