Why would HMRC put me on an NT tax code?

NT is rare and never the default. Common reasons: (1) non-resident employment where a double-tax treaty gives the taxing rights to your country of residence - HMRC may set NT after you submit form DT-Individual; (2) qualifying Seafarers Earnings Deduction giving 100% relief on foreign-going earnings; (3) Statutory Sick Pay periods where PAYE is temporarily suspended; (4) certain deceased-estate payments to beneficiaries; (5) specific foreign-service allowances paid to qualifying employees. HMRC always issues a written coding notice (P6 or P9) before NT is applied.

Do I still pay National Insurance on an NT code?

Yes, if your earnings are high enough. National Insurance is calculated separately from your tax code, so an NT code stops Income Tax but not NI. If your pay exceeds the £12,570 Primary Threshold, Class 1 NI is still deducted at 8% up to £50,270 and 2% above. On a £30,000 salary coded NT you would pay £0 Income Tax but still around £1,394 of Class 1 NI.

Can I request an NT tax code?

No - NT is set by HMRC only in specific circumstances. It can't be requested just to avoid PAYE. Attempting to force NT without a valid reason results in back-tax plus interest.

Is NT the same as 0T?

No. NT deducts zero tax entirely. 0T removes your Personal Allowance but still taxes every pound at the normal band rates (20/40/45%). They behave very differently.

I'm on NT and my payslip shows zero tax. Do I still need to declare anything?

Possibly yes. NT just stops deductions at source - it doesn't determine overall liability. If your total UK tax position requires it, you'll need to declare via self-assessment. Check with HMRC or an accountant.

My payslip shows NT - what should I do?

First, ask your employer or pension provider to share the HMRC coding notice (form P6 or P9) that authorised NT - they will have the paperwork. Second, confirm NT is genuinely correct for your situation via your Personal Tax Account or by calling HMRC on 0300 200 3300. If NT is wrong, act fast: the longer it runs the larger the eventual tax bill. Keep any supporting evidence (residency status, treaty claim, Seafarers qualification calendar) in case HMRC reviews the case later.

Tax Code · 2026/27

NT Tax Code: No Income Tax Deducted UK 2026/27

NT stands for 'No Tax'. Your employer or pension provider deducts zero Income Tax at source — unusual, and usually tied to a specific reason.

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What the NT tax code means

An NT tax code directs your payer to take zero Income Tax from your pay. It does not mean your income is tax-free overall — it means HMRC is collecting the tax elsewhere (usually self-assessment) or your circumstances genuinely don't create a tax liability at this source.

NT is rare and is never HMRC's default. If you see NT on a payslip you don't expect, check the reason quickly — an incorrect NT code lets tax accumulate and creates a year-end bill.

National Insurance is not switched off by an NT code. NI is calculated separately from your tax code, so if your earnings exceed the £12,570 Primary Threshold, Class 1 NI is still deducted as normal. HMRC only ever applies NT through a formal coding notice (form P6 or P9) carrying a specific reason; your employer's payroll then simply skips the Income Tax line for any payslip dated within the NT period, and HMRC can revoke it at any time if your circumstances change.

When you'll see NT

Statutory Sick Pay (SSP) periods where PAYE temporarily isn't applied.
Non-resident employment where a tax treaty exempts the income from UK PAYE.
Deceased estate income being paid to a beneficiary, depending on estate type and HMRC determination.
Some income-tax-free foreign service allowances paid to qualifying employees.
Seafarers' Earnings Deduction cases where the employee qualifies for 100% reduction.

What to do if you have a NT code

Confirm with your employer or pension provider why NT applies — they'll have the written instruction from HMRC.
If NT is incorrect (e.g. you expected normal PAYE), contact HMRC on 0300 200 3300 immediately — the longer NT runs, the larger the eventual tax bill.
Non-residents claiming treaty relief should keep documentation (DT-Individual form or equivalent) showing the treaty article invoked.
Even on NT, you may still need to file a self-assessment return depending on your situation — speak to an accountant if unsure.

Worked example

An employee returning from a long period of overseas work may be temporarily placed on NT while HMRC determines residency. During that period, zero Income Tax is deducted from £4,000/month pay. Once HMRC confirms UK residency, the code reverts — often to 1257L W1/M1 initially — and cumulative tax is recovered via subsequent payrolls or self-assessment.

Want to see the numbers for your own salary? Use the salary calculator and pick 2026/27 to see how NT interacts with your full take-home.

Frequently asked questions about NT

Why would HMRC put me on an NT tax code?: NT is rare and never the default. Common reasons: (1) non-resident employment where a double-tax treaty gives the taxing rights to your country of residence - HMRC may set NT after you submit form DT-Individual; (2) qualifying Seafarers Earnings Deduction giving 100% relief on foreign-going earnings; (3) Statutory Sick Pay periods where PAYE is temporarily suspended; (4) certain deceased-estate payments to beneficiaries; (5) specific foreign-service allowances paid to qualifying employees. HMRC always issues a written coding notice (P6 or P9) before NT is applied.
Do I still pay National Insurance on an NT code?: Yes, if your earnings are high enough. National Insurance is calculated separately from your tax code, so an NT code stops Income Tax but not NI. If your pay exceeds the £12,570 Primary Threshold, Class 1 NI is still deducted at 8% up to £50,270 and 2% above. On a £30,000 salary coded NT you would pay £0 Income Tax but still around £1,394 of Class 1 NI.
Can I request an NT tax code?: No - NT is set by HMRC only in specific circumstances. It can't be requested just to avoid PAYE. Attempting to force NT without a valid reason results in back-tax plus interest.
Is NT the same as 0T?: No. NT deducts zero tax entirely. 0T removes your Personal Allowance but still taxes every pound at the normal band rates (20/40/45%). They behave very differently.
I'm on NT and my payslip shows zero tax. Do I still need to declare anything?: Possibly yes. NT just stops deductions at source - it doesn't determine overall liability. If your total UK tax position requires it, you'll need to declare via self-assessment. Check with HMRC or an accountant.
My payslip shows NT - what should I do?: First, ask your employer or pension provider to share the HMRC coding notice (form P6 or P9) that authorised NT - they will have the paperwork. Second, confirm NT is genuinely correct for your situation via your Personal Tax Account or by calling HMRC on 0300 200 3300. If NT is wrong, act fast: the longer it runs the larger the eventual tax bill. Keep any supporting evidence (residency status, treaty claim, Seafarers qualification calendar) in case HMRC reviews the case later.

All UK tax codes →

Sources & further reading

All figures and definitions on this page reflect the 2026/27 UK tax year and are cross-checked against HMRC guidance.

HMRC — What your tax code means (official meanings for L, BR, D0, D1, K, 0T, NT, M, N, S, C, T)
HMRC — Income Tax rates and Personal Allowance (2026/27 bands and thresholds)
HMRC — Emergency tax codes (W1, M1 and X suffixes)
HMRC — Rates and thresholds for employers 2026 to 2027
HMRC — Your Personal Tax Account (check your current code and how it was calculated)
Our methodology & calculation sources →