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.
Now you must be wondering how to avoid emergency tax. First, know that you get an emergency code when HMRC or your employer does not have the correct information to calculate your Income Tax accurately.
This article explains what emergency tax is, how to avoid it, and how long it takes to reclaim it.
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What Is Emergency Tax? Can I Claim it Back?
An emergency tax code is a temporary tax code issued by HMRC when it does not have enough information to apply the correct tax code for your circumstances. For example, when you start a new job without a P45, take a private pension drawdown, or have a second job, HMRC may use this tax code.
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.
If you think your tax code looks incorrect or you have paid too much tax, use our Tax Code Checker. It helps you understand your code.
Why You Might Be Put on Emergency Tax?
Before understanding how to avoid emergency tax. You should know why you might be assigned an emergency tax. You may receive an emergency code in several situations, such as:
- Starting a new job
- Starting Work Without a P45
- Starting to Receive a Pension
- HMRC Has Incomplete or Incorrect Information
You can identify this tax code on your payslip. An emergency code ends in W1, M1, or X (such as 1257L W1), or codes like BR or 0T (these two are not automatically emergency codes). These codes mean your tax is calculated only on the pay you receive for that specific week or month, rather than your cumulative earnings for the whole tax year.
How To Avoid Emergency Tax?
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 way to avoid emergency tax is checking your tax code regularly. 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.
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Automatic Refund
If HMRC corrects your tax code during the tax year, any overpaid tax may be refunded through your payroll. However, a refund is not always automatic.
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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.
- Give your new employer your P45 if you have one. However, if you don’t have one, complete the employer’s starter checklist.
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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.
If you have not received a P800, check your HMRC Personal Tax Account to find out how to claim. You can also contact HMRC directly. If you complete Self Assessment, any refund due is usually handled through your tax return.
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Claiming When You Have Stopped Working
If you have stopped working, you may be able to claim an in-year Income Tax refund using form P50 if you meet HMRC’s eligibility conditions.
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Claiming On a Pension Lump Sum
Now that you know how to avoid emergency tax, you can also reclaim overpaid emergency tax using a specific HMRC form.
- Typically, Form P50Z is for people who have flexibly accessed their entire pension, stopped work, and have no other income apart from the State Pension.
- 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 2026/27 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. The time taken to get an emergency tax back can vary depending on the following scenarios:
- If you have started a new job and put on an emergency code, your employer will receive your updated tax code within 35 days.
- If HMRC corrects the issue automatically, you normally receive the refund with your next salary payment.
- If your P800 confirms that you are due a refund for a previous tax year, you can claim online through the official government website or HMRC app. You will get the money within 5 working days. However, if you have asked for a cheque, it will take 6 weeks.
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.
How CAIL Can Help?
An incorrect tax code can make your take-home pay difficult to predict. Giving your employer accurate information and keeping accurate records can help resolve the problem. At CAIL, we have a team of professionals who can help you keep accurate records and claim a refund for overpaid taxes.
Contact us to discuss the support available for your circumstances.
From bookkeeping to VAT returns, we manage it all so you can focus on growing your business.
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 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.