UK tax codes · 2026/27 tax year
D0 tax code: what it means
D0 means all your pay from that job or pension is taxed at the higher rate of 40%, with no tax-free amount. GOV.UK says it is usually used when you have more than one job or pension: your main job uses your allowance and basic rate band, so the extra income is all in the 40% band. A second job paying £10,000 on D0 costs £4,000 a year in tax, against £2,000 on BR.
Tax code rules checked against GOV.UK and HMRC's PAYE Manual on .
Tax-free pay
£0
at this job
Rate
40%
21% on SD0 in Scotland
Tax on £10,000
£4,000
second job
Tax on £25,000
£10,000
vs £2,486 on 1257L
Second job pay on BR and D0
What a second job costs in tax when your main job already takes you into the higher band.
| Second job pay | Tax on BR | Tax on D0 | Extra on D0 |
|---|---|---|---|
| £5,000 | £1,000 | £2,000 | £1,000 |
| £10,000 | £2,000 | £4,000 | £2,000 |
| £20,000 | £4,000 | £8,000 | £4,000 |
D0 and SD0 compared with 1257L
If the whole salary were taxed under each code, 2026/27. This shows why D0 on a main job is almost always wrong.
| Salary | Tax on D0 | Tax on SD0 (Scotland) | Tax on 1257L | Extra on D0 |
|---|---|---|---|---|
| £25,000 | £10,000 | £5,250 | £2,486 | £7,514 |
| £40,000 | £16,000 | £8,400 | £5,486 | £10,514 |
| £60,000 | £24,000 | £12,600 | £11,432 | £12,568 |
Who gets D0
Someone whose main job or pension already uses their £12,570 allowance and the basic rate band, so any other employment income is taxed at 40%. HMRC's manual says to use D0 when tax is due at the higher rate and all allowances are given elsewhere.
SD0 is not 40%
In Scotland, SD0 taxes everything at the intermediate rate of 21%, the first band above the basic rate. The Scottish 42% higher rate uses SD1. CD0 in Wales is 40%, the same as D0.
Week 1 / month 1 by default
HMRC's manual says its system defaults D0 to the week 1 / month 1 basis, where each payment is taxed on its own and no refunds are made. It can also be issued on the cumulative basis.
If your main job pay falls
If your main job pay drops below £50,270, or you leave it, D0 on the other job will take too much. Tell HMRC through your personal tax account or the HMRC app so the codes can be rebalanced.
If you think this code is wrong
D0 on your only or main job means you get no allowance and pay 40% on everything; that is almost never right. Sign in to HMRC's Check your Income Tax service (gov.uk/check-income-tax-current-year) and check your jobs, pensions, benefits and expenses. HMRC then tells you and your employer any new code within 15 working days; it should show on your next or following payslip if you are paid monthly, or your third if weekly. If you cannot go online, call the Income Tax helpline on 0300 200 3300 (Monday to Friday, 8am to 6pm). After starting a new job, wait 35 days before calling.
Guides and definitions
- High Income Child Benefit Charge: how it is worked out and cut (Guide)
- How to read your payslip: every line explained, with an example (Guide)
- Emergency tax: how it works and how to get your money back (Guide)
- Emergency tax code (An emergency tax code, marked W1, M1 or X, taxes each payday on its own, as if you were paid that amount every period of the year.)
- P11D (A P11D is the form UK employers send HMRC by 6 July to report each employee's taxable benefits and expenses that were not taxed through payroll.)
- P60 (A P60 is the yearly summary of your pay and tax from one employer, due by 31 May if you work there on 5 April.)
- Personal Allowance (The Personal Allowance is the income you can earn each UK tax year before Income Tax starts: £12,570 for 2026/27.)
- Tax code (A UK tax code tells your employer or pension provider how much tax-free pay to give you; 1257L, meaning £12,570, is the most common.)
Other tax codes explained
- 1257L tax code (Standard tax-free allowance of £12,570 on one job or pension)
- Emergency codes (W1, M1, X) tax code (Emergency basis: each payment taxed on its own)
- S1257L tax code (Standard allowance, taxed at Scottish rates)
- C1257L tax code (Standard allowance, taxed at Welsh rates)
- 1257M / 1383M tax code (You receive £1,260 of Marriage Allowance from your partner)
- 1257N / 1131N tax code (You transfer £1,260 of Marriage Allowance to your partner)
- BR tax code (All pay taxed at the 20% basic rate, no allowance)
- 0T tax code (No tax-free pay; all pay taxed through the bands)
- D1 tax code (All pay taxed at the 45% additional rate)
- SD0, SD1, SD2, SD3 tax code (Scottish flat-rate codes at 21%, 42%, 45% or 48%)
- K codes tax code (Untaxed income or deductions bigger than your allowance)
- NT tax code (No tax taken from this job or pension)
Every UK tax code in one table · Salary after tax calculator · Check your own tax code and pay
Common questions
What does D0 mean in a tax code?
GOV.UK says D0 means all your income from that job or pension is taxed at the higher rate, usually because you have more than one job or pension. For 2026/27 the higher rate is 40% in England, Wales and Northern Ireland.
Why is my second job taxed at 40%?
Because your main job already uses your allowance and your basic rate band, which ends at £50,270 of total pay. Any extra employment income is in the 40% band, so HMRC gives the second job D0 to collect it as you go rather than in a bill later.
How much tax will I pay on D0?
40% of everything that job pays. £5,000 costs £2,000, £10,000 costs £4,000 and £20,000 costs £8,000 a year. National Insurance is worked out separately for each job.
What is SD0 in Scotland?
SD0 taxes all pay from that job at the Scottish intermediate rate, which is 21% for 2026/27. A Scottish taxpayer whose other income reaches the 42% band would usually get SD1 instead.
What if D0 is on my main job?
Then you are paying 40% on all of it with no allowance. On £25,000 that would be £10,000 instead of £2,486. Check your details online or call the Income Tax helpline on 0300 200 3300.
Sources and assumptions
- Income Tax for the 2026/27 tax year (6 April 2026 to 5 April 2027), with the same pay every payday for the whole year.
- The code number is read as GOV.UK describes it: the tax-free amount with the last digit dropped (1257 = £12,570). Payroll tables can differ by a few pounds.
- National Insurance, pension contributions and student loans are not included unless a table says so.
- GOV.UK: Tax codes, what your tax code means
- GOV.UK: If you think your tax code is wrong
- GOV.UK: Income Tax rates and Personal Allowances
- GOV.UK: How tax works if you have more than one job
- HMRC PAYE Manual PAYE11015: codes for special cases
- GOV.UK: Income Tax enquiries (HMRC contact)
These are estimates to help you read your tax code, not tax advice. HMRC and your employer's payroll decide the tax you actually pay.