In the context of the UK tax system, the term “OT tax code” refers to a specific tax code used by Her Majesty’s Revenue and Customs (HMRC) to calculate an individual’s income tax liability.
“OT” tax code is used when the taxpayer is not eligible for any personal allowance. Usually, the individual gets £12570 every year (as of 2023-24) its the maximum allowance you can get in a year. This personal allowance may vary based on individual circumstances.
If you have an OT tax code on your payslip this refers that the entire amount is taxable and you will not get any personal allowance. For example, if you get £24000 in a year as a salary your entire amount is taxable, whereas you should get a personal allowance of £12570 for a year which means (£24000 – £12570) = £11430, you should pay tax only on this tax. OT tax code applied if you have multiple sources of income and you have already consumed your personal allowance for that year. Or you may have started a new job or you haven’t given enough information to your employer.
Tax code applies based on individual circumstances and they can be changed if your situation changes or if the tax code is applied by mistake. If you have any concerns about the tax code you should contact an accountant near you for professional help who can help you to change the tax code and also may help you to get the tax refund if any or you may contact HMRC on tax codes.
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What is OT tax code?
OT Tax Code: The OT tax code is used when an individual does not receive any personal allowance against their income. It means that all their income is subject to tax without any deductions for the personal allowance.
How to change OT tax code?
Changing the OT Tax Code: If you have been assigned the OT tax code and believe it is incorrect or needs to be changed, you should contact HMRC directly. They will be able to review your circumstances, update your tax code if necessary, and ensure that you are paying the correct amount of tax based on your situation.
What are the OT tax code rates?
OT Tax Code Rates: The tax rates applied to income under the OT tax code are the same as the standard income tax rates in the UK. As of my knowledge cutoff in September 2021, the basic income tax rates for the tax year 2021/2022 are:
20% on income between £12,571 and £50,270
40% on income between £50,271 and £150,000
45% on income above £150,000
Please note that tax rates may have changed since then, so it’s always important to refer to the most up-to-date information from HMRC or consult a tax professional for accurate and current rates.
Also read: Corporation Tax Reference Number
Why I have OT tax code on my payslip?
If you have the OT tax code on your payslip, it indicates that you are not receiving any personal allowance against your income. This can happen for several reasons, such as having multiple sources of income that have already utilized your personal allowance or receiving certain benefits or allowances that affect your tax position.
How to change OT tax code?
To change your OT tax code or verify if it is correct, you should follow these steps:
Check your tax code: Your tax code should be mentioned on your payslip, P45 (if you recently changed jobs), or the P60 form you receive at the end of the tax year. Make sure to review these documents to confirm your current tax code.
Understand your circumstances: Determine if there have been any changes in your circumstances that may affect your tax code, such as changes in income, employment status, benefits, or allowances.
Contact HMRC: If you believe your tax code is incorrect or needs to be changed, you should contact HMRC directly. You can reach HMRC by phone, through the online webchat service, or by sending a written inquiry. Explain your situation and provide any relevant details to support your request for a tax code adjustment.
Provide necessary information: HMRC may ask for additional information or supporting documents to assess your tax code correctly. Be prepared to provide details about your income, employment, and any other relevant factors affecting your tax status.
Seek professional advice if needed: If you find the tax system complex or have specific concerns, it is advisable to consult a tax advisor or accountant. They can provide personalized guidance and assist you in dealing with HMRC regarding your tax code.
Remember, it is crucial to keep your tax affairs up to date and ensure that you are paying the correct amount of tax based on your circumstances.
How can I get the refund on OT tax code?
Obtaining a refund on an OT tax code: If you believe you are due a refund because you have paid too much tax under the OT tax code, you should contact HMRC to discuss your situation. They will review your tax records, assess your eligibility for a refund, and guide you through the necessary steps to claim it. It’s important to provide accurate information and any supporting documentation to support your refund claim. For professional help you should contact an accountant near you.
Also read: S455 Tax
How much tax I have to pay on OT tax code?
Tax liability under the OT tax code: The amount of tax you have to pay under the OT tax code depends on your income and the applicable tax rates. It is advisable to use HMRC’s online tax calculators or consult a tax professional accountant for a precise calculation based on your income and circumstances.
Is OT tax code is an emergency tax code?
No, the OT tax code is not an emergency tax code. The emergency tax code in the UK is usually indicated by the tax code “BR“ or “emergency tax” printed on your payslip or any HMRC document but HMRC use this code in emergency also in certain situations. It is applied when HMRC does not have sufficient information to assign the appropriate tax code to an individual.
The emergency tax code results in a higher rate of tax being applied to all income. However, the OT tax code signifies the absence of a personal allowance and does not relate to emergency tax.
How to contact HMRC to change OT tax code?
To contact HMRC (Her Majesty’s Revenue and Customs) in the UK to change your tax code for overtime (OT), you can follow these steps:
Visit the official HMRC website at:
Phone: If you prefer to speak with someone directly, you can call the HMRC Helpline (UK) Tel: 0300 200 3300. Explain that you need to change your tax code.
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