Tax and national insurance

The UK tax system and state benefits

Employees will normally contribute Pay As You Earn (PAYE) Income Tax and National Insurance contributions (NICs) whilst working. PAYE is the system your employer or pension provider uses to take income tax and National Insurance contributions before they pay your wages or pension. Tax rates are set by the Government and the percentage of income you pay in tax will vary according to how much you earn, including any allowances which may count as taxable benefits. For academic staff with joint appointments, income is counted as the combined University and College salary. For some international staff, working here may have implications for your tax status in your home country. Please consult your Departmental Administrator or the Payroll team for advice.

To find out more about tax, National Insurance and other issues related to your pay and conditions of employment: view the information below, talk to your departmental/college administrator or HR representative, or read the relevant Staff Handbook. 

Some staff, or their partners and family members may qualify for state benefits, please read the State Benefits section below which includes a UK Government benefits calculator. 

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General information can be found on the Payroll section of the Finance Division website. New employees from overseas should complete the Starter Checklist available from the HM Revenue & Customs website. If you are seconded to the UK, ie working wholly or partly in the UK whilst remaining employed by an overseas employer, you should complete the Expat Starter Checklist instead. Fill in the appropriate form online, print it out, sign and send to the Payroll team. The information provided will determine which tax code should be applied.  

If you are an academic visitor, a different process applies; please contact the HR team in the department where you will be working for support. 

You must have a National Insurance (NI) number to work in the UK. An NI number is used to uniquely identify individuals for National Insurance contributions and tax collection purposes. It ensures that your contributions and taxes are properly recorded and linked to your name and record with HM Revenue & Customs (HMRC). It also serves as a reference number for social security benefits and tax credits. Anyone between 16 years old and the state pension age who earns above a set annual amount will pay National Insurance Contributions which are collected through payroll and primarily fund the State Pension and certain contributory state benefits. You can apply for a National Insurance number online and notify your Departmental Administrator of your NI number as soon as you receive it.

State benefits in the UK are payments or assistance provided by the government to support people in specific situations such as unemployment, low income, illness, disability, caring responsibilities, or retirement. Some are assessed against household income, some against personal need. See further information about the different types of benefits and use the UK Government benefits calculator to find out if you are entitled to claim.

If you are on a visa of any type, it is highly unlikely you will be entitled and claiming any benefit incorrectly can have a negative impact on future applications for a visa or Indefinite Leave to Remain, contact the Staff Immigration Team for advice. 

Parents with children under the age of 16 (or under 20 if they stay in approved education or training) may qualify for child benefit. This is a tax-free payment to help with the cost of bringing up children (check eligibility for child benefit if you have moved to the UK).

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