Answers · UK 2025/26

What is a D0 tax code and why have I been given one?

A D0 tax code means all your income from that job or pension is taxed at the Higher Rate (40%), with no Personal Allowance applied. It is typically used for a second job or pension when your main income already uses your Personal Allowance and pushes your total earnings into the higher-rate band.

Last updated: 3 July 2026Last reviewed: 3 July 2026How we verify

Full answer

A D0 tax code applies a flat 40% Income Tax rate to every pound earned from that particular source, with no tax-free Personal Allowance and no basic rate band -- it is the higher-rate equivalent of a BR code. HMRC typically issues a D0 code for a second job or pension where your combined income across all sources means the earnings from that specific job would, if taxed correctly, fall entirely within the 40% higher-rate band once your main income has already used up your Personal Allowance and basic rate band. For example, someone earning £55,000 in their main job (which uses their full Personal Allowance and basic rate band, and starts drawing into the higher rate) who also does freelance consultancy work taxed through PAYE as a second "job" might be given a D0 code for that second source, so that HMRC collects the correct 40% tax on it without you needing to wait for a Self Assessment reconciliation at the end of the year. There is also a rarer D1 code, which applies the 45% additional rate in the same way, used when your combined income is high enough that the second source of income would fall entirely within the additional-rate band. If you believe a D0 code has been applied incorrectly -- for example, if your main job income is lower than HMRC's records suggest, or if a previous job has ended -- you should update your details via your personal tax account or contact HMRC, since an incorrect D0 code can result in significant overpayment of tax on income that should actually be taxed at 20% or even 0%.