Alongside opening up a bank account, setting up the correct tax code and national insurance number is crucial when starting a new job in the UK. You will have to pay income tax when you start earning, for most new arrivals to the UK this means money you earn from employment.
Income Tax
How much income tax you pay each tax year depends on how much of your income is above your Personal Allowance and which Tax Band you enter, the tax year begins on the 6th of April each year.
The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. After this you will enter one of the below Tax Bands.
| Band | Taxable income | Tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | over £125,140 | 45% |
National Insurance
National Insurance contributions are a tax on earnings and self-employed profits paid by employees, employers and the self-employed. The payments became law with the introduction of the National Insurance Act 1911. National Insurance contributions are paid by UK workers and employers in order to fund state benefits such as State Pension and the National Health System (NHS). Some social security benefits will be dependant on payment of sufficient National Insurance Contributions
Tax Refund
If you only work in the UK for a few months you may have paid too much tax, This is because your contributions are divided based on you working 12 months.
We suggest using a qualified accountant to handle this process as it can become quite complex. These experts will take away the hassle and deal with your tax affairs in a professional manner. This includes income tax refunds, completing your tax return, calculating the total refund, dealing with HMRC on your behalf and being available for all queries and questions you may have.
Latest Articles
How to get Certificate of Sponsorship UK 2025 [CoS]
International recruitment is becoming increasingly necessary for UK businesses to help fill skills shortages. Hiring from overseas on certain work visas requires a Certificate of Sponsorship UK (CoS) from a licensed employer. In this article we will breakdown the main steps required to obtain a Certificate of Sponsorship UK and which work visas require it […]
NHS Jobs for Nurses – Nursing Jobs in UK Vacancies [2025]
NHS jobs for nurses in the UK is on the increase with great opportunities for visa sponsorship. Registered nurses are currently on the Skilled Worker Occupations List on SOC code 2231 to 2237. Registered nurses are needed in England, Scotland, Wales and Northern Ireland with the National Health Service (NHS) employing from overseas to help […]
Immigration Salary List UK – Skilled Worker Visa [2025]
The Immigration Salary List UK (ISL) is a shortage occupations list that shows careers in demand across England, Scotland, Wales and Northern Ireland. The Immigration Salary List UK is not to be confused with other lists such as the Skilled Worker Occupation List or Healthcare and Education Shortage Occupation List. Depending on your job role or Standard Occupational […]
UK Bank Holidays 2025 – [Full List]
A bank holiday is a public holiday in the United Kingdom during which most businesses, organisations and schools are closed. These holidays originated to provide a day off for bank employees but have since become a day of rest or celebration for the whole country. There will be at least 8 UK Bank Holidays 2025, […]
England v Scotland – Best Places to Live in the UK [2025]
The United Kingdom is blessed with numerous cities offering a good quality of life and employment opportunities. Each city offers a different lifestyle and culture from bustling 24 hour cities, to medieval or a life by the sea. When comparing England v Scotland your personal circumstances will influence which city is right for you. Depending […]
UK Work Visa from India – Shortage Occupation [2025]
The United Kingdom has long been an attractive destination for skilled professionals from across the globe, including India. 131,067 Indians moved to the UK from June 2023 to June 2024 on work visas. With the presence of global companies, a large economy, a diverse job market, a UK work visa from India is becoming increasingly […]
Carer Jobs in UK with Visa Sponsorship [2025]
In recent years, the UK has experienced increasing demand for carers to provide support for its aging population. Carer jobs in UK with visa sponsorship is one of the most popular visa routes due to a skills shortage throughout the country. The most popular visa route is the Health and Care Worker but there is […]
Top 10 – Best Weekend Away in the UK
When looking for an ideal weekend away in the UK, it is important to choose a place to match what you want to do! The UK has modern bustling cities such as London and Edinburgh to quiet, peaceful and rural areas such as the Scottish Highlands and Cornwall. We have picked out our favourite top […]