Why am I on an emergency tax code?

What changes for you

1. Your code follows your P45, or it does not

   Without a P45 the employer uses a starter declaration, and the wrong answer on it produces an emergency code. Emergency codes tax you as if you had no allowance used elsewhere — sometimes too much, sometimes too little.

2. Overlapping jobs almost always go wrong

   Two employments at once means one gets the allowance and the other should be on a BR or D0 code. When both get an allowance you underpay, and HMRC collects it later.

3. Benefits change the code, not the payslip

   A company car or medical insurance is collected by reducing your tax code, so the deduction appears as more tax on the same salary.

4. Overpaid tax comes back within the year

   Once the correct cumulative code is applied, the overpayment is refunded through payroll automatically. Waiting for a P800 after the year end means waiting months longer than necessary.

The decisions this opens up

Each works on your own figures and shows every option with the workings. Free, and no sign-up.

Dates this puts in your diary

• Your first paydayGive the employer your P45 or complete the starter checklist
• As soon as the code looks wrongCorrect it — an overpayment refunds through payroll within the year

Run the numbers