Income Tax/National Insurance
Students are NOT exempt from paying tax! Every person working in the UK is taxed, but only once your earnings reach a certain level. In 2007-08, you can earn up to £5225 without being taxed. This is called your personal allowance.
In order to make sure you are not taxed on the first £5225 of your earnings you need to make a declaration to the Inland Revenue. This can be done by completing the relevant tax forms for every job you do:
- P46 for any part-time or temporary work during semster or vacation
- P38(S) if you only work the vacations. (If you do any work during semester you need a P46 instead).
If you think you have paid too much tax, contact your Tax Office. If you have paid too much tax then the Tax Office can send you a repayment at the end of the tax year.
If you earn more than £100 per week you will have to pay National Insurance contributions. These will be deducted from your pay and should be shown on your payslip.
If you don’t have your national insurance number you could look at old payslips, your P45 or P60, or you can apply for a new card from your local Department of Work and Pensions office. To find your nearest office go to http://www.jobcentreplus.gov.uk