UK Tax Codes · 2026/27
NT Tax Code Meaning — No Tax (UK 2026/27)
Who gets the NT tax code?
NT is most often applied to non-UK tax residents whose income would normally be UK-taxable but has been confirmed exempt under a Double Tax Treaty. Also occasionally used on certain pension income for very specific tax-exempt categories. Almost never appears for normal UK PAYE employees.
How NT affects your pay
Under NT, no income tax is deducted at source. Take-home equals gross. This is appropriate only when the income is genuinely tax-exempt under UK rules — which is unusual for typical employees.
When to check this code
If you're a UK tax resident with normal PAYE employment and see NT, contact HMRC immediately — it's likely an error. If you're a non-UK resident or have specific exempt income, NT may be correct but should be confirmed in writing by HMRC.
What to do if it's wrong
Wrong NT codes are a serious problem because you'll owe HMRC the tax that wasn't collected — potentially years of underpayment if uncorrected. Contact HMRC on 0300 200 3300 with details of your residency and circumstances. They'll either confirm NT is correct or issue a corrected code, and may seek to recover unpaid tax.
Example calculation
On £40,000 with NT: £0 tax deducted; gross = take-home = £40,000. If NT is wrong, the eventual tax bill at 1257L would be £5,486 — owed back to HMRC, often via Self Assessment or future code adjustments that recover the deficit over 1-2 years.
Recruiter pro tip
NT codes for UK residents are extremely rare and almost always errors. Don't enjoy the windfall — contact HMRC immediately to verify. Receiving income tax-free that you'll later owe means a lump-sum surprise that typically lands when you can least afford it. Get it corrected fast.
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