This page contains information on the UK minimum wage and the taxes that may be deducted from your earnings.
The UK Government will make deductions from your wages for National Insurance (NI) contributions, which are used for funding the state welfare system (eg NHS and benefits). If you earn above £146 a week your wages will be deducted for NI contributions. You cannot reclaim NI deductions.
Once you have a job and can provide confirmation of this (for example an employment contract), you need to apply for a National Insurance (NI) number.
To do this you need to call the JobCentreplus National Insurance Number Allocation Office on 08456 000643. You will be asked a number of questions (eg your personal details, employers details) and will then be required to attend an appointment at a local Jobcentre Plus branch. You will be asked to bring documents to this appointment so that they can be checked.
This procedure can take a number of weeks, therefore during this time you can work using a temporary NI number. You should be able to get this from your employer. If not then contact the Job Zone or the Advice and Representation Centre (ARC) for further information.
For further information on National Insurance please phone the National Insurance Enquiry Line: 0845 302 1479.
Everyone in the UK, including students, has to pay tax on their earnings. The government department that deals with this is called the Inland Revenue. The amount of tax that you have to pay depends on how much you earn. The tax is paid by your employer and is deducted from your wages each time you are paid (known as 'PAYE'- pay as you earn). This will be displayed on your payslip.
All adults are entitled to a 'Personal Allowance' which is an amount of income that you can earn without being taxed on it each year. The figure for the tax year April 2012 to April 2013 will be £8105 per year.
The amount you earn over the personal allowance between April 2012 and April 2013 will be taxed on.
If your employer has taxed you (eg if you earn above the personal allowance each week or month) but you do not earn above your personal allowance during the tax year (£8105), you can reclaim the tax that you have paid from the Inland Revenue.
If you only intend to work during vacations and do not expect to earn more than the personal allowance (£8105) in the tax year, you should ask your employer for a P38(S) form. By completing the form your employer will not deduct tax from your wages.
For further information on income tax please visit: the HMRC income tax pages or telephone Income Tax enquiries on 0845 302 1437.
Workers in the UK have a National Minimum Wage, which is set by the government. This is the legal minimum amount per hour, that an employer must pay. There are different rates for different ages:
On 1 October 2011 the minimum wage for workers aged 21 and over was set at £6.08 an hour.
On 1 October 2011 the minimum wage for workers aged between 18 and 21 was set at £4.98 per hour.
The minimum wage for workers aged between 16 to 17 is £3.68.
For further information please visit: the HMRC national minimum wage pages or contact the national minimum wage helpline on 0800 917 238.
