What tax code D0 actually means
Higher Rate on everything: a flat 40% with no allowance — the second-job code for higher earners.
D0 taxes every pound from this employer or pension at the 40% higher rate, with no personal allowance and no 20% band. It's the counterpart to BR for people whose main income already fills the basic rate band: if your main job takes you past £50,270, a second income belongs entirely in the 40% band, and D0 collects exactly that. On £30,000 of second income, D0 deducts £12,000.00.
- Personal allowance
- £0 against this income
- Applies in
- England, NI & Wales (SD0 in Scotland uses Scottish rates)
- Calculation
- Usually cumulative
See this salary on a different tax code → (opens the main calculator pre-filled with D0)
What does D0 mean?
Your personal allowance and your 20% band can each only be used once across all your income. If your main employment already consumes both — any salary above £50,270 does — then every pound of a second income sits in the higher-rate band, and a flat 40% code is the accurate way to tax it at source.
D0 becomes wrong at the edges: if your combined income crosses £125,140, the second income should really bear 45% (that's D1's job), and if your main income drops below the higher-rate threshold, D0 over-collects. HMRC adjusts codes when your estimates change, but it's worth checking your PAYE income estimates in your personal tax account after any pay change.
When you’ll see D0
- A second job while your main salary is already above £50,270.
- A pension drawn alongside a higher-rate salary.
- Directors or consultants with a salaried main role and a second PAYE engagement.
D0 vs other common codes
| Code | Personal allowance | How income is taxed |
|---|---|---|
| 1257L | £12,570 | Standard bands after the allowance |
| BR | £0 | Flat 20% on everything |
| 0T | £0 | Normal bands from the first pound |
| D0 | £0 | Flat 40% on everything |
D0 questions, answered
Related tax codes
1257L
The standard code for 2025/26 — a £12,570 tax-free personal allowance, applied evenly across the year.
Decode itEmergency tax (W1/M1/X)
Usually a 1257L code with a W1, M1 or X suffix — each payday taxed in isolation until HMRC confirms your details.
Decode itBR
Basic Rate on everything: 20% from the first pound, no personal allowance — normal for second jobs and pensions.
Decode it0T
Zero allowance, but normal bands: 20%, then 40%, then 45% — from the very first pound you earn.
Decode itScottish tax codes (S)
An S at the front of your code means Scottish rates: six bands from 19% to 48% in 2025/26.
Decode itK codes
The code that works in reverse: instead of tax-free pay, a K code adds to your taxable income.
Decode itNot sure this is the right code for you?
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Sources: tax codes — gov.uk · income tax rates · Scottish income tax