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Inland Revenue Requirements

Destination: UK

Money

Income Tax

When you start your first UK job your employer should ask you to complete a P46 form and each time you stop working for an employer, you will be given a P45 form (which records your pay and tax deductions). Retain one sheet for your records and give the rest to your next employer.

At the end of the tax year you will receive a P60 – an annual summary of your pay and the tax that was deducted.

National Insurance (NI) Number

This is unique to you and enables Inland Revenue to monitor your contributions towards social security and pension service, and to track your tax records. The number is also required to access free hospital and doctor services.

To apply for an NI number you need to book an interview with the Department of Work & Pensions.

For the interview you will need to take evidence of your identity such as your birth or marriage certificate, passport, driver's licence, pay slips and/or information about your current employment (if possible) such as a contract, letter from your manager or from recruitment agencies you have registered with. myJobCaddy can provide you with a letter that you are seeking work also. (Please take original documents with you as photocopies will not be accepted.)

Initially you will be provided with a temporary NI number. If you begin work on a temporary NI number, you will be charged at a 'base tax rate' which may mean you pay a higher rate of PAYE initially. If this is the case, complete a Self-Assessment Tax Return at the end of the tax year.

Your permanent NI number may take some time to process — it looks like a money machine card and serves no other purpose other than as a reminder of your number.

For more information on taxation or National Insurance matters check out the following site www.hmrc.gov.uk or get in touch with myJobCaddy on the Contact Us.

Personal Tax Rates

The income tax bands in the UK are fairly standard. Below are tables of the tax rates that apply to individuals for the financial year (2008-2009):

Residents of UK

Taxable Income Tax as a percentage of income (GBP £)
0 – £6,035 Nil
£6,035 – £34,800 20%
Over £34,800 40%

National Insurance Rates

Every employee and employer in the UK is responsible for paying National Insurance contributions as long as the employee's pay is over a certain threshold. This means, unlike income tax, the employer AND employee pay National Insurance.

If working in permanent employment and intending to return home we suggest you take full advantage of your ability to transfer your pension contributions back home. For information about non-UK residents making tax claims when moving back home (or for any other UK Tax queries) we recommend visiting the HM Revenue & Customs website: www.hmrc.gov.uk.