Do I have to pay tax and National Insurance?

You might have heard that students do not have to pay tax and National Insurance, but unfortunately that is a myth!

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Yes, you probably do need to pay tax and National Insurance

Students are subject to the same rules as everyone else, and although most allowances, grants, and student loans are not considered as taxable income, earnings from paid work are. Generally, you will only have to pay tax if you earn over £1,042 a month and National Insurance if you earn over £190 a week.

If you are an employee, tax and National Insurance will be deducted directly from your wages by your employer. If you change employer, you should give your new employer a copy of your P45 to ensure you do not pay too much tax on earnings. If you don't have a P45 you should be asked to complete a 'starter declaration' instead.

International students

International students, please see the information on the gov.uk website about tax on foreign income and scroll down to 'if you work in the UK'. Also, see the section below for details of how to apply for a National Insurance number.