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Tax and National Insurance information

how much tax and national insurance

Do Students have to pay income tax?

YES! Students are NOT exempt from paying income tax, this includes international students.

Working during semesters/term-time teaching periods

  • Tax will be deducted from your pay if you earn more than £10,600 (personal allowance rate for people born after 5th April 1938) in the tax year. (6th April 2015 to 5th April 2016)
  • If you have paid tax and earned less than than £10,600 in a tax year, you can claim tax back. Information about claiming back tax that you have paid as a tax refund is available here .
  • To claim a tax refund after you have stopped working, you’ll need to fill in a form P50 .
  • For more information on how much tax you have paid use the tax checker. on the HMRC website.

Working during any university vacation periods (Christmas, Easter or the Summer).

During vacation periods - From 6th April 2013 your employer will operate PAYE (Pay As You Earn) to deduct Income Tax and National Insurance from your wages. If you are employed by an employer who is part of the Real Time Information (RTI) pilot, the normal PAYE process will apply from 6 April 2012. For more information visit the relevant HM Revenue & Customs website.

National Minimum Wage Rate Increases effective 1 October 2014

• Workers aged 21 and over will increase to £6.50

• Workers aged 18-20 rate will increase to £5.13

• Workers aged 16-17 rate will increase to £3.79

• Apprentices under 19 or 19 or

over and in the first year of their apprenticeship will increase to £2.73

Agency Workers Regulations effective 1 October 2011

This gives agency workers the entitlement to the same basic employment and working conditions as if they had been recruited directly, if and when they complete a qualifying period of 12 weeks in the same job. The rights to access to facilities and information on job vacancies will apply from day one of an assignment.

Do students have to pay National Insurance?

YES. students are NOT exempt from paying National Insurance!

National Insurance allowance quoted below is for the tax year 2014-2015

  • If you earn less than £155 per week (before tax deductions) you will not have to pay National Insurance.
  • You employer will deduct National Insurance whenever you earn more than £155 in a week.
  • For more detailed information go to H.M. Revenue & Customs
  • Any pay earned above £155 per week personal allowance (before tax deductions) will incur National Insurance contributions of 12% which will automatically be deducted from your pay by your employer.
  • International students are not exempt from National Insurance. For more information please click here .

Help is available:

View information and guides on How to apply for a job vacancy advertised by Careers & Employability.

Contact/Visit us:

Careers & Employability, Floor A, University House, University of Salford, Salford, M5 4WT

Tel: 0161 295 5088

If you need help filling in tax related forms. The following enquiry centres are located in the Salford/Manchester area:

Category: Insurance

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