0T, 0T-W1 and 0T-M1

Nearly everyone is entitled to a tax-free personal allowance, which means that a certain amount of your earnings each year are paid to you without being taxed.

However, 0T tax codes mean that you do not receive any personal allowance with this employment. Instead, you pay tax on all of your income.

The amount of tax due is calculated as follows:

If you live in England, Wales or Northern Ireland

Any earnings over and above your personal allowance will be taxed as follows:

  • 20% on earnings up to £37,500
  • 40% on earnings between £37,501 and £150,000 
  • 45% on earnings above £150,000

If you live in Scotland

Any earnings over and above your personal allowance will be taxed as follows:

  • 19% on earnings up to £2,049
  • 20% on earnings between £2,086 and £12,658
  • 21% on earnings between £12,659 and £30,930
  • 41% on earnings between £30,931 and £150,000
  • 46% on earnings above £150,000

This code is applied if we are unaware of your current tax situation, so please contact us in case we are awaiting further clarification from you. In the meantime, HMRC requires us to automatically place you on 0T, 0T-W1 or 0T-M1.

If your code has W1 or M1 attached, it means you’re on a non-cumulative tax code.

 These figures are correct for the 2020/21 tax year.