Tax Codes
D0 Tax Code: What It Means and Why You Pay 40% Tax
D0 means all your income under that code is taxed at the higher rate of 40% (outside Scotland). It is often used for a second job or pension when your main income already uses your allowance.
Last reviewed 10 November 2026 · Written by the Right Choice Consulting team
What does D0 mean?
The D0 code has no tax-free allowance and taxes all income paid under it at the higher rate. It is usually applied to additional income where HMRC expects you to be a higher-rate taxpayer overall. Scotland uses its own Income Tax bands and different codes.
| Code | Effect |
|---|---|
| BR | All income taxed at the basic rate |
| D0 | All income taxed at the higher rate |
| D1 | All income taxed at the additional rate |
| 0T | No allowance; tax by bands from the first pound |
When is D0 correct?
If your main job already uses up your basic-rate band and your allowance, a second job or pension may correctly be taxed at 40%. If your total income is lower, you might be paying more than needed, and a different code such as BR could apply.
How to check you are not overpaying
- Add up all income across jobs and pensions.
- Compare it with the basic-rate band for the year.
- Check HMRC’s estimate in your personal tax account.
- If it is wrong, ask HMRC to update the code or include the income in a Self Assessment return.
Reclaiming overpaid tax
If D0 results in overpaid tax, you can ask HMRC to correct the code and refund the difference, or claim through Self Assessment where relevant.
Sources
This article is general information based on UK rules as understood at the review date above. It is not personal tax or legal advice. Rates, thresholds and rules change; confirm the position for your situation with an accountant or on GOV.UK.