Income Tax and National Insurance (NI) are two types of tax that may be taken from your earnings when you work in the UK. Whether you’re a UK or international student, you may need to pay them depending on how much you earn. This guide explains when you need to pay, how the system works, and where to get help.
Income Tax
When do students pay Income Tax?
You only pay Income Tax if your earnings go above the Personal Allowance, which is the amount you can earn each tax year before tax is deducted.
For 2026–27, the Personal Allowance is: £12,570 per year. If your total income stays below this amount, you won’t pay any Income Tax.
How Income Tax is collected
If you work for an employer, your tax is usually taken automatically through PAYE (Pay As You Earn). This means tax is deducted before your wages reach your bank account.
What Income Tax pays for
Income Tax helps fund public services such as the NHS, education, transport, welfare, and housing. For more details, see Student Jobs: Paying Tax.
Tax refunds
Students sometimes overpay tax, especially if they work seasonal or part time jobs. You may be able to claim a refund if:
- You stopped working partway through the year.
- You had more than one job.
- Your employer used the wrong tax code.
You can check using HMRC’s online tax checker and apply for a refund if needed.
National Insurance
What is National Insurance?
National Insurance is another tax taken from your earnings. Your contributions go towards benefits such as:
- The State Pension
- Statutory Sick Pay
- Maternity/Paternity Pay
- Unemployment related benefits
When do students pay National Insurance?
You only pay National Insurance if you earn more than £242 per week. In 2026, the rates are:
- 8% on earnings between £242 and £967 per week
- 2% on earnings above £967 per week
- If you earn below the threshold, you won’t pay NI.
If you earn below the threshold, you won’t pay NI.
Voluntary NI contributions
If you’re not working but plan to live in the UK long term, you may choose to make voluntary NI contributions to protect your record for the State Pension. This is optional but can be useful if you have gaps in your NI history.
For more details, see GOV.UK information.
National insurance number
A National Insurance number ensures your tax and NI contributions are recorded correctly.
If you’re a UK national
Most UK citizens receive their NI number automatically at age 16. If you didn’t receive it, you can call the National Insurance helpline on 0300 200 3500.
If you’re an international or EU/EEA student
You can apply for an NI number once you start looking for work or if you already have a job.
For details on how to apply, see the application page on GOV.UK.
Key points for students
- You only pay Income Tax if you earn more than £12,570 in a tax year.
- You only pay National Insurance if your earnings exceed the NI thresholds.
- Most students working part time do not earn enough to pay either tax.
- If you think you’ve overpaid, you can claim a refund.
- You need a National Insurance number to work in the UK.
- International students can apply for an NI number once they start job seeking.
Contact us
For basic questions about Income Tax or National Insurance, please contact the Student Centre. Email us about Income Tax and National Insurance