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Understanding what the 0T tax code means and how to fix it

July 2024

Reviewed by Connor Masters ATT, Senior Tax Specialist at RIFT Tax Refunds

A tax code is a string of letters and numbers that tells your employer how your earnings should be taxed. You get one for each job you have, and it’s important to keep note of them.

If you’ve got the tax code 0T, it usually means you're not getting any personal allowance. This is often due to starting a new job or having multiple incomes.

Understanding this code will help you to avoid overpaying tax. Let’s get into what the 0T tax code means, with tips on how to fix it.

What does the 0T tax code means?

Everybody has something called a personal allowance. This is the amount of money you’re allowed to earn each tax year before you have to start paying income tax.

The 0T tax code is used by HM Revenue & Customs (HMRC) when your income isn’t entitled to any personal allowance.

This could be for a couple of reasons:

HMRC doesn’t have enough information about your income
You’ve used up your personal allowance elsewhere - another job, for example

This tax code taxes your income at basic, higher or additional rates without any personal allowance. If you’ve received an 0T code, knowing why will make the process simpler.

Common issues with the 0T tax code

Let’s say you started a new job in the middle of the tax year. You might get hit with a 0T tax code. Maybe you have multiple income streams and get another 0T tax code for each one.

The 0T code is a bit like a placeholder in the tax world. It often pops up when HMRC doesn’t have the full details about your earnings, but having the wrong tax code can cause some issues for you.

Overpaying taxes reduces your take-home pay
Underpaying means you’ll face a hefty bill later on

Making sure your tax code is correct is so important. Don’t pay more – or less – than you owe to avoid these issues. Keep an eye on your payslips and catch those 0T codes early.

How to fix issues with the 0T tax code

So, you've received a 0T tax code - how do you fix it?

1) Check your tax code

Use online services such as this gov.uk tax code checker to see details of your tax code and personal allowance.

2) If it's wrong, contact HMRC

If your tax code is wrong, tell HMRC as soon as possible. The simplest way is to give them a call on 0300 200 3300. This way you can fix the issue by speaking to a human and asking any questions you have.

Alternatively you can let them know about your incorrect tax code via your personal tax account. You’ll need to log in or register using your Government Gateway ID. You can also use the HMRC app, if you find that easier.

3) Update your info

Update all your personal information, such as employment details and additional income sources, using HMRC’s website or helpline. Keeping your details up to date and accurate will help HMRC assign the correct tax code to you.

4) Regularly review your tax code

Keep checking your tax code, especially if you change jobs or your income shifts. The last thing you want is to be over or underpaying taxes. Keep an eye on your tax code to keep things smooth and hassle-free.

Think you might be owed a tax refund?

It costs nothing to find out what you’re owed. We can help you get back your hard-earned money. Use our tax rebate calculator to find out how much you could be missing out on.

0T tax code - FAQs

Is 0T an emergency tax code?

The 0T tax code is not considered an emergency tax code. An emergency tax code is a temporary code that’s given when your employer doesn’t have enough information to calculate your tax correctly.

You’ll receive an 0T code if your personal allowance has been used elsewhere or you’re starting a new job, and the necessary details aren’t available. So while it might feel like an emergency tax code, it isn’t.

Will I get my 0T tax back?

If you’ve been incorrectly assigned an 0T tax code then there could be a tax rebate waiting for you. If you’ve overpaid tax under the 0T code, HMRC may refund you automatically.
Connor Masters ATT, Senior Tax Specialist at RIFT adds:

In this case, you’ll receive a P800 calculation. It will tell you how much you’re owed back and this money will typically be sent directly to your bank. However, at RIFT we specialise in claiming back overpaid tax on work expenses that HMRC won’t necessarily know about. This will be things like travel, food, accommodation, laundry etc. If this applies to you get in touch and we can check if you’re owed anything.

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Understanding what the 0T tax code means and how to fix it​