What is the OT Tax Code? HMRC’s Tax Alarm Explained

Unicorn Accountants18 Mar, 2024Business

The OT tax code is a default tax code used by HMRC in the event you do not have any personal allowance remaining or when you start a new job. In the latter, if your new employer does not have details of your tax code, they will assign the OT tax code.  The OT tax code implies that you do not have any personal allowance remaining i.e., your total income will be taxed. The income tax rate applicable will not exclude the personal allowance which is generally tax free.