0T Tax Code: What It Means and How to Reclaim Overpaid Tax

If your payslip shows the 0T tax code, it means you are being taxed with no tax free Personal Allowance at all. The 0T code often leads to overpaying tax, and the good news is that overpaid tax can usually be reclaimed. This guide explains what 0T means, why you might be on it, and what to do.

What does the 0T tax code mean?

The 0T code (zero followed by the letter T) means none of your tax free Personal Allowance is being applied to your income. Your earnings are taxed from the very first pound, at the basic, higher or additional rate depending on how much you earn.

Unlike the standard 1257L code, which gives you £12,570 tax free, 0T gives you nothing tax free, so it almost always means you pay more tax than normal.

Why am I on a 0T tax code?

Common reasons for a 0T code include:

• You started a new job and did not give your employer a P45 or the right details, so HMRC could not apply your allowance.
• You have used up your Personal Allowance elsewhere.
• HMRC does not have enough information about your income.
• It has been applied as an emergency measure when you started drawing a pension.

In many of these cases, 0T is temporary and should be corrected, but it is not always put right automatically, which is when you overpay.

How 0T causes overpayment

Because 0T applies no tax free allowance, you are taxed on income that should have been tax free. If your only job is on 0T, you are paying tax on the first £12,570 you earn when you should not be. Over a year, that adds up quickly.

How to fix it and reclaim overpaid tax

Check your payslip and your HMRC Personal Tax Account to see why 0T was applied. Giving HMRC the correct details (such as your P45 from a previous job) usually lets them apply your allowance and put you on the right code. Any tax you overpaid while on 0T can normally be reclaimed, including for past years within the four year window.

Frequently asked questions

Is 0T an emergency tax code?

0T is one of the codes HMRC uses on an emergency or temporary basis, particularly when it lacks your details. It typically means you overpay until corrected.

What is the difference between 0T and BR?

BR taxes everything at basic rate (20 percent) with no allowance. 0T also applies no allowance, but taxes across basic, higher and additional rates depending on your earnings, so higher earners can be hit harder.

Will my 0T code correct itself?

Sometimes, once HMRC has your details. But it does not always happen automatically, so it is worth checking and reclaiming any overpaid tax.

Can I get the overpaid tax back?

Yes. Tax overpaid because of a 0T code can usually be reclaimed.

Reclaim what a 0T code has cost you

If you have been taxed with no allowance under 0T, you have very likely overpaid and can claim it back.

Start your claim with TaxPro and we will check your tax code and reclaim what you are owed, on a no win, no fee basis.