What does the NT tax code mean?

NT literally means "No Tax". Your employer or pension provider deducts zero Income Tax from your pay. It does not mean your income is tax-free overall - it means HMRC has determined that either no UK Income Tax is due on this source, or that the tax will be collected elsewhere (typically via Self Assessment). National Insurance is unaffected by the tax code, so if your earnings exceed the Primary Threshold (£12,570) Class 1 NI still applies.

Why would HMRC put me on NT?

NT is rare and never the default. Common reasons: (1) non-resident employment where a double-tax treaty exempts the income from UK PAYE; (2) qualifying Seafarers Earnings Deduction giving 100% relief on foreign-going earnings; (3) Statutory Sick Pay periods where PAYE temporarily does not apply; (4) some deceased-estate payments to beneficiaries; (5) certain foreign-service allowances paid to qualifying employees. HMRC always issues a written instruction (a P6 or P9) before NT is applied.

Can I request an NT tax code?

No - you cannot apply for NT yourself. HMRC sets it only when specific eligibility is met, and they require evidence (a DT-Individual form for treaty relief, a Seafarers claim form, residency documentation). Attempting to force NT without a valid reason - or applying it informally via a sympathetic employer - results in back-tax plus interest plus possible penalties when HMRC catches up at year-end.

Is NT the same as 0T?

No - they are opposite ends of the spectrum. NT deducts zero Income Tax entirely. 0T removes your Personal Allowance and runs your pay through the full UK band structure (20%, 40%, 45%) - so on £35,000 you would pay £7,000 of tax under 0T versus £0 under NT. The codes look similar but behave completely differently. Always double-check which one your payslip actually shows.

If I am on NT do I still need to file a tax return?

Often yes. NT just stops deductions at source - it does not determine your overall liability. Non-resident workers claiming treaty relief usually still need to file Self Assessment to declare the exempt income and substantiate the treaty article invoked. Seafarers claiming SED file Self Assessment with the relevant pages. Deceased-estate beneficiaries may need to deal with separate estate reporting. Speak to an accountant if your circumstances do not match a simple PAYE-only employment.

My payslip shows NT - what should I do?

First, ask your employer or pension provider to share the HMRC instruction (form P6 or P9) authorising NT - they will have the official paperwork. Second, check whether NT is genuinely correct for your situation by reviewing your HMRC Personal Tax Account or calling HMRC on 0300 200 3300. If NT is wrong, the longer it runs the larger the eventual tax bill, so flagging quickly is critical. Keep all evidence (residency status, treaty claims, P50/P53Z forms) in case HMRC reviews the case later.

NT Tax Code Explained (2026/27)

NT stands for "No Tax". Your employer or pension provider deducts zero Income Tax from your pay at source. It is a rare code - never HMRC's default - and it always has a specific reason behind it, usually involving non-UK residence, a tax treaty, or a statutory relief. National Insurance is not waived by an NT code; if your earnings exceed the Primary Threshold, Class 1 NI is still deducted as normal.

How to read the NT code

N = No.
T = Tax.
No number = no allowance figure needed; the whole source is exempt.
No regional prefix = NT applies UK-wide irrespective of Scottish or Welsh tax variances, because no Income Tax is being collected at all.

Unlike most tax codes, NT is not a calculation instruction - it is effectively an "off" switch for PAYE Income Tax on that source. HMRC issues it via a P6 or P9 coding notice with a specific reason code, and your employer's payroll software simply skips the Income Tax line for any payslip dated within the NT period.

Worked example: £30,000 on NT vs 1257L

The classic NT scenario - an employee on assignment overseas where a tax treaty exempts the income from UK Income Tax. Compare a £30,000 annual salary under NT against the same salary on the standard 1257L code (England/NI rest-of-UK):

Line	NT annual	1257L annual
Gross salary	£30,000	£30,000
Personal Allowance applied	n/a	£12,570
Income Tax	£0	£3,486
Class 1 NI (still applies)	£1,394	£1,394
Take-home (UK net only)	£28,606	£25,120

NT saves £3,486 of UK Income Tax this year compared to a standard 1257L code. But that does not mean the income is genuinely tax-free overall: in a typical NT case the tax is being paid to another jurisdiction (under a treaty), or to HMRC via Self Assessment, or genuinely exempted by a statutory relief such as Seafarers Earnings Deduction.

When NT genuinely applies

NT is set by HMRC in narrow, documented circumstances:

Non-resident with treaty relief - if you are tax-resident in a country with a UK double-tax treaty that gives exclusive taxing rights to your country of residence, HMRC may set NT after you submit form DT-Individual.
Seafarers Earnings Deduction (SED) - UK seafarers spending at least half the relevant tax year working outside the UK on a qualifying ship can claim 100% relief on the earnings; HMRC sets NT if SED is expected for the full year.
Statutory Sick Pay periods - in rare cases where SSP is the only source of pay and PAYE is temporarily suspended.
Deceased estate income - certain payments to beneficiaries from an administration period can be coded NT depending on HMRC's determination.
Foreign-service allowances - specific qualifying employer-paid allowances to employees working overseas.

None of these are self-service. HMRC always reviews evidence and issues NT via formal coding notice (P6 or P9), and they can revoke it at any time if circumstances change - for example, if you become UK-resident mid-year or your overseas posting ends.

How to check if NT is right for you

Ask your employer or pension provider for the HMRC coding notice (form P6 or P9) that authorised NT.
Log into your Personal Tax Account - it lists every code in force and the reason HMRC has on file.
Use the official Check your Income Tax for the current year service to confirm.
If you do not know why NT was applied, that is a red flag - assume it is wrong and contact HMRC on 0300 200 3300 immediately.

How to fix a wrong NT code

Speed matters: every payslip on a wrong NT compounds the eventual liability. Acting fast minimises the bill at year-end.
Online via gov.uk/tax-codes/if-your-tax-code-is-wrong.
Phone HMRC PAYE on 0300 200 3300 - explain that NT is in force but your circumstances do not justify it.
Keep evidence: residency status, treaty claims, SED qualification calendars, P50 or P53Z forms - HMRC may review the case retrospectively.
Be prepared for a back-tax bill via Self Assessment if NT applied for several months when it should not have.

Related tax codes

Frequently asked questions about NT

What does the NT tax code mean?: NT literally means "No Tax". Your employer or pension provider deducts zero Income Tax from your pay. It does not mean your income is tax-free overall - it means HMRC has determined that either no UK Income Tax is due on this source, or that the tax will be collected elsewhere (typically via Self Assessment). National Insurance is unaffected by the tax code, so if your earnings exceed the Primary Threshold (£12,570) Class 1 NI still applies.
Why would HMRC put me on NT?: NT is rare and never the default. Common reasons: (1) non-resident employment where a double-tax treaty exempts the income from UK PAYE; (2) qualifying Seafarers Earnings Deduction giving 100% relief on foreign-going earnings; (3) Statutory Sick Pay periods where PAYE temporarily does not apply; (4) some deceased-estate payments to beneficiaries; (5) certain foreign-service allowances paid to qualifying employees. HMRC always issues a written instruction (a P6 or P9) before NT is applied.
Can I request an NT tax code?: No - you cannot apply for NT yourself. HMRC sets it only when specific eligibility is met, and they require evidence (a DT-Individual form for treaty relief, a Seafarers claim form, residency documentation). Attempting to force NT without a valid reason - or applying it informally via a sympathetic employer - results in back-tax plus interest plus possible penalties when HMRC catches up at year-end.
Is NT the same as 0T?: No - they are opposite ends of the spectrum. NT deducts zero Income Tax entirely. 0T removes your Personal Allowance and runs your pay through the full UK band structure (20%, 40%, 45%) - so on £35,000 you would pay £7,000 of tax under 0T versus £0 under NT. The codes look similar but behave completely differently. Always double-check which one your payslip actually shows.
If I am on NT do I still need to file a tax return?: Often yes. NT just stops deductions at source - it does not determine your overall liability. Non-resident workers claiming treaty relief usually still need to file Self Assessment to declare the exempt income and substantiate the treaty article invoked. Seafarers claiming SED file Self Assessment with the relevant pages. Deceased-estate beneficiaries may need to deal with separate estate reporting. Speak to an accountant if your circumstances do not match a simple PAYE-only employment.
My payslip shows NT - what should I do?: First, ask your employer or pension provider to share the HMRC instruction (form P6 or P9) authorising NT - they will have the official paperwork. Second, check whether NT is genuinely correct for your situation by reviewing your HMRC Personal Tax Account or calling HMRC on 0300 200 3300. If NT is wrong, the longer it runs the larger the eventual tax bill, so flagging quickly is critical. Keep all evidence (residency status, treaty claims, P50/P53Z forms) in case HMRC reviews the case later.