PAYE11025 - Coding: codes: how they are used and calculated: P2 notes for codes with no allowances or deductions

There are a number of notes that will be printed on a customer’s composite P2 where the code is BR, 0T, D0, (and the Scottish or Welsh equivalent) and/or NT.

Where a secondary source is for an Employment Support Allowance or Jobseeker’s Allowance claim the system will read the ‘EMPLOYER NAME’ as that of a Benefit office.

Customers without an S or C prefix (tax code) status

The list below gives the ‘Circumstance’ and the ‘P2X explanatory note’-

If tax code BR is present, Tax code BR shows that all your income from your job or pension is taxed at the 20% basic rate.

If tax code 0T is present, Tax code 0T shows there is no tax-free allowance available for this job or pension.

If tax code D0 is present, Tax code D0 shows all your income from this job or pension is taxed at the 40% higher rate.

If tax code D1 is present, Tax code D1 shows all your income from this job or pension is taxed at the 45% additional rate.

If tax code NT is present, Tax code NT shows no tax will be deducted on this income.

Customers with Scottish status

From 6 April 2016 the Scottish Government is responsible for setting their own Income Tax Rates. Where the Scottish Rate of Income Tax is applicable it will include an ‘S’ Prefix to the tax code calculated on NPS. The NT Tax Code will not change and will remain the same for all taxpayers regardless of where they live.

The list below gives the ‘Circumstance’ and the ‘P2 explanatory note’-

If tax code SBR is present, Tax Code SBR Shows that all your income from your job or pension is taxed at the Scottish Income Tax 20% basic rate.

If tax code S0T is present, Tax Code S0T Shows there is no tax-free allowance available for this job or pension.

If tax code SD0 is present, Tax Code SD0 Shows all your income from this job or pension is taxed at the Scottish Income Tax 21% intermediate rate.

If tax code SD1 is present, Tax Code SD1 Shows all your income from this job or pension is taxed at the Scottish Income Tax 42% higher rate.

If tax code SD2 is present, Tax Code SD2 Shows all your income from this job or pension is taxed at the Scottish Income Tax 45% advanced rate.

If tax code SD3 is present, Tax Code SD3 Shows all your income from this job or pension is taxed at the Scottish Income Tax 48% top rate.

If tax code NT is present, Tax Code NT Shows no tax will be deducted on this income.

Customers with Welsh status

From 6 April 2019 the Welsh Government is responsible for setting their own Income Tax Rates. Where the Welsh Rate of Income Tax is applicable it will include a ‘C’ Prefix to the tax code calculated on NPS. The NT Tax Code will not change and will remain the same for all taxpayers regardless of where they live.

The list below gives the ‘Circumstance’ and the ‘P2 explanatory note’-

If tax code CBR is present, Tax Code CBR Shows that all your income from your job or pension is taxed at the Welsh income Tax 20% basic rate.

If tax code C0T is present, Tax Code C0T Shows there is no tax-free allowance available for this job or pension.

If tax code CD0 is present, Tax code CD0 shows all your income from this job or pension is taxed at the Welsh Income Tax 40% higher rate.

If tax code CD1 is present, Tax Code CD1 Shows all your income from this job or pension is taxed at the Welsh Income Tax 45% additional rate.

If tax code NT is present, Tax Code NT Shows no tax will be deducted on this income.