Tax & National Insurance

Working part time is essential for most students to remain financially stable alongside their degree. Some thing to remember are... 

  • Your wage slip will state your tax code and this should reflect your personal allowance. 
  • If you work part-time, or just in vacation periods, you may not earn enough to pay tax - however, it may have been deducted automatically based on an assumption of their wages over the whole year, or a tax code error. To avoid paying unnecessary tax you should know what criteria you meet, you can all information here associating to tax as well as national insurance. 
  • You should always keep all tax documents: The P45 , P60, all payslips. You may need these documents to prove income for Student finance, loans, applying for housing, mortgages and more.
  • A P60 is issued each tax year in April/May as long as you continue to be employed as of 5th April, otherwise just the P45 is issued.

National Insurance

What is National Insurance (NI)?

You pay National Insurance contributions to qualify for certain benefits and the State Pension. It is similar to Tax as it is deducted from your pay by your employer and paid direct to HMRC. You will need to have a NI number when you start your employment. 

How much NI do I have to pay?

There are different classes of NI contributions, the type you pay depends on your employment status and how much you earn. You should only pay for the weeks that you earn above the threshold, this means you should not overpay NI.

I don’t have a National Insurance number

If you live in the UK you should receive your NI number automatically on your 16th birthday. If not from the UK, you can apply for a NI number by telephoning Jobcentre Plus. All the information you need to make an application is available on the government website. You must have the right to work in the UK in order to be given a NI number. 

 

DSU does not offer employment advice, if you need help, you should use another service, such as the Citziens Advice Burea, this service is free.