0T Tax Code: No Allowance and How to Check It

0T means no allowance is given at this employment. It does not mean the whole income is taxed at one rate: the normal progressive bands still apply.

In England and Northern Ireland in 2026/27, the annual taxable bands are 20% on the first £37,700, then 40% up to £125,140 and 45% above that. Wales uses C0T at the same rates; Scotland uses S0T with Scottish bands. Cumulative PAYE uses bands available to date; M1/W1 uses one period's bands.

By comparison, BR taxes all affected pay at 20%. At £40,000 a year, this produces £8,000 tax under BR versus £8,460 under 0T, before considering whether either code is appropriate.

0T can reflect an allowance used elsewhere, an allowance fully withdrawn at £125,140 adjusted net income, or missing starter information. An employer without a P45 or completed starter declaration may need to use 0T W1/M1 under the starter rules.

Neither being a director nor receiving irregular pay automatically requires 0T. Check your actual coding notice and HMRC's income and employment records.

A taxable payment from an old employer after it has issued your P45 normally uses 0T on a week 1 or month 1 basis. Scotland uses S0T and Wales C0T. This can apply to later wages, holiday pay or a bonus even if your usual code included an allowance. It does not by itself mean your annual Personal Allowance has disappeared.

HMRC says PAYE uses your normal pay period. Check this separately from NI and loan deductions: an irregular payment after the contract ends can use a weekly earnings period for those deductions even when PAYE uses month 1.

Keep the written payment breakdown with your P45; the employer should not issue another P45 for that later payment. Read the final-payslip checklist for wages, holiday and other deductions.

• BR: 20% on all affected pay, without an allowance.
• 0T cumulative: no allowance, with progressive bands applied to pay to date and credit for earlier tax.
• 0T M1/W1: no allowance, with one month's or week's tax bands. It does not use the whole year's bands against a single payment.

For steady pay with consistent earlier deductions, cumulative and non-cumulative 0T can give similar deductions. Earlier low pay, gaps or variable earnings can make the result different.

Assume England, 2026/27 and £3,750 monthly pay. A simplified 0T M1 calculation is:

• No allowance: the full £3,750 is taxable.
• £37,700 ÷ 12 at 20%: approximately £628.33.
• The remaining £608.33 at 40%: approximately £243.33.
• Total: approximately £871.67, using unrounded intermediate figures.

For a full year of steady £45,000 pay with standard allowance entitlement, annual tax is £6,486, or £540.50 monthly equivalent. The difference is about £331.17 a month. These are illustrations: a new starter's actual cumulative deduction or refund requires earlier pay and tax, the code, tax month and any adjustments.

View the standard £45,000 salary estimate or use the refund guide if HMRC confirms an overpayment.

Illustrative 2026/27 Income Tax estimates, checked 3 November 2026. These compare ordinary taxable earnings in England or Northern Ireland. Wales uses C0T at the same rates; Scottish S0T needs different bands. There is no allowance and no pension, benefit or other adjustment.

For £1,000 on week 1, the first £725 is taxed at 20% (£145) and the remaining £275 at 40% (£110): £255 altogether. On month 1, the same £1,000 stays within that month’s basic-rate band, giving £200. The £55 difference comes from the available band, not a different 0T rate.

Method: multiply each payment by 12 for monthly pay or 52 for weekly pay, apply the 2026/27 taxable bands (£37,700 at 20%, then 40% up to £125,140 and 45% above), and divide the tax by the same period count. Round the final estimate to two decimal places. Payroll table methods and period rounding can differ; these are not exact cumulative payslip calculations or total take-home figures. NI and other deductions are separate.

Use your actual normal pay period; it is not a choice between the two columns. Download all eight illustrative calculations (CSV). The file also labels pay after Income Tax as before other deductions.

Ask for the payment date, taxable amount, PAYE deducted and confirmation that it was recorded as pay after leaving. Then ask: “Which normal PAYE pay period did you use for 0T, and did NI or loan deductions use a different period?” This separates a code question from a payment calculation.

Compare the statement with your HMRC Income Tax record. A later payment under 0T does not establish a refund: HMRC needs the full-year income and tax position. For an ordinary ongoing job, use the correction steps below.

Give payroll your P45 if available. The starter checklist supplies details before your first payment; its declaration can lead to cumulative, non-cumulative or flat-rate treatment, not always cumulative 1257L.

After you have been paid, HMRC says not to use a starter checklist. Use Check your Income Tax to review your code and correct your details. Ask payroll which starter information it used. For a new job, follow up if the code is still wrong after 35 days. If 0T correctly reflects no remaining allowance, there may be no error to correct.

A corrected cumulative code with complete records may produce an in-year refund. The code basis, payroll cut-off, earlier tax and your circumstances determine the outcome; there is no guaranteed next-payday refund.