D0 Tax Code Meaning (2026/27) — 40% Higher Rate Deductions
A D0 tax code deducts a flat 40% Higher Rate Income Tax (42% in Scotland under SD0) on every pound of income from this employment or pension with £0 tax-free Personal Allowance. HMRC issues D0 for a second job, consultancy role, or pension when your main salary already exceeds £50,270.
| Secondary Job / Pension Gross Pay | Annual Tax on D0 (40% Flat) | Monthly Net Pay After 40% Tax |
|---|---|---|
| £10,000 Second Job / Board Fee | £4,000.00 / yr (£333.33/mo) | £500.00 / month (before NI) |
| £25,000 Secondary Income | £10,000.00 / yr (£833.33/mo) | £1,250.00 / month (before NI) |
| £45,000 Salary on D0 | £18,000.00 / yr (£1,500.00/mo) | £2,033.80 / month (after 40% Tax & NI) |