National Insurance and Income Tax contributions are taken out of your monthly salary automatically.
All employees in the UK must pay income tax, but the amount you pay will vary depending on the amount you earn. Similarly, not all income is taxable, with tax-free allowance subject to annual change.
You may also have to pay UK Income Tax on foreign income including any wages you earn abroad, foreign investment or rental income from overseas property.
National Insurance is a compulsory deduction from your income that funds state-provided services like pensions and health care. The amount you pay will vary depending on your income, and once you reach state pension age you are no longer required to contribute.
To work in the UK you must have a National Insurance number, which is a personal number issued by the Department of Work and Pension (DWP). It is used to record a person’s NI contribution as well as being a reference number within the social security system. It is not proof of identity.
Should you have any queries regarding your National Insurance registration or other tax issues you should contact HMRC.
Obtaining a National Insurance number
You may already have a NI number which will be printed on the back of your biometric residence permit. If not, you must apply for one as soon as you arrive in the UK.
Once you have applied you will receive a letter from the Department of Work and Pensions asking you to come to a National Insurance number interview. You will need to bring documentation to prove your identity, such as:
- Passport or identity card
- Residence permit
- Birth or adoption certificate
- Driving licence