Janice Lozano
Whether you're a full-time student or not, you'll need to pay National Insurance if you're earning over a certain threshold in the UK. This applies to both UK and international students. If you're working, your employer will usually deduct National Insurance from your wages through Pay As You Earn (PAYE). If you're not working but plan to live in the UK permanently, you may want to make voluntary National Insurance contributions to protect your record and ensure you receive a full pension. To pay National Insurance, you'll need a National Insurance number, which you should receive in a letter when you turn 16.
| Characteristics | Values |
|---|---|
| Student status | Full-time students with a job must pay National Insurance |
| National Insurance threshold | £166 per week or £1,042 per month |
| Income Tax threshold | £242 per week or £1,048 per month |
| International students | Required to pay National Insurance if working in the UK |
| Tax reclaim | Possible when leaving a job by filling a P85 form |
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What You'll Learn
International students and National Insurance
Students with part-time or full-time jobs may need to pay Income Tax and National Insurance. International students in the UK are required to pay National Insurance contributions if they work in the UK. If you are an international student, you may already have a National Insurance number if you have previously worked or studied in the UK. If you do not have one, you must apply for a National Insurance number online once you are in the UK. You must have the right to work or study in the UK to obtain a National Insurance number. You can apply for an NI number while you are looking for work, and you can even start working without one, but you must apply for it as soon as you start working.
If you are an international student at the University of Hertfordshire and want to work for the university, you will be required to show your NI number as part of the Student Application Pack. You may also be required to pay income tax. There is a Personal Allowance (PA) for workers, which means that your earnings are not taxed until you exceed your Personal Allowance threshold. This means that you will become liable to pay income tax once your earnings go over your PA.
If you are an international student at the University of Salford, you can start working before receiving your National Insurance number as long as you can prove your legal right to work in the UK. Inform your employer that you have applied for one and provide it to them once you receive it. Jobcentre Plus may invite you for an interview to discuss your circumstances and the need for an NI number. Let them know that you are an international student at the University of Salford, seeking work or already working. They will inform you of the required documents to prove your identity.
If you normally live and study in the UK but work abroad during the holidays, you will need to pay UK tax on anything you earn above your Personal Allowance. On the other hand, if you work for a foreign employer, you do not need to pay National Insurance in the UK, but you may have to pay contributions in the country you are working in.
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Working while studying
In the UK, students are not exempt from paying National Insurance or income tax. If you have a job while studying, you may need to pay Income Tax and National Insurance. Your employer will usually deduct these from your wages through Pay As You Earn (PAYE). If you're working and studying in the UK, your employer will ask for your National Insurance number to process your wages and make the necessary deductions. You can start working before receiving your National Insurance number, but you must be able to prove your right to work in the UK.
If you're working full-time while studying, it's critical that your employer understands your academic commitments and is flexible with your schedule. Before enrolling in a graduate program, discuss your plans with your manager and research schools that offer worker-friendly programs, such as evening or weekend classes, online courses, or part-time options. Keep in mind that your schedule may also be impacted by out-of-class requirements, such as field research or group projects.
If you're finding it challenging to balance work and full-time studies, consider reducing your course load in consultation with your advisor. Remember that your job may provide necessary benefits, such as health insurance, or tuition assistance. Additionally, working while studying can provide structure to your day and demonstrate your flexibility and resilience to your employer.
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Personal allowance thresholds
Students in the UK are not exempt from paying National Insurance or income tax. If you are a student with a job, your employer will usually deduct income tax and National Insurance from your wages through Pay As You Earn (PAYE).
National Insurance is a mandatory government tax deducted from your pay if you earn over £242 per week. Typically, it amounts to around 12% of your income. International students are also required to pay National Insurance contributions, and refunds are not possible.
The personal allowance threshold is the income level at which people start paying National Insurance or income tax, or have to pay higher rates. These thresholds used to rise every year in line with inflation. However, the previous Conservative government froze the NI threshold and tax-free personal allowance at £12,570 until 2028. Higher-rate tax will continue to apply for earnings above £50,270.
The personal allowance threshold for income tax is the amount of income you can receive each year without having to pay tax on it. This threshold can vary depending on your personal circumstances, such as if you are married or have a disability. For example, in the 2023/24 tax year, the personal allowance for basic rate taxpayers was £12,570. This means that you would not pay income tax on the first £12,570 of your income. If you had a higher income and paid a higher rate of tax, your personal allowance would be lower, for example, £50,270 for additional rate taxpayers.
It's important to note that the personal allowance thresholds for National Insurance and income tax can change over time, and different rules may apply depending on your specific circumstances. You can check the current thresholds and any changes on the government website.
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Getting a National Insurance number
Students in the UK are not exempt from paying National Insurance or income tax. If you have a job while being a student, you may need to pay Income Tax and National Insurance. Your employer will usually deduct these from your wages. International students are also required to pay National Insurance contributions.
Every citizen in the UK receives a National Insurance number at 16, which is essential for employment. This unique number acts as your account for accurate tax and National Insurance contributions. It consists of two letters, six numbers, and a final letter, and it remains the same throughout your life. You can start working before receiving your National Insurance number if you can prove you have the legal right to work in the UK. However, you must inform your employer that you have applied for one and provide it to them once you receive it. Even if you haven't secured a job yet, you can still apply for a National Insurance number by providing evidence of actively seeking work.
If you are an international student, the process of obtaining a National Insurance number may vary. Some sources suggest that you can obtain one by visiting a Jobcentre Plus location and discussing your circumstances. You may be invited for an interview to determine your need for a National Insurance number, and you will need to provide documents to prove your identity.
To find your National Insurance number, you can check certain documents such as your payslips, P60, or letters about tax, pensions, or benefits from HMRC. Alternatively, if you have a personal tax account, you can log in to the gov.uk website and find your National Insurance number online.
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Reclaiming tax
Students in the UK are not exempt from paying National Insurance or income tax. Income tax is deducted from your pay if you earn more than £1,048 a month on average, and you must pay National Insurance if you earn more than £242 per week. If you are a full-time student with a holiday job, you may not need to pay tax through PAYE (Pay As You Earn), but you will still pay National Insurance if you earn more than the weekly threshold. If you have a part-time job during term time, your employer will take care of the paperwork to make sure you don't pay too much tax.
If you think you have overpaid your income tax, you can use the student tax checker to find out if you could be due a refund. You can also use HMRC's tax checker or contact HMRC directly. If you are self-employed, you pay tax through the self-assessment tax return system. If you are employed, you pay tax monthly through the PAYE system, and HMRC will send you a copy of your annual reconciliation check on a form called a P800. If they see that you are owed tax, they will include instructions on how to reclaim it, usually online or via a cheque in the post.
If you are an international student, your UK tax position can become more complex. You need to take into consideration the double taxation treaty between the UK and your country of nationality and the type of studies you are undertaking in the UK. If you leave the UK during a tax year, you can be owed a repayment of income tax for that year. You have four tax years to reclaim what you have overpaid, and you need to let the tax office know when you left the UK along with some other information. Many countries have Double Taxation Treaties with the UK, meaning you only pay income tax in one of the countries. However, some people have to pay it in both the UK and the other country because such a treaty doesn't exist.
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Frequently asked questions
Full-time students are not exempt from paying National Insurance or income tax. If you work in the UK while studying, you will normally pay UK tax and National Insurance. You must pay National Insurance if you earn more than £166 a week or £242 per week, depending on the source.
If you have a job, your employer will usually deduct income tax and National Insurance from your wages through Pay As You Earn (PAYE). If you work for yourself, you will need to fill in a Self Assessment tax return each tax year, where you declare your income and expenses.
Yes, international students are required to pay National Insurance contributions if they work in the UK.
