Understanding the NT Tax Code: A Guide for UK Expats in the USA
- Toni Sculthorpe
- Sep 27
- 2 min read
Updated: Sep 28
What is the NT Tax Code?
The NT tax code (short for No Tax) is a special tax code issued by HMRC. It tells your UK employer or pension provider not to deduct UK income tax at source.
Instead, your income will be taxed in the country where you live—such as the USA—under the UK–US Double Taxation Treaty. This prevents you from paying tax twice on the same income.
💡 Important: The NT code doesn’t mean the income is tax-free. It just shifts the tax responsibility to your country of residence.
Who Can Benefit from the NT Tax Code?
You may qualify if you are:
A UK citizen who has moved abroad permanently.
Now non-resident for UK tax purposes.
Still receiving UK income (salary, pension, allowances).
Covered by the UK–US tax treaty, which means your income should be taxed in the USA instead of the UK.
How to Apply for an NT Tax Code
Getting an NT code requires proof of your tax residency. Here’s a simplified process:
Complete Form P85 when leaving the UK.
Submit Form DT/Individual to claim double taxation relief.
Obtain a US Tax Residency Certificate from the IRS.
HMRC reviews your application and, if successful, updates your tax code to NT.
📌 The process can take a few months. Having the right paperwork upfront makes approval faster.
Common Scenarios for UK–US Expats
UK salary after moving abroad → NT code ensures your income is only taxed in the USA.
UK private pensions → Taxed in your country of residence (USA), not in the UK.
UK dividends and rental income → Usually remain taxable in the UK, but foreign tax credits may apply in the USA.
Why the NT Code Matters
Without the NT code, you could end up with UK tax deducted and still owe tax in the USA. While foreign tax credits may help, the NT code avoids messy double taxation issues and improves cash flow.
FAQs About the NT Tax Code
❓ Does the NT tax code mean I pay no tax at all?No. It just means you pay tax in the USA instead of the UK.
❓ How long does it take to get an NT code?Usually several months, depending on HMRC’s processing times and whether your forms are complete.
❓ Can I apply for an NT code if I still have UK rental income?No. Rental income usually stays taxable in the UK, but you can often claim tax relief in the USA.
How Avante Tax Helps UK–US Expats
At Avante Tax, we specialise in UK–US expat taxes. We can:
Review your eligibility for an NT tax code.
Handle the HMRC paperwork and US residency certificates.
Make sure your UK and US tax returns are aligned under the tax treaty.
Help you avoid double taxation and stay compliant in both countries.
✨ Next Steps
👉 Book a free consultation with Avante Tax today to see if you qualify for the NT tax code.
We’ll take the stress out of UK–US tax compliance—so you can focus on enjoying life in the USA.
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