D0 Tax Code Meaning
The D0 tax code means all your income is taxed at 40% higher rate. Learn when it's used and how it affects your take-home pay.
What Does D0 Mean?
D0 stands for 'Higher Rate' (the 'D' represents the 40% tax band) and means all your income from this source is taxed at 40% with no Personal Allowance applied. This code is used when HMRC knows your total income will place you in the higher rate tax bracket.
How D0 Tax Code Works
With a D0 tax code, your employer deducts 40% Income Tax from every pound you earn, plus National Insurance contributions. This is typically used for additional income sources when your main employment already uses your Personal Allowance and pushes you into the higher rate bracket.
How D0 Affects Your Take-Home Pay
Example: £20,000 (second job, main job earns £60,000)
- Personal Allowance: £0 (used on main job)
- Taxable income: £20,000
- Income Tax (40% on all earnings): £20,000 × 40% = £8,000
- National Insurance: ~£1,844
- Total deductions: £9,844
Take-home pay: £10,156 per year (£846 per month)
When is D0 Tax Code Used?
- •Your total income exceeds £50,270 (the higher rate threshold)
- •You have a second job and your main job already uses your full allowance
- •HMRC knows your combined income puts you in the 40% tax bracket
- •You receive multiple pensions or income sources
How to Check Your Tax Code
You can find your current tax code in several places:
- •Payslip: Look at the top of your monthly payslip
- •HMRC online: Sign in to your personal tax account at gov.uk
- •P60: Your end-of-year certificate from your employer
- •PAYE Coding Notice: Letter from HMRC when your code changes
Calculate Your Take-Home Pay
See exactly how D0 affects your salary with our free calculator