HMRC internal manual

PAYE Manual

Coding: coding: general principles: exceptions from normal deduction scheme

In some special cases we need to tell the employer not to deduct tax from the pay. This may be because the person is exempt from tax, certain visiting teachers from abroad are an example, and we have agreed to deal with the income under self assessment, examples are auditors and engineers.

In these cases we tell the employer to use code NT. This tells them not to deduct tax from the pay. PAYE11010 includes a list of these cases.