What does NT mean on my UK tax code?

NT means "No Tax" — your employer or pension provider should deduct zero income tax from your pay under this code. It's rare and only applied in specific circumstances: non-UK residents under double-taxation treaties, certain pension payments, or HMRC manual overrides.

Is NT the same as earning under £12,570?

No. Earning under the £12,570 Personal Allowance means you pay £0 tax but your code is still 1257L (or equivalent). NT is a different code that explicitly says "deduct no tax regardless of pay level". The two outcomes can look the same on a low-pay payslip but the codes are distinct.

Will I owe back tax if my NT code is wrong?

Yes, almost certainly. HMRC reconciles tax positions annually. If NT was applied in error, the missing tax will be recovered via a corrected code, P800 letter, or Self Assessment requirement — sometimes with interest. The earlier you flag the error to HMRC, the smaller the eventual bill.

Why is my tax code NT?

Last reviewed by the UK Tax Drag editorial team · 12 May 2026 · How we review · Next review due 12 May 2027 · See what changed · Report an error

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NT means “No Tax”. The employer or pension provider deducts zero income tax from your pay or pension under this code. NT is applied in specific cases: non-UK residents under double-taxation treaties, tax already paid elsewhere in the year, or specific HMRC instruction for unusual income. NT does not exempt you from NI on employment income.

When NT is correct

NT is legitimately applied in these scenarios:

Non-UK tax resident under a double-taxation treaty. If you live in a country that has a DTT with the UK and the treaty assigns taxing rights to your residence country, HMRC may issue NT to a UK pension or salary.
Tax already collected elsewhere. Rare — sometimes used when a payment is reported in two ways and tax has already been paid on one route.
Deferred or rolled-over income. Some specific occupational pension or share scheme payments may use NT to align with the actual tax timing.
Bereavement payments below threshold. Lump-sum death benefits within the LSDBA limit are tax-free; some providers use NT for these.
HMRC manual override. In specific cases (Self Assessment investigations, complex tax positions), HMRC may issue NT as a temporary measure while a longer-term solution is found.

When NT is wrong (or confusing)

Watch outNT on UK employment income is almost always wrong. UK-resident employees should pay income tax — exceptions are extremely rare. If your payslip shows NT and you’re a UK resident, contact HMRC immediately on 0300 200 3300. You will owe the tax later (with potential interest) if NT was applied in error.

Common mistakes that look like NT but aren’t:

Genuinely earning under £12,570 — your tax code is still 1257L, but the tax deducted is £0 because you’re below the PA threshold. This isn’t NT.
BR code with zero tax due — would only happen if you have £0 of pay, which is unusual.
Receiving tax-free pension lump sum (the 25% PCLS) — this is paid gross by the pension provider but isn’t under an NT code; it’s outside PAYE entirely.

How NT differs from "earning below PA"

	Tax code 1257L, earning £8,000	Tax code NT, earning £30,000
Tax deducted	£0	£0
Why?	Below £12,570 PA	HMRC instructed no tax
Code on payslip	1257L	NT
If pay rises above PA?	Tax automatically calculated	Still no tax (until code changes)
NI still applies?	Yes (8% above £12,570)	Yes (NI is separate from income tax)

So earning £8,000 a year as a teenager with a part-time job is not an NT code — it’s 1257L producing zero tax because earnings are below PA.

What to do if NT appears unexpectedly

Action 1: Verify with your P2 coding noticeHMRC’s P2 letter explains why NT was applied. Check your Personal Tax Account for the most recent coding notice.

Action 2: Phone HMRC immediately on 0300 200 3300UK-resident employees rarely qualify for NT. Confirming early prevents a large tax bill later. Have your NI number, payslip, and any HMRC correspondence ready.

Action 3: Set aside the expected taxIf NT is wrong, HMRC will eventually recover the missing tax via a corrected code, P800 letter, or Self Assessment. Better to save the equivalent tax in a separate account in the meantime than be surprised.

Action 4: Confirm your residency statusIf you’ve recently moved abroad or have unusual residence circumstances (split-year treatment, dual residence under a treaty), the NT may be correct. The HMRC Statutory Residence Test at gov.uk/tax-foreign-income/residence applies.

Check whether you should be paying tax

The marginal tax rate calculator and tax calculator show what tax you should owe at your income and residence status. The HMRC letter decoder explains P2 coding notices.

Check marginal rate →

Other UK tax codes explained

Sources and methodology

NT code rules from gov.uk/tax-codes. Double-taxation treaties at gov.uk/government/collections/tax-treaties. Statutory Residence Test at gov.uk/tax-foreign-income/residence.

UK Tax Drag is not authorised by the Financial Conduct Authority and does not provide regulated financial advice — see the content disclaimer for the full position. The methodology page documents how every calculator is built and reviewed.

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