Got an Emergency Tax Code? Here's how to fix it fast

There is nothing more frustrating than opening your first payslip at a new job and seeing a massive chunk of your hard-earned money missing. If your tax code looks like 0T, BR, or has W1/M1 at the end, you are on an emergency tax code.

What is emergency tax?

HMRC uses emergency tax codes when they don't have enough information about your income for the year. This usually happens because your new employer hasn't received your P45 from your old job, or you haven't completed a Starter Declaration.

How much is it costing you?

• BR code: You pay 20% tax on EVERY pound you earn. No tax-free allowance.
• 0T code: Same as BR, but it also applies higher rates (40%) if you earn enough.
• W1/M1 suffix: Your tax is calculated in a vacuum, ignoring what you've earned and paid earlier in the year.

3 Steps to fix it

1. Check your P45: Ensure your previous employer has issued it and you've given it to your new HR team.
2. Complete the Starter Declaration: If you don't have a P45, ask your manager for the HMRC Starter Checklist.
3. Call HMRC: If it's been more than two pay cycles and it's not fixed, call HMRC on 0300 200 3300. Tell them your estimated annual income and they will issue a new code to your employer electronically.

The good news? Once the code is fixed, any overpaid tax is usually refunded automatically in your next payslip. You don't have to wait until the end of the year.

Want to see what your code should be? Use our Tax Code Checker or read our guide on emergency tax explained.