Income Tax
Students are NOT exempt from paying income tax!
Everyone resident and working in the UK is taxed, but only once earnings reach a certain level. In the tax year 2024-25, you can earn up to £12,570 without being taxed (£241.73 per week). This is called your personal allowance. The tax year starts in the first week of April each year. Student loans do not count as taxable income.
If you are employed, your employer should be responsible for taking any tax from your wages (this is called Pay As You Earn, or PAYE). If you are self-employed, or have taxable income from other sources (e.g. property, investments etc), then you may have to complete a self-assessment form for HMRC.
If you think you have paid too much tax, contact HMRC. If you have paid too much tax then HMRC can send you a repayment at the end of the tax year.
National Insurance
If you earn more than £241 per week (tax year 2024-25) you will have to pay National Insurance contributions. These will be deducted from your pay and should be shown on your payslip.
This overview here provides an overview of the National Insurance process.
If you don’t know your national insurance number you could look at old payslips, your P45 or P60, or follow the steps here to try and locate this.
If you need to apply for a National Insurance Number in order to work in the UK, phone the application line on 0800 141 2075.