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 always tied to a specific reason HMRC has recorded.
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's PAYE Manual (PAYE11015) says an NT code reason must be recorded before the code can be issued, and NT is limited to the cases listed in PAYE11010; the code reaches your employer on a coding notice (form P6 or P9); 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
- Visiting teachers, foreign language assistants, students and others whose pay is exempt under a double taxation agreement (PAYE11010).
- Pay covered by a statutory exemption, such as pensions for specified wounds and disabilities (PAYE11010, EIM75920).
- You are subject to a bankruptcy order - HMRC uses NT from the date of bankruptcy to the following 5 April (PAYE11010).
- Ministers of religion in certain circumstances, and members of religious orders who have deeded their income to the order (PAYE11010).
- Pay that is self-assessed as trading profit - for example a small PAYE post held as part of a self-employed profession, or entertainers engaged for six days or less under the entertainment-industry seven-day rule (PAYE11010).
- Seafarers working abroad who expect to qualify for the Seafarers' Earnings Deduction - HMRC can give NT provisionally, and recovers the tax if the deduction later proves not to be due (PAYE81675).
- Statutory Sick Pay is NOT an NT case: gov.uk says tax and National Insurance are deducted from SSP in the normal way.
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
A seafarer leaving the UK on a long foreign-going contract expects to qualify for the Seafarers' Earnings Deduction, which would take all of that pay out of UK Income Tax. HMRC's PAYE Manual (PAYE81675) lets it issue NT provisionally: the employer then deducts no Income Tax from, say, £4,000 a month. The seafarer must keep records of every UK arrival and departure and substantiate the claim each year. If the deduction later turns out not to be due, HMRC recovers the tax that was not deducted, so the NT period is a deferral until the claim is proved, not a guaranteed exemption.
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. HMRC's PAYE Manual (PAYE11010) limits it to listed cases: pay exempt under a double taxation agreement (visiting teachers, students and others), statutory exemptions such as certain wounds and disability pensions, ministers of religion in certain circumstances, a bankruptcy order (NT from the bankruptcy date to the following 5 April), pay that is self-assessed as trading profit, and entertainment-industry engagements under the seven-day rule. HMRC can also give NT provisionally to a seafarer expected to qualify for the Seafarers' Earnings Deduction (PAYE81675). Statutory Sick Pay is not one of them - tax is deducted from SSP as normal.
- 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 £1,394.40 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.
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 →