NT tax code: what it means

What NT means

GOV.UK puts it simply: you're not paying any tax on this income. Payroll deducts no income tax at all from the pay this code covers, whatever the amount. HMRC uses it only in a few situations it has agreed in advance:

• Musicians and similar workers HMRC regards as self-employed and not subject to PAYE (GOV.UK's own example).
• Seafarers who qualify for the Seafarers' Earnings Deduction: they can ask HMRC, on form R44, to authorise the employer to pay without deducting income tax.

How NT shows on a payslip

The tax code reads NT and the income tax line is £0.00. Pay and tax to date still build up for the P60, with tax staying at zero.

NT switches off income tax only. Whether Class 1 National Insurance is due depends on the person's earnings and National Insurance category, not the tax code. In PayDocs' 2026/27 rule set, an employee on NT and category A paid £3,000 in a month has £0.00 income tax and £156.16 employee National Insurance.

What the employer does

• Use NT only when HMRC has issued it for that employee, on a tax code notice or through your payroll software.
• Never choose NT yourself because someone says they pay their own tax. Without HMRC's code, use the starter checklist or P45 as normal.
• Keep the notice with the payroll record.
• If HMRC later replaces NT, apply the new code from the next payday.

Questions

Sources

• GOV.UK — Tax codes: what your tax code means
• GOV.UK — Understanding your employees' tax codes: what the letters mean
• HMRC — Request for Seafarers' NT Code for Income Tax (R44)
• HMRC — Rates and thresholds for employers 2026 to 2027

Official sources checked 4 October 2026. This guide explains how pay documents work; it is not tax or legal advice.