Should I be on D1 if my main job pays under £125,140?

No. D1 is only correct when your main job already uses up the Personal Allowance, basic-rate band and higher-rate band — meaning earnings above £125,140. If your main job pays less, the second job should be on D0 (40%) or BR (20%) instead. Contact HMRC to fix the codes.

How rare is the D1 code?

Very rare. Fewer than 600,000 UK taxpayers earn over £150,000 a year. Of those, only a fraction have a second job that triggers D1. Most additional-rate earners with multiple incomes use Self Assessment instead of D1 because it gives more control over tax planning.

Why is my tax code D1?

Q: What does D1 mean on my tax code?

D1 means every pound of pay under that code is taxed at 45% UK additional rate, with no Personal Allowance, basic-rate, or higher-rate band applied. Used on a second job when the main job already exceeds £125,140 of income.

Last reviewed by the UK Tax Drag editorial team · 12 May 2026 · How we review · Next review due 12 May 2027 · See what changed · Report an error

4-minute read

Tax code D1 means every pound is taxed at 45% additional rate, with no Personal Allowance, basic-rate, or higher-rate band applied. Used on a second job when the main job already exceeds £125,140 of income (the additional-rate threshold). Wrong D1 codes cost you significant overpaid tax — phone HMRC immediately if you don't earn over £125k from your main job.

When D1 is the correct code

D1 is correct when:

You have two or more jobs
Your main job earnings exceed £125,140 a year
HMRC has assigned D1 to the second job to capture the 45% additional-rate tax due on that income

Example: main job pays £180,000 a year (well into additional rate). Second job (e.g. directorship at a charity, occasional consultancy) pays £10,000. HMRC assigns D1 to the second job so the £10,000 is taxed at 45% = £4,500. This correctly captures the additional-rate tax without requiring Self Assessment.

D1 is rareOnly about 600,000 UK taxpayers earn over £150,000 a year (the threshold for additional rate). D1 is only relevant to those who also have a second income stream. Most of those people file Self Assessment anyway, so HMRC sometimes uses 0T for the second job instead.

Worked example — main job £180k + second job £10k on D1

Income source	Code	Gross	Tax
Main job	0T (PA tapered to £0)	£180,000	£67,331
Second job	D1	£10,000	£4,500
NI on main	—	—	£5,611
NI on second (Class 1)	—	—	£200
Combined take-home		£190,000	£112,358

If the second job were on BR (20%) instead of D1, the tax due on that £10,000 would be £2,000 instead of £4,500 — leaving a £2,500 underpayment to settle via Self Assessment.

When D1 is wrong

D1 is wrong if:

You have only one job
Your main job earnings are below £125,140
You quit your main job (your remaining job should switch to a normal code)
HMRC has misassigned codes between your jobs

If D1 is wrongYou’re paying 45% on income that should be at 20%, 40% or 0%. On £10,000 of pay, that could be £2,500-£4,500 of overpaid tax. Phone HMRC immediately on 0300 200 3300.

What to do if D1 appears unexpectedly

Action 1: Verify multiple jobs in your Personal Tax AccountLog into gov.uk/personal-tax-account. Confirm HMRC has the correct list of employments.

Action 2: Check the main-job income is above £125,140If your main job pays less, the second job shouldn’t be on D1. A second job for a higher-rate (not additional-rate) earner uses D0 instead.

Action 3: Phone HMRC on 0300 200 3300Provide your NI number and details of both jobs. HMRC reassigns codes within 1-2 working days.

Action 4: Consider Self Assessment registrationIf you earn over £150,000 in total and have multiple income sources, you almost certainly need to file Self Assessment anyway. HMRC may use D1 as a simpler PAYE solution to avoid SA, but for many high earners SA gives more control over tax planning (Gift Aid, EIS, pension contributions).

Plan high-income tax efficiency

The marginal tax rate calculator shows your real marginal rate above £100k including PA taper. The £200k take-home page shows additional-rate position.

See £200k take-home →

Other UK tax codes explained

Sources and methodology

D1 code rules from gov.uk/tax-codes. Additional rate threshold and PA taper from gov.uk/income-tax-rates.

UK Tax Drag is not authorised by the Financial Conduct Authority and does not provide regulated financial advice — see the content disclaimer for the full position. The methodology page documents how every calculator is built and reviewed.

Editorial accountability

Open Trust Centre →

Every page is reviewed against the editorial standards, written from primary sources, sourced openly, and corrected publicly. No affiliate revenue. No sponsored content. No paid placements.

Editorial standards Editorial process Corrections policy How we make money Editorial team Methodology