Have you started a new job and noticed more tax than expected on your payslip? You may have been placed on an emergency tax code. It is a common situation that surprises UK employees, especially those switching jobs, returning to work after a break, or starting their first role. Questions can arise in your mind about how to avoid emergency tax when it is used, and what the signs of being emergency taxed are. It happens when an employer does not have the correct tax code from HMRC. Any overpaid tax can usually be reclaimed once the issue is resolved.
In this article, we will guide you on how to avoid emergency tax, how it works, and how long it takes to reclaim it.
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What is Emergency Tax? Can I Claim it Back?
It is a temporary tax code issued by HMRC when it does not have enough information to apply the correct tax code for your circumstances. Understanding this is key when learning how to avoid emergency tax in the future.
It is often a non-cumulative code that results in you paying more tax than you owe. This is because it may not include your full tax-free personal allowance.
How To Avoid Emergency Tax?
In order to avoid getting emergency taxed in the UK, you must understand the following scenarios:
New Job
- One of the most effective ways to prevent emergency tax is to submit your P45 to your new employer as soon as you start.
- If you do not have a P45, your employer will ask you to complete a starter checklist. This provides HMRC with the information needed to issue the correct tax code and helps prevent emergency tax.
Checking Your Tax Code
Another important step in how to avoid emergency tax is regularly checking your tax code. Log in to your Personal Tax Account or use the HMRC app to review your details and notify HMRC if anything looks incorrect.
Reporting Life Changes
Keeping HMRC informed about changes in your circumstances is essential when learning how to avoid emergency tax. Changes such as receiving taxable benefits or company perks can affect your tax code.
What Are The Signs That You Are Being Emergency Taxed?
Now, you should also know the signs that you are on an emergency tax code. The following are the signs that you are on an emergency tax code:
Tax Code Ending in W1, M1, or X
Codes like “1257L W1” (weekly pay) or “1257L M1” (monthly salary) signify that you are on an emergency tax code. W1 stands for “Week 1”, and M1 stands for “Month 1”, meaning your tax is non-cumulative. Tax code ending in “X” is used for non-standard pay periods (X also indicates a non-cumulative basis).
Tax Code is “BR” or “0T”
- BR (Basic Rate) code means you get no Personal Allowance, and all income is taxed at the basic 20% rate.
- 0T means you have no tax-free Personal Allowance.
Reduction In Take-Home Pay
If you notice an unexpected and much higher tax deduction than normal, it is a strong indicator that you are on an emergency tax code.
How To Claim Back Emergency Tax?
Now you know how to avoid emergency tax, so let’s talk about how you can claim it back.
Automatic Refund
When HMRC receives the correct information, it will update your tax code. This will refund any overpaid tax automatically through your next payslip. In most situations, you don’t have to do anything.
Claiming In the Current Tax Year
If your overpayment is not resolved automatically, you should tell HMRC directly. This can be done by:
- Log in to your Personal Tax Account online to check your details. This ensures your employment or pension information is correct, and HMRC has issued a new tax code.
- Provide your P45 to your new employer. If you do not have one, complete a “Starter Checklist”.
Claiming For a Previous Tax Year
If you want to claim for a tax year that has already ended, HMRC may send you a P800 tax calculator showing any overpayment. This can be done by:
- Using your P800 calculation, if it shows you are due a refund, you can claim it online through your personal tax account or the HMRC app.
- If you did not receive a P800, you can write to HMRC to claim a refund. This includes your name, address, National Insurance number, and details of the overpayment.
Claiming When You Have Stopped Working
If you have either stopped working permanently or become unemployed for over four weeks in the 2025/26 tax year, you can claim an in-year tax repayment using the P50 form available online.
Claiming On a Pension Lump Sum
Now you know how to avoid emergency tax, you can also reclaim overpaid emergency tax using a specific HMRC form.
- Form P50Z can be used if you have fully withdrawn your pension and have no other income.
- Form P53Z is used if you have fully withdrawn your pension but have other sources of income.
- If you have made a partial withdrawal and are not planning another one in the same tax year, then Form P55 is used.
How Do Emergency Tax Codes Work?
To understand why emergency tax increases deductions, you should first know how the emergency tax codes work. The emergency tax codes are non-cumulative. This means that your tax is calculated based only on the pay you receive in the current pay period.
This can often result in you paying more than you should. This is because you do not receive your full annual Personal Allowance, which is £12,570 for the 2025/26 tax year.
A common emergency tax code, like 1257L M1, works by:
- Assuming you are entitled to the standard Personal Allowance.
- Applying only 1/12 of the allowance (£12,570 /12) in a given month, or 1/52 in a given week (£12,570/52), regardless of when you started your job.
- Calculating your tax based on just that pay period, without considering your previous income or how much tax you have paid in that year.
How Long Does It Take To Get An Emergency Tax Back?
When learning about how to avoid emergency tax it is also necessary to know how long it takes to get it back. It normally takes between five days and eight weeks to claim back emergency tax if HMRC accepts your claim. The time taken for refund can vary depending on the following scenarios:
- If HMRC corrects the issue automatically, you normally receive the refund with your next salary payment.
- You can claim the money online within at least five working days if you are claiming a refund for a prior tax year and have a P800 notice.
- If HMRC sends you a cheque, it can take up to six weeks to arrive.
- In some cases, HMRC may need to conduct security checks, which can delay the process.
How Is My Tax Code Calculated?
You can calculate your tax code, as explained earlier, about how to avoid emergency tax. This is done in the following ways:
The Numerical Part
This reflects your Personal Allowance and is calculated by HMRC for your employer.
- Add up your tax-free income, including your Personal Allowance and any tax reliefs, such as allowable job-related expenses.
- Subtract any income that is not taxed at source; this can include any income that you have not paid tax on. It includes interest from untaxed savings or certain state benefits.
- Subtract the taxable value of company benefits, like a company car or private medical insurance.
- The final tax-free amount you get is divided by 10 to give the number for your tax code.
The Letter Part
The letter at the end of your tax code provides specific information about your tax situation.
- L: Entitled to the standard tax-free Personal Allowance.
- M or N: Receiving or transferring the Marriage Allowance.
- T: Indicates more complex tax affairs.
- BR: All income is taxed at the basic rate because you have a second job or pension.
- D0/D1: All income is taxed at the higher or additional rate because your Personal Allowance is used elsewhere.
- W1/M1/X: These indicate an emergency tax code, calculated on a non-cumulative basis.
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Bottom Line
In summary, we can say that the emergency tax code can feel frustrating. It is usually a temporary problem with an easy solution. Once HMRC receives your details, your tax code can be corrected. After that, the overpaid amount can be refunded.
The simplest way on how to avoid emergency tax is to keep your employment and tax information up to date. This can involve submitting your P45 or updating your personal tax account and ensuring your employer provides accurate details.
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Disclaimer: This article intends to provide general information on how to Avoid Emergency Tax in the UK.