What does tax code NT mean?

By PaySlipCheck Editorial · 7 June 2026 · 5 min read

Tax code NT instructs your employer to deduct no Income Tax at all from your earnings under this PAYE. It's a rare code applied only in specific circumstances: when you're a non-UK resident working for a UK employer with HMRC approval, when you're covered by a double-taxation treaty that exempts the UK income, in certain seafarer or diplomatic arrangements, or when HMRC has determined no tax liability exists. NT does not apply to ordinary UK employees — if you see NT on a standard UK job, something is wrong.

Verified against 4 official sources · Last reviewed 7 June 2026

On this page

When NT applies
How NT is calculated mechanically
When NT is wrong
How HMRC issues NT
What NT does NOT cover
Verifying NT is correct for you
NT vs other "no allowance" codes
In short

When NT applies

NT (No Tax) is one of the rarest tax codes. It's issued by HMRC in specific situations:

1. Non-residence with UK employer paying overseas-performed work

If you're a non-UK resident living abroad and your UK employer pays you for work performed entirely outside the UK, the UK has no taxing rights and HMRC issues NT. Common for some remote-working arrangements where the work is genuinely overseas.

2. Double Taxation Treaty relief

UK has bilateral tax treaties with most major countries. If your treaty determines that another country has taxing rights on your employment income, you may apply for treaty relief. If HMRC approves, they issue NT so UK PAYE doesn't double-tax you.

3. Specific HMRC-approved scheme participants

Seafarers' Earnings Deduction: UK seafarers working overseas may qualify for 100% deduction; some arrangements result in NT
Diplomatic and consular staff: foreign diplomatic missions in the UK have statutory tax exemptions for their personnel
Visiting forces: armed services personnel from allied nations under specific status

4. Certain occupational pensions paid abroad

A UK pension paid to a non-resident in a treaty country may have NT applied so the country of residence taxes it.

How NT is calculated mechanically

There's nothing to calculate — NT means zero Income Tax. Every pound paid is paid in full. Your payslip shows:

Gross: full salary
Income Tax: £0
NI: separately calculated (may or may not apply)
Net: gross minus NI

When NT is wrong

NT on an ordinary UK employee working in the UK is wrong. Common error scenarios:

Employer payroll software error: A "no tax" setting was applied incorrectly
HMRC clerical error: NT issued to wrong employee
Stale code after circumstance change: NT was correct when issued (e.g. you were non-resident) but your situation changed and HMRC hasn't updated

If you're an ordinary UK resident on PAYE and see NT, raise it immediately. Tax debt accumulates while NT is in effect, and HMRC will recover it (often with interest and penalties).

How HMRC issues NT

NT codes are not requested by employees directly. The path is usually:

You apply for non-resident status, treaty relief, or specific exemption (via dedicated HMRC forms or your tax agent)
HMRC reviews documentation
If approved, HMRC issues NT directly to your employer
Your payslip shows NT from the next pay cycle

For specific schemes (seafarers, diplomats), HMRC may issue NT based on standing classifications without per-individual approval.

What NT does NOT cover

NT only addresses Income Tax through UK PAYE. It does not automatically exclude:

National Insurance: separate rules, often still applies
Self Assessment Income Tax: if there's any UK liability outside PAYE, it's reportable
Tax in your country of residence: NT removes UK Income Tax but the foreign country usually wants its share
Other UK taxes: VAT, Capital Gains, Inheritance still apply by their own rules

NT is a single-purpose code: it stops UK PAYE Income Tax. Everything else proceeds independently.

Verifying NT is correct for you

If NT appears on your code:

Check your HMRC Personal Tax Account: review the basis given for NT
Confirm your status hasn't changed: are you still non-resident / still covered by treaty / still in the seafarers scheme?
Document the basis in case HMRC reviews later
Submit Self Assessment if obligated: many NT recipients still file Self Assessment to report the situation

If you can't see why NT applies to you, contact HMRC immediately on 0300 200 3300.

NT vs other "no allowance" codes

NT is distinct from codes that result in no tax being deducted at very low income levels:

1257L on £8,000 salary: standard code, but earnings below personal allowance mean no Income Tax — calculated, not NT
0T on £0 salary: no allowance applied, but no earnings means no tax
NT: explicit instruction to apply no Income Tax regardless of earnings

The mechanics matter. NT is a deliberate exemption; the others are just "your earnings don't reach the tax-free threshold."

In short

Tax code NT means no UK Income Tax is deducted from this employment under PAYE. It's rare and only applies in specific situations: non-residence with overseas-performed work, double-taxation treaty relief, seafarers' scheme, diplomatic exemption. Not applicable to ordinary UK employment. For the full tax-code reference, see the tax codes hub →. If you see NT and can't explain why, contact HMRC urgently.

Frequently asked questions

Why might I have an NT tax code?

Most commonly: you're a non-UK resident working for a UK employer but performing the work outside the UK, your country has a double-taxation treaty with the UK that exempts the income, you're a seafarer with Seafarers' Earnings Deduction approved, or you're a foreign diplomat with statutory exemption. HMRC issues NT directly to the employer after confirming the position.

Can I request an NT code?

Not directly — you can't ask for it. NT is HMRC's decision, based on submitted documentation. You apply for non-resident status, treaty relief, or specific exemption, and if HMRC approves, they issue the code to your employer.

Does NT mean I owe no tax?

It means no tax is deducted by your UK employer through PAYE. Whether you owe tax somewhere else (your country of residence, or via Self Assessment if there's any UK liability) depends on your full circumstances. NT is a PAYE instruction, not a comprehensive tax exemption.

What if NT is on my code wrongly?

Your employer would be deducting no tax when they should be. You'd accumulate tax debt that HMRC catches up with through a tax-bill assessment later, often with penalties. Raise the discrepancy urgently — confirm with HMRC whether NT is correct for your situation.

Does NT mean no NI either?

Not necessarily. NT applies to Income Tax only. National Insurance has separate rules and may still be due, depending on residence, treaty position, and the work being performed. For non-UK residents working remotely outside the UK, both Income Tax and NI may not apply — but always verify with HMRC.

Related guides

UK tax codes — A complete UK tax code reference for 2026/27. Covers every letter and
Tax code 1257L — Tax code 1257L is the standard UK tax code for 2026/27. The 1257
Why is my tax code wrong? — A UK tax code can be wrong for six common reasons — benefits in
Tax code on pension income — When you draw pension income (DC drawdown, annuity, DB pension), the
Scottish tax codes (S) — UK tax codes prefixed with S apply Scottish income tax bands rather
Welsh tax codes (C) — Welsh tax codes start with C. The C prefix is reserved by the
Tax code checker guide — Step-by-step guide to using a UK tax code checker effectively. Decode
Tax code W1 — W1 is the weekly emergency tax code suffix. Instead of cumulative
Tax code M1 — M1 (Month 1) is the monthly emergency tax code suffix. Each pay month
Tax code X — Tax code X is a non-cumulative emergency suffix — like W1 or M1, but
Tax code with BiK — Benefits in kind (company car, private medical, beneficial loans,
P2 Notice of Coding — HMRC sends a P2 Notice of Coding when your tax code changes. The
UK monthly budget planner — A workable UK monthly budget planner: confirm your real net pay, list fixed essentials, list variable essentials, set a discretionary cap, set a savings target. Total must equal net pay. Use 50/30/20 as a starting guide, adapt for your housing situation.
Average UK monthly bills — UK average monthly bills in 2026: ~£1,650 for a single adult, £2,400 for a couple, £3,200 for a family of four. Major lines: rent/mortgage (35–45%), food (10–15%), utilities (8–10%), transport (10–15%), insurance + tax + broadband (~10%).
Money left after bills — UK households should target 20–35% of take-home pay as discretionary spend + savings after essential bills. The exact figure depends on salary band, region and household type. This guide gives benchmarks for £25k–£100k earners.
How to track spending — The three methods that actually work for UK spending tracking: automated bank-aggregator apps, a once-a-week spreadsheet, or category-bucket envelope cash. App-based is the lowest-friction; spreadsheet gives the most control; envelope works best for known overspenders.
Inside vs outside IR35 — "Inside IR35" means the contract is treated like employment for
Should I start a Ltd? — Whether to start a UK limited company depends on factors well
Sole trader vs Ltd — Sole trader is the default UK self-employed structure: no setup,

Glossary terms used on this page

Quick definitions for the key terms above.

PAYE — The UK system through which employers deduct Income Tax and National Insurance from employees' pay before paying it to them.
Tax code — A short code on your payslip that tells your employer how much tax-free Personal Allowance to apply to your pay each period.

Sources

All figures on this page are sourced from official UK government publications. We don't cite secondary commentary or other calculator sites.

All tax figures on this page use the same configuration that powers our calculators — see our editorial standards for the review process.

Last reviewed: 7 June 2026. Next review due 7 December 2026.
Recent changes: New tax-code cluster page covering NT (no tax) codes.

Disclaimer: This page provides general information based on published HMRC and gov.scot figures. It is not personal tax or financial advice. For your specific situation, please consult a qualified accountant or contact HMRC directly.