Student jobs: paying tax
If you have a job when you’re a student you may need to pay Income Tax and National Insurance.
Tax and National Insurance
You have to pay:
- Income Tax if you earn more than £958 a month on average - this is your Personal Allowance
- National Insurance if you earn more than £157 a week
Your employer will usually deduct Income Tax and National Insurance from your wages through Pay As You Earn (PAYE).
If you’ve paid too much tax
If you’ve paid tax and stop working part way through the tax year you may be able to claim a refund.
Holiday jobs abroad
If you normally live and study in the UK but work abroad during the holidays you’ll need to pay:
- UK tax on anything you earn above your Personal Allowance
- National Insurance if you work for a UK employer
If you work for a foreign employer you don’t need to pay National Insurance in the UK, but you might have to pay contributions in the country you’re working in.
If you’re self-employed
If you work for yourself you need to fill in a Self Assessment tax return each tax year, with details of your income and expenses. HMRC will then work out how much tax you need to pay.
Foreign students working in the UK
Some double-taxation agreements mean you don’t pay UK tax on your income if you work while you’re a student.
If your country doesn’t have an agreement like this, you have to pay tax in the same way as others who come to live in the UK.