UK Tax Codes · 2026/27
D0 Tax Code Meaning — Higher Rate (UK 2026/27)
Who gets the D0 tax code?
D0 is most commonly applied to a second job when your main job's income takes you into the higher-rate band, or to occupational pensions where the recipient is already a higher-rate taxpayer. Occasionally HMRC applies D0 temporarily when employer information is incomplete, but it's unusual.
How D0 affects your pay
Every pound of D0 income is taxed at 40%. No personal allowance, no basic-rate band — straight to higher rate. This is correct only if your other income has already used up the personal allowance (£12,570) and basic-rate band (next £37,700). Total threshold for D0 to be appropriate is when other income exceeds £50,270.
When to check this code
Check D0 if you start a second job, you've recently moved into the higher-rate band, you have multiple income sources, or you're approaching retirement and pension drawdowns are starting. D0 on the wrong source can result in significant overpayment.
What to do if it's wrong
If D0 is applied to your main income, contact HMRC immediately — this is almost certainly wrong. If D0 is on your second income but your total earnings are below £50,270, ask HMRC to recalculate. They'll typically issue a refund for any overpaid tax and adjust the code going forward.
Example calculation
On £15,000 from a D0-coded second job (when main job is £55,000): D0 takes 40% × £15,000 = £6,000 in tax from this income. This is correct because the main job has used the personal allowance + basic-rate band. Total taxable income (£70,000) would have £6,000 of higher-rate tax even without the second job — the D0 just collects it from the second source efficiently.
Recruiter pro tip
D0 is correct when your combined income is over £50,270. The danger is if you reduce hours or change jobs and become a basic-rate taxpayer overall — D0 will then over-collect. Always update HMRC immediately if your circumstances change, otherwise the over-collection continues for months until the next tax year reconciliation.
Related tax codes
D1 — Additional Rate
D1 means all income from this source is taxed at the additional rate (45%) with no personal allowance applied.…
BR — Basic Rate
BR stands for 'Basic Rate' — meaning all your income from this job is taxed at 20%, with no personal allowance…
1257L
1257L is the standard UK tax code for 2026/27. It means you're entitled to the full £12,570 personal allowance…