Tax and National Insurance
If you’re one of the many students holding down a job while you study, you need to know about tax.
The government department responsible for tax and National Insurance is Her Majesty’s Revenue & Customs (HMRC).
The HRMC’s Student jobs: paying tax web pages provide information about tax and National Insurance for students.
Under certain circumstances, it’s possible for people to overpay their tax bill, and they can be eligible for refunds of some or all of the tax they’ve paid during the year. Students in part-time work are quite likely to be affected by this. If you have already been working, you can use the Student Tax checker to find out whether you’re entitled to a refund.
Top tax tips
- Tax and National Insurance are deducted from students’ earnings in the same way as with other workers. However, everybody can earn a certain amount tax-free each tax year – the Personal Allowance – which changes every year.
- If you earn less than the Personal Allowance and have paid some tax, you can claim a refund. Use the HMRC Tax checker to help work this out.
- You should receive a P45 form when leaving a job which you will have to give to your next employer. If working on 5 April, you will be given a P60 which summarises earnings and tax and National Insurance deductions from the tax year just finished.
- You are only entitled to one Personal Allowance in any tax year (April to April), even if you have more than one job.
- Tax codes are found on payslips, P45s or P60s. You will either see a number followed by a letter (e.g. 1100L) or just the two letters, BR (Basic Rate – Currently 20%).
- Employers deduct National Insurance contributions from your earnings. Visit the HMRC’s National Insurance web page for more information on this.
- You should tell your employer your National Insurance Number (sometimes abbreviated NIN or NINO). Using it correctly will make sure that National Insurance contributions are recorded against your name and will help to prevent identity theft.
- Non-UK Students should apply for a National Insurance Number by calling the National Insurance number application line on 0345 600 0643. The Careers Service page for international students has a section about National Insurance Numbers in the downloadable file Your guide to finding a part time job as an international student.
- Students with their own businesses need to register with HMRC within 3 months. Tax is payable on profit made in excess of the Personal Allowance – a Self Assessment tax return will enable you to calculate this.
- You should notify HMRC if you change your address.