Income Tax is a tax paid on your earnings above your personal allowance, which is set by government. The money is used by the government to provide funding for public services ie NHS, education, the welfare state, roads, rail and housing.
Students and Income Tax
If your earnings are above a certain threshold, you must pay Income Tax. This applies to all students including international students. Visit Gov.uk's tax pages for information about earnings, personal allowances and tax.
You can find useful information about paying tax on the Tax guide for students on Gov.uk.
If you work for an employer, your Income Tax is normally taken directly from your wages through Pay As You Earn (PAYE).
Tax refunds
If you think you might have paid too much tax, you should contact your tax office at the end of the tax year (March) The tax office can check its records and send you a refund if you've overpaid.
The Tax guide for students on Gov.uk explains how to claim for income tax repayment.
You can use HMRC's tax checker to find out if you might have paid too much tax.
National Insurance contributions
National Insurance is a tax on earnings and self employed profits. Your national insurance contributions are paid into a fund from which some state benefits are paid ie state pension, statutory sick pay, maternity pay or entitlement to unemployment benefits.
National Insurance numbers are set by the Department for Work and Pensions. Each number is unique to you and can help identify your contributions paid. You will use the same NI number throughout your life.
National Insurance contributions - am I liable to pay?
You must pay National Insurance contributions if you earn over a certain amount. For information, visit Gov.uk's national insurance page. All students, including international students, are required to pay. Payments are deducted from your wages by your employer.
If you’re not working and you intend to live permanently in the UK, you can make voluntary National Insurance contributions. This protects your National Insurance record and ensures you receive a full pension when you retire. However, check with the Inland Revenue whether this is worthwhile in your case.
Visit Gov.uk for more information about voluntary contributions.
National Insurance Number applications
If you are a UK national, you should receive a National Insurance number when are 16. If you didn’t, call the National Insurance number helpline (0300 200 3500).
If you are an EU/EEA or international student, you can apply for a National Insurance Number as soon as you are looking for work, or if you already have a job. You can apply online and provide evidence of identity. Please visit the application page on Gov.uk for full information on how to apply. (Some international students may have their NI number printed on their BRP)
Lost National Insurance card?
Keep your National Insurance card in a safe place – if you lose it, you will not be able to get a replacement card. However, you can still use your number without the card.
If you forget or lose your number, you should be able to find it on your payslip or you can visit the find a lost National Insurance Number webpage on Gov.uk.
Further information
Contact Student Advice if you have further questions.