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National Insurance and Income Tax
From The Student RoomTSR Wiki > University > Student Life > Finance and Money Management > National Insurance and Income Tax Students are affected by tax from the day they are born. It mainly costs you in the form of VAT, which is automatically added to your bill when you purchase a product. When it comes to employment, there are a few taxes that you need to be aware of
National InsuranceNational Insurance, known as NI, is automatically taken out of your wage packet and put against your National Insurance number, whenever your wage reaches more than £100 per week. You pay 11% on any money above the £100. Once you have paid National Insurance you cannot claim it back, even if your wage averages less than £100 per week over the year. However, do not feel ripped off. Every year you make a National Insurance contribution goes on your record and will help you when you come to retirement and probably get you a bigger state pension. Income TaxIncome Tax is charged at various rates. Currently there is a no tax threshold to £5,220. Then from there to £7,000 you are charged at 10%. Then from £7,000 to £30K plus you are charged at 22%, then you are charged at 40% above that. Income Tax can be claimed back if you are over paid. However if you are only earning money during the summer holidays, you can fill in a tax form that prevents you being charged income tax and then having to claim it all back the next April after the end of the tax year. The form for this is called a P38S. Ask your employer for one, so you don't pay income tax from the outset Claim Tax BackTo claim tax back you can go to a tax office with your National Insurance Number and proof of your identity including proof of where you live or the easiest way to do it is to write them a letter containing the following details
Click here for an article with details of which tax office to contact Related Articles |
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The Student Room and Acumen PI are trading names of Acumen Professional Intelligence Ltd. Register Number: 04666380 (England and Wales). VAT No. 806 8067 22.
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Registered Office: 33 Bond Street, Brighton, East Sussex. BN1 1RD
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