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.
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.
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
- 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.
Related tax codes
- 0T
0T (zero-T) gives you no Personal Allowance. Tax is calculated on every pound of your pay using the normal bands — 20%, 40%, 45% — as if your whole income is taxable.
- K
A K-prefix tax code (e.g. K475) means your taxable deductions exceed your Personal Allowance. The number represents extra taxable income added to your pay, not a tax-free amount.
- 1257L W1/M1/X
An 'emergency' tax code is a non-cumulative version of your main code. You'll see W1 (weekly), M1 (monthly), or X (either) appended - each pay period is taxed in isolation, which usually means you pay more tax than you owe.
- 1257L
1257L is the default UK tax code for 2026/27. It gives you the full £12,570 Personal Allowance before Income Tax is deducted - the number 1257 is your allowance divided by 10, and the L means a standard untouched allowance.
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 →