The tax code OT (or S0T if your in Scotland) is an emergency tax code in the UK. This tax code means all the income in your payslip is being taxed without any tax free personal allowance** being deducted.
** the tax free personal allowance is £12,570 for the 2023-24 tax year
Friendly Disclaimer: Whilst I am an accountant, I’m not your accountant. The information in this article is legally correct but it is for guidance and information purposes only. Everyone’s situation is different and unique so you’ll need to use your own best judgement when applying the advice that I give to your situation. If you are unsure or have a question be sure to contact a qualified professional because mistakes can result in penalties.
For the 2023-24 tax year, there is a tax free personal allowance of £12,570. If you are paid monthly, for example, and have the standard tax code the first £1,047.50 (£12,570 ÷ 12)of your income is tax-free and you’ll start to pay tax on everything over this amount, depending on the tax bands your income falls into.
If you are on the OT W1/M1 tax code you’ll start paying tax on your income without any tax free personal allowance being deducted before working out how much income tax you’ll pay. For this reason, it is a type of non-cumulative tax code.
Here’s an Example of the 0T W1/M1 Tax Code
You earn a gross monthly salary of £4,500 and you have been put on the 0T tax code for the 2023-24 tax year. You won’t receive any tax free personal allowance when you are paid, so you’ll pay income tax of £1,171.37.
If you were taken off the emergency tax code and put on a standard tax code, you’d pay income tax of £752.37 instead. A tax saving of £419.
0T Tax Code
Standard Tax Code
Gross Pay
£4,500.00
£4,500.00
Personal Allowance
£0.00
(£1,047.50)
Taxable Pay
£4,500.00
£3,452.50
Basic Rate Income Tax @ 20%
£628.33
£628.33
Higher Rate Income Tax @ 40%
£543.33
£124.33
Total Income Tax
£1,171.67
£752.67
Why Are You On the OT Tax Code?
Unless your employer is totally sure they should be giving you the personal allowance, they will put you on the OT emergency tax code instead when they work out how much income tax you’ll pay. The reason they do this is to stop you from benefitting twice from the personal allowance, paying too little tax and then getting hit with a big tax bill at a later date.
Although the OT tax code is usually temporary, there are a few reasons you may have one including;
You have started a new job and your new employer does not have details about your previous employment. This would normally be on a P45 or starter checklist (previously known as a P46).
You have a second job or a pension. This would mean you are using your personal allowance is being used up somewhere else
You’re going from self-employed to PAYE employment. Therefore, you are claiming your personal allowance on your tax return or through your salary from your Limited Company.
How to Get an OT Tax Refund
If you think you have been given the incorrect tax code, then first speak to your employer. You should check they have all the right paperwork they need from you or HMRC to put you on the correct tax code. Once they have confirmed they have everything then check with them that your 0T tax code will be changed on your next payslip and that you’ll be getting a tax rebate.
Tax codes are dealt with by HMRC, not your employer to help keep things confidential. If you are not on the correct tax code and you’re employer is waiting for an updated code contact HMRC by phone on 0300 200 3300. Alternatively, you can use their income tax service online by logging into (or setting up) your personal tax account to notify them that you believe you are on the wrong tax code.
If you do not change your tax code, once the tax year ends, the tax office check that you have paid enough tax based on the records they hold on your income for previous tax year.
If you are owed a tax rebate or owe tax of up to £3,000, they will send you a P800 letter with details of what has happened. If you owe more than £3,000 they will issue you with a simple assessment
What is the Difference Between OT and BR Tax Codes?
The OT and BR tax codes both mean you receive no tax free personal allowance. The BR tax code only taxes your salary at the basic rate. Whereas the 0T tax code taxes you at the basic rate (20%), higher rate (40%) and additional tax rate bracket (45%) as income increases. If you only pay tax at the basic rate, there is no difference between the OT and BR tax codes.
How Long Does the OT Tax Code Last?
You’ll remain on the 0T tax code until the end of the tax year unless you call the tax office and ask them to update your details so you are on the correct tax code.
Can I Claim OT Tax Back?
You’ll receive any overpaid emergency tax back once you have changed your tax code. If your tax code changes during the tax year, your employer will give you a tax rebate through your payslip. Once the tax year has ended the tax office will work out whether you have paid the right amount of income tax and send you your tax rebate.
The OT code includes the letter 'O' for 'Other' and the letter 'T' for 'Temporary'. This temporary aspect of the OT code is important as it is commonly used as a temporary measure while HMRC collects the required information to give you the correct tax code. Please enable JavaScript. Video Player is loading. Play Video.
Does overtime get taxed differently than regular time? Overtime doesn't get taxed any differently than regular wages. Overtime wages can, however, increase an employee's gross pay enough that they'll move into a higher tax bracket.
Your tax code tells your employer or pension provider how much to take in income tax from your wages or pension. HMRC issues a tax code to everyone on the PAYE (pay as you earn) system. You don't choose your own code.
The tax code is the entire set of laws that govern the way U.S. taxpayers pay their taxes, while tax rate refers to the percentage of income that a taxpayer owes. The tax rate is determined by your tax bracket, which are classifications based on income.
Operational technology (OT) is the hardware and software that monitors and controls devices, processes, and infrastructure, and is used in industrial settings. IT combines technologies for networking, information processing, enterprise data centers, and cloud systems.
Under the FLSA, overtime pay is determined by multiplying the employee's “straight time rate of pay” by all overtime hours worked PLUS one-half of the employee's “hourly regular rate of pay” times all overtime hours worked. All overtime work that is ordered or approved must be compensated.
Yes, California law requires that employers pay overtime, whether authorized or not, at the rate of one and one-half times the employee's regular rate of pay for all hours worked in excess of eight up to and including 12 hours in any workday, and for the first eight hours of work on the seventh consecutive day of work ...
The tax system should be simplified and work for all Americans with lower individual and corporate tax rates and fewer brackets. Cut inefficient and unfair tax breaks.
Section 61(a) of the Internal Revenue Code defines gross income as income from whatever source derived, including (but not limited to) “compensation for services, including fees, commissions, fringe benefits, and similar items.” I.R.C. § 61(a)(1).
Transaction Codes (TC) consist of three digits. They are used to identify a transaction being processed and to maintain a history of actions posted to a taxpayer's account on the Master File.
The question is: why does the UK have the longest tax code in the world? The Hong Kong tax code, widely held by tax lawyers to be the most admirably efficient in the world, is 276 pages long. The British tax code, rapidly beginning to look like the most disingenuous in the world, is currently in excess of 17,000 pages.
The Congress and the President are responsible for writing and approving the tax laws, which the IRS applies and enforces. The tax code includes all types of federal taxes.
An 0T code gives you no tax free pay, but unlike BR, D0 or D1 codes it is not a flat rate. It takes account of the basic rate, higher rate and additional rate tax bands. So the rate of tax increases as earnings increase. This will only affect people whose earnings in a pay period exceed the basic rate tax band.
Appendix B summarizes the history of the AOTA Occupational Therapy Code of Ethics. The occupational therapy profession is grounded in seven longstanding Core Values: Altruism, Equality, Freedom, Justice, Dignity, Truth, and Prudence (AOTA, 1993).
An official AOTA document, the AOTA Occupational Therapy Code of Ethics informs your practice, research, and education, to help occupational therapists, occupational therapy assistants, and students face complex ethical problems at various levels.
Occupational therapy is the use of occupation to promote health and wellness. Occupational therapists are health professionals who use occupation and meaningful activities with specific goals to help people of all ages prevent, lessen, or adapt to disabilities.
Introduction: My name is Dean Jakubowski Ret, I am a enthusiastic, friendly, homely, handsome, zealous, brainy, elegant person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
