PAYE11010 - Coding: codes: how they are used and calculated: cases where you should use code NT

The list below shows the only cases where you should use code NT

• If there is doubt whether a payment will constitute pay. The Employment Income (EIM) Manual tells you what constitutes pay
• Where questions arise about residence or payments outside the UK (see the Employment Procedures (EP) Manual at EP8135 - EP8170)
• Clergymen and Ministers of religion in certain circumstances. These are explained in the Employment Income (EIM) Manual
• Visiting teachers, students and others exempt under a double taxation agreement. The Double Taxation (DT) Manual explains these cases
• Where an employee continues in the same employment or pensioner remains with the same pension provider and is the subject of a receiving order. Use code NT from the date of bankruptcy to the following 5 April (remember to give the correct allowances in CY+1)
• Where the earnings are paid in the course of a trade or profession and are self assessed as profits of the trade or profession. Examples are payments to actors, musicians or other entertainers, director’s fees received by partnerships and companies. The Employment Income (EIM) Manual tells you what is assessable as PAYE income
• Where a person self assesses on trading or other non-PAYE income and holds a PAYE post as a small part of their main work

Note: Issue a manual P6 for NT cases, the system will display a message ‘Employer Output Inhibited’ where NT tax code has been calculated. Select manual issue on the P6/P9 drop down box in these cases.