National Insurance and Income Tax

National Insurance Numbers

National Insurance (NI) is a type of tax that is payable as soon as someone becomes employed in the UK. National Insurance Contributions (NIC) are paid whenever an employee earns £110 or more per week. NI is charged at 11% (April 2010). Employers automatically deduct NI from employees’ wages. To do so they will need to have details of the employee’s NI number.

International students need to obtain a number as soon as they receive a job offer, or start a job. It is possible to start work using a temporary NI number whilst their application is being processed.

Applying for a National Insurance Number
Those seeking a National Insurance (NI) number must first contact the Department for Work and Pensions on tel. 0845 600 0643. 

Applicants are then invited for an interview at a local Jobcentre Plus office.  As proof of identity the Jobcentre Plus office will ask for particular documents which might include:

• passport
• proof of UK address (e.g. a utility bill)
• a letter/contract from employer
• birth certificate
• marriage certificate

It can take up to 3 months to process applications, so it is advisable to ask for a temporary number. The permanent number, when it arrives, will be printed onto a plastic card.

Income Tax
All those who live and work in the UK, including international students, must pay income tax if they earn anything over the personal tax allowance limit, currently set at £,6,035 within the tax year which runs from April 6th to April 5th. Employers automatically deduct the tax from employees’ wages. Earnings above the personal allowance are taxed at the levels below:

• 20% on income up to  £37,400
• 40% on income above £37,400.