If you’ve been assigned the 0T Noncum tax code and are wondering what it means, you will find detailed guidance through this blog post where we will discuss the meaning of this tax code, the reasons why it is applied and how it can be changed.
What Does The 0T Noncum Tax Code Mean?
The 0T Noncum tax code simply means two things:
- you have no tax-free Personal Allowance on your earnings (the Personal Allowance for 2022-23 is £12, 570)
- you’ve been assigned a temporary tax code that does take your entire earnings of the year into account
Tax codes are assigned by the HMRC and are made up of numbers and letters. The number indicates your tax-free Personal Allowance which is to be deducted from your earnings before an income tax rate is applied. Meanwhile, the letter indicates your situation regarding your Personal Allowance.
If someone finds the 0T Noncum tax code on their payslip it can be due to the following reasons:
- They started a new job in the middle of the tax term (the 2022-23 tax term runs from 5th April 2022 to 6th April 2023) and have yet to share their P45 or P60 form with their new employer.
- They are working at two jobs and the 0T Noncum tax code is being applied to their second job as their Personal Allowance has been entirely consumed by being applied to earnings from their first job.
- They switched jobs in the middle of the tax term and received two payslips; one from the previous employer and one from the new employer, causing the HMRC to believe that they have two jobs.
- This is their first job and they’ve not completed their starter checklist with their employer.
- Their earnings are more than £125,140; leaving them with no Personal Allowance.
Many individuals in the medical profession, especially doctors, have been known to be assigned the 0T Noncum tax code, especially when they’ve switched jobs. In most cases, this is an emergency tax code changed after a temporary issuance.
However, irrespective of whether or not you are a doctor, the 0T Noncum tax code will apply in the same way to your earnings. However, it is the income tax rate applied to your earnings that will determine the tax deduction from your income. This can either be 20%, 40% or 45%, depending on how much you earn within a tax term.
The noncumulative part of your tax code indicates that your earnings for a specific period are being taken into account for applying a tax rate, and not the entire year’s income (the usual practice for income tax deductions by HMRC is to take annual earnings into account).
This could also be because of a change in the job during a tax year or due to shifting from a self-employed or unemployed status to employment.
That said, if you think that none of these situations applies to you and you’ve been assigned the 0T Noncum tax code in error, you should inform the HMRC and get your tax code corrected to avoid being overtaxed.
Can You Overpay Taxes With The 0T Noncum Tax Code?
Yes, there is a possibility that taxpayers who are assigned the 0T tax code end up paying more taxes than they need to. However, the excess amount paid to the HMRC will be refunded by the end of the tax term when you fill in and send back the P800 form.
Taxpayers can claim a tax refund and reclaim the amount from HMRC after the end of the tax year. Such claims for overpaid taxes can be made for up to four years. This means that an overpaid tax in 2022 can be claimed until 2026.
Below are the details of how far back overpaid taxes can be reclaimed by taxpayers:
- tax refund for the tax year 2018/19 can be claimed by 5 April 2023
- tax refund for the tax year 2019/20 can be claimed by 5 April 2024
- tax refund for the tax year 2020/21 can be claimed by 5 April 2025
- tax refund for the tax year 2021/22 can be claimed by 5 April 2026
- tax refund for the tax year 2022/23 can be claimed by 5 April 2027
Once they’ve been applied for, tax refunds are usually paid by HMRC within 5 working days directly to the claimant’s UK account.
How Can You Get The 0T Noncum Tax Code Changed?
If you think you’ve been assigned the 0T Noncum tax code by mistake and need to get it changed, you can call the HMRC to check the accuracy of your tax code. You can do this by calling them at 0300 200 3300 if you are in the UK or +44 135 535 9022 if you are outside the UK. Calls are received by them from Monday to Friday, between 8 am and 6 pm.
You will also find help in the HMRC app or the HMRC online services. Alternatively, you can also write to them at the following address:
Pay As You Earn and Self Assessment
HM Revenue and Customs
BX9 1AS
United Kingdom
Once they have acquired the necessary details from you, your tax code will be changed by the HMRC. They will also inform your employer so that the correct tax code can be applied to your earnings in the future.
Any overpaid tax during this time will be refunded to you by the HMRC.
Conclusion:
The above discussion helps to conclude that the 0T Noncum tax code is an emergency tax code that is applied on a temporary basis. What it indicates is that the taxpayer has no tax-free Personal Allowance and their entire earnings for the period (not the entire tax term) are being taxed.
References:
What your tax code means – GOV.UK
Understanding your tax code: a guide for doctors – Royal Medical Benevolent Fund
