How Much Emergency Tax Will I Pay On £2000

If you’ve recently moved to a new job or switched employers, it’s common to wonder “how much emergency tax will I pay on £2000?”. Emergency tax is a temporary measure used when HMRC hasn’t received the information it needs to assign the correct tax code. As a result, emergency tax can reduce your take-home pay more than expected. This blog explains how emergency tax works, why it applies, and how much you can expect to lose from a £2,000 payment under emergency tax codes.

What is Emergency Tax in The UK — Understanding The Basics

Why does Emergency Tax occur?

Emergency tax occurs when your employer does not have sufficient information to place you on the correct tax code. This can happen if:

• You don’t provide a P45 from a previous employer

• HMRC hasn’t updated your records yet

• You begin working mid-year after a break

• You switch jobs without completing all required forms

Without these details, the system cannot calculate your cumulative tax, so an emergency code is used temporarily.

How does Emergency Tax work?

Emergency codes such as 1257L W1, 1257L M1, or 1257L X signal that your tax is being calculated on a non-cumulative basis.

This means:

• Your personal allowance is not fully applied

• Each pay period (week or month) is treated as if it’s the first

• The system assumes you may not be entitled to previous tax-free amounts

• You may pay more tax than normal in the short term

Once HMRC receives your income information, the correct tax code replaces the emergency code.

What Happens If You Receive £2,000 While On Emergency Tax Code?

Calculation Basics — Does losing your Personal Allowance increase tax?

Yes. Under standard tax rules, you have a £12,570 personal allowance for the year. Under emergency tax, however, part or all of this allowance may not be applied to your £2,000.

So instead of a portion being tax-free, most or all of the £2,000 may be taxed. This is why emergency tax deductions can appear unexpectedly high.

Rough Estimate — How much tax might you pay on £2000?

Here’s what emergency tax might look like on a payment of £2,000:

• 20% basic rate: £400

• 40% higher rate (if applicable): £800

• 45% additional rate: £900

Most employees will fall under the 20% emergency rate, meaning they receive £1,600 take-home.

Why is this not always the final tax bill — will you be refunded?

Emergency tax is temporary, and once HMRC verifies your correct tax code:

• Any overpaid tax is refunded automatically

• Later payslips may show small reductions or adjustments

• If not corrected during the year, you may receive a refund at the end of the tax year

This ensures you only pay the correct tax overall, even if your first few payslips are over-taxed.

How Much Emergency Tax You Actually Pay?

Does pay frequency (weekly / monthly) change the result?

Yes. Emergency tax codes differ based on how often you’re paid.

Weekly Pay (W1)

Tax is calculated as if every week is your first.

Monthly Pay (M1)

Tax is calculated as if every month is your first.

In both cases, you temporarily lose cumulative personal allowance benefits.

Does previous income or employment affect your emergency tax?

If you had earnings earlier in the tax year, HMRC may assume you’ve already used some or all of your allowance. The system then taxes the £2,000 more heavily until updated records arrive.

People with multiple jobs, part-year earnings, or overlapping employment dates may experience higher deductions under emergency codes.

How much tax could you pay on £2000?

This table is a simplified illustration but shows how emergency codes can affect a single payment.

What to do if you Get Emergency Tax — Steps to Correct & Claim Refund

Should you check your payslip & Tax Code immediately?

Yes — always review your payslip. If it shows codes ending in W1, M1, or X, you are on emergency tax.

These tax codes confirm that HMRC has not yet processed your full employment details.

How do you provide required documents to correct the Tax Code?

To remove emergency tax quickly:

• Submit your P45 to your employer

• If you have no P45, complete the Starter Checklist

• Update your information in your HMRC Personal Tax Account

• Ensure your employer sends accurate payroll details to HMRC

These actions trigger HMRC to issue the correct code.

How can you claim any Emergency Tax refund?

Once your tax code is corrected:

• Your next payslip should automatically adjust

• Any overpaid tax should be refunded through PAYE

• If corrections happen late in the year, HMRC issues a direct refund after the tax year ends

Emergency tax does not mean lost money — it’s simply held temporarily until records are updated.

Should You Expect to Pay a Flat “Emergency Tax Rate”?

Emergency tax is not a fixed rate. It simply applies regular tax bands without allocating your full personal allowance.

Because of this, your £2,000 might be taxed at:

• 20% (basic rate)

• 40% (higher rate)

• 45% (additional rate)

The tax rate depends entirely on how HMRC interprets your income for that pay period.

Conclusion

If you’re asking “how much emergency tax will I pay on £2000?”, the most common deduction is around £400, assuming the basic 20% tax rate is applied. Emergency tax is only temporary, and once HMRC updates your tax code, you will receive a refund of any overpaid amount. Understanding how emergency tax works helps you identify why your payslip is higher or lower than expected—and ensures you take the right steps to secure your refund promptly.

FAQs

1. How much emergency tax will I pay on £20,000?

You will typically pay about £4,000 in emergency tax (20% of £20,000).

2. What is the Emergency Tax Calculator HMRC?

It’s an online tool that estimates how much tax you’ll pay under an emergency tax code.

3. What percentage is emergency tax in the UK?

Emergency tax usually starts at 20%, rising to 40% if your earnings push you into a higher band.

4. Is emergency tax 20%?

Yes, the basic emergency tax rate is 20%.

5. What was the personal tax allowance in 2000?

The standard personal allowance in 2000 was £4,335.