What is an NT tax code? | NT Tax codes explained

Last reviewed January 2023

A tax code is a string of numbers and letters that tells your employer how your earnings should be taxed. You get one for each Pay As You Earn (PAYE) job you have, and it’s important to keep track of them. Any time your tax code changes, HMRC will alter the Income Tax you’re paying each year.

If you’ve got an NT tax code for your job, you’re in a pretty unusual position. The NT code actually means that you aren’t paying Income Tax at all on your earnings from this job!

There are actually quite a few reasons why you might get an NT tax code. For example:

You might be a non-UK resident for tax purposes, residing in a country that operates a “double taxation” agreement with the UK.
You might be reporting this income to HMRC some other way, perhaps along with self-employment earnings.
You might work in film or TV, and be allowed to get paid for up to 6 days of work without paying tax.
You might be given an NT tax code temporarily if you’re working while bankrupt.

Keep in mind that having an NT tax code only lets you off the hook for Income Tax. You could still have to pay National Insurance Contributions (NICs) out of your earnings.

Example of PAYE on tax code NT

With a normal tax code like 1257L, you get a tax-free Personal Allowance before you start paying tax at the basic rate. An NT tax code is very different, though, since it basically tells your employer not to take any Income Tax out of your pay at all!

As we mentioned above, this still doesn’t mean you won’t have to cough up your normal National Insurance payments, though. In fact, you wouldn’t even want it to, since your NICs entitle you to key things like the State Pension.

How to change my NT tax code

Most of the time, HMRC will alter your tax code for you as your circumstances change. However, there are times when you might end up on the wrong tax code – and when that happens you need to get it fixed fast. It’s your responsibility to get the problem sorted, and things can get very tricky if you don’t.

Getting an NT tax code might seem like a great deal – as long as it’s not a mistake. Remember, paying less tax than you owe is usually even worse than paying too much. When HMRC catches on, you can quickly find yourself getting stung with fines and penalties – or even a criminal record!

If you think your tax code’s wrong, you need to contact HMRC to make sure they have the information they need to put it right. If you’re claiming a tax rebate with RIFT, of course, we’ll check your tax code for you as part of the service. If you’re ever given the wrong code, we’ll get it corrected for you.

Could I be due a tax rebate?

Being on the wrong tax code can easily leave you paying the wrong amount of Income Tax on your earnings. For example, this can happen when:

You change jobs and your new employer doesn’t have the information they need to tax your pay properly.

You have a spouse who isn’t using all of their tax-free Personal Allowance, and you’re not claiming Marriage Allowance to transfer a chunk of their allowance to you.

You’ve claimed tax back and HMRC has altered your tax code to factor in your expenses. If those expenses change from year to year, your tax code can end up wrong.

Any of these situations can mean you’re paying too much Income Tax and might be able to claim a tax refund. Get in touch with RIFT to find out more about tax rebates, and to see how the UK’s leading experts can get back everything you’re owed.

What is an NT tax code and why have I got it?

Example of PAYE on tax code NT

How to change my NT tax code

Could I be due a tax rebate?

More on tax codes

W1 Tax Code

K Tax Code

BR Tax Code

Want more?Want to save some money?

What is an NT tax code and why have I got it?​

Example of PAYE on tax code NT

How to change my NT tax code

Could I be due a tax rebate?

More on tax codes

W1 Tax Code

K Tax Code

BR Tax Code

Want more?Want to save some money?

What is an NT tax code and why have I got it?