Janice Lozano
Students on placement may be required to pay income tax and national insurance on their earnings. The rules for national insurance contributions differ from those for tax, and most people who work in the UK, including international students, are liable to pay national insurance contributions as soon as they start working. However, there are certain exceptions, such as international assignees ('posted workers') who remain subject to their home country's social security legislation. It is important to understand the regulations and requirements to ensure compliance with relevant laws and to avoid any potential issues.
| Characteristics | Values |
|---|---|
| Placement students paying national insurance | Placement students do pay National Insurance Contributions. |
| Placement students' national insurance threshold | Placement students will have to pay National Insurance in the tax year 2024/25 if they earn more than £242 in a week and 10% of any amount above this. |
| Placement students' income tax threshold | Placement students will have to pay income tax if they earn more than £12,570 in the tax year 6 April 2025 to 5 April 2026. Any amount above this will be taxed at a rate of 20%. |
| International students paying national insurance | International students are required to pay National Insurance if they work in the UK. |
| International students working in the UK | International students are allowed to work while studying in the UK, but there are restrictions on the type of work. |
| Obtaining a National Insurance Number | You must have the right to work or study in the UK to get a National Insurance Number. You can apply for a National Insurance Number online once you are in the UK. |
| National Insurance Number for international students | If you have previously worked or studied in the UK, you may already have a National Insurance Number. |
| National Insurance contributions | National Insurance contributions are payable on earnings and help to build up entitlement to certain state benefits, such as the State Pension. |
| National Insurance for posted workers | If you are a posted worker, you will normally continue to pay UK National Insurance rather than social security in the other country. |
| Voluntary National Insurance contributions | If you leave the UK, you might decide to continue making National Insurance contributions on a voluntary basis if you intend to claim a UK state pension or return to live in the UK in the future. |
| National Insurance refunds | It is usually not possible to obtain a refund of National Insurance contributions unless they have been paid in error. |
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What You'll Learn
International students and National Insurance
International students are permitted to work while studying in the UK, but certain restrictions are imposed on the type of work they can undertake. Working in violation of the visa conditions is a criminal offence. As an international student, if you undertake a job in the UK, you are required to pay National Insurance (NI) contributions. If you have previously worked or studied in the UK, you may already have an NI number. In case you don't have one, you must apply for a National Insurance number online once you arrive in the UK. You are required to have the right to work or study in the UK to obtain a National Insurance number. It is possible to apply for an NI number while seeking employment. Even without an NI number, you can start working, but once you begin, you must apply for one immediately.
If you already possess an NI number, you need not reapply for another one. You can check if you have an NI number if your parent or guardian filled in a Child Benefit claim form for you. Alternatively, you can apply for one online if they did not fill out the form. If you possess a biometric residence permit (BRP) or eVisa, you may already have an NI number.
To summarise, as an international student working in the UK, you are generally required to pay National Insurance contributions and have a National Insurance number. You can apply for an NI number online, and it is recommended to do so either before starting work or immediately after commencing employment.
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Students are not exempt from tax
Students are not exempt from paying taxes. If you are a student and you work, you must pay taxes on your income, just like everyone else. The amount of tax you pay will depend on how much you earn and whether you are claimed as a dependent, among other factors.
In the US, every citizen or resident must file an income tax return if certain income levels are reached. Even if you are a full-time student, you may still have to pay taxes on your income if you are working. If your income is below a certain level, you may not have to pay any tax and may not need to file a tax return. However, if you have had tax withheld from your pay, you may choose to file a return to get a refund.
International students in the UK are also required to pay National Insurance (NI) contributions if they work. You can apply for an NI number online once you are in the UK, and you must have the right to work or study in the UK to get one. If you already have an NI number from a previous job or period of study in the UK, you do not need to reapply.
There are some specific exemptions from certain taxes for students in certain circumstances. For example, FICA tax exemption may apply to students working during school breaks of five weeks or less, or for teaching assistants and graduate assistants. However, postdoctoral students, postdoctoral fellows, medical residents, and medical interns are not eligible for this exemption.
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Applying for a National Insurance Number
You must apply for a National Insurance number if you plan to work in the UK and don't already have one. You can only apply when you're in the UK and have the right to work or study there. You can apply for an NI number while you're looking for work, and you can even start work without one, but you must apply straight away once you start.
To apply, you must prove your identity online. You may need to enter information from one or more of the following documents:
- Passport
- Birth certificate
- Driving licence
- Marriage or civil partnership certificate
- P45, P60, or a recent payslip
You can still apply if you don't have any of these documents, but you may need to attend an appointment in person to prove your identity. You may be able to prove your identity online by submitting digital photos of your identity documents and yourself. You can use a smartphone, tablet, or digital camera to take the photos. You'll be told how to take the photos and what they must look like during the application process.
After you apply, you'll get an email with your application reference number. It can take up to four weeks to get your National Insurance number after you've proved your identity.
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National Insurance contributions and state benefits
National Insurance contributions (NIC) are payable on earnings, and they help to build up entitlement to certain state benefits, such as the State Pension. The amount of NIC paid is dependent on the amount of money earned each week. For the tax year 2024/25, NIC is payable if the earnings are more than £242 in a week, and 10% of any amount above this threshold.
All employees, including students, must pay NIC on their earnings above a certain level. Students are not exempt from paying NIC, and it is deducted from their salary before they are paid. Students can apply for a National Insurance Number (NINO) to ensure their contributions are correctly recorded. International students working in the UK are also required to pay NIC if they work in the UK and have a UK employer.
If an individual leaves the UK, they can continue to pay Class 3 NIC on a voluntary basis if they intend to claim a UK state pension or return to the UK in the future. To be eligible for this, one of the conditions is that the individual must have lived in the UK for a continuous three-year period at any time before the period for which NIC is to be paid.
For international students who are 'posted workers', the situation is different. If a UK employer asks an employee to work in an EEA country for up to 24 months, they would normally continue to pay UK NIC rather than social security in the other country.
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Working abroad and National Insurance
If you're working abroad, you will usually pay social security contributions (called National Insurance contributions in the UK) in the country where you're working. If you're an international student working in the UK, you are required to pay National Insurance (NI) contributions. You don't need to reapply for an NI number if you already have one. If you don't have one, you must apply for one online once you're in the UK.
You might also need to pay National Insurance in the UK while you're working abroad, depending on the country you're working in and how long you're working there. You can check the guidance on social security abroad (NI38) for a list of countries that have a social security agreement with the UK. If the country you're working in has such an agreement, you'll need to get a ''certificate of coverage' to show that you're paying National Insurance in the UK and do not need to pay social security contributions in the country where you work.
You need to pay National Insurance in the UK for the first 52 weeks of working abroad if you meet certain conditions. Your employer will deduct your National Insurance from your earnings. You might be able to pay voluntary National Insurance contributions in the UK while you're working abroad, depending on your eligibility. You can apply to pay these contributions online. If your application is approved, you will be informed of payment dates and amounts.
Voluntary National Insurance contributions do not cover your health insurance in the country where you live. They also do not cover any period during which you're liable to pay Class 1 National Insurance contributions. However, they can help you qualify for the UK state pension in the future.
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Frequently asked questions
Yes, if you are a placement student in the UK, you will have to pay National Insurance (NI) contributions like any other employed or self-employed individual in the UK.
If you are an international student in the UK, you will have to pay NI contributions if you work in the UK. If you are a 'posted worker', the rules depend on which country you are going to.
You need to obtain a National Insurance Number (NINO) to ensure your contributions are correctly recorded. You can apply for a NINO once you are in the UK and must have the right to work or study to get one. You can apply before or after you get a job.
If you are no longer liable to pay mandatory National Insurance in the UK, you can choose to make voluntary contributions if you intend to claim a UK state pension or return to the UK in the future.
