INCOME TAX
If you work in the UK, you will have to pay income tax. This tax is collected by the government department known as the Inland Revenue.
Tax is paid based on your income during the tax year, which starts on April 6th and ends on April 5th in the following year.
In the 2002/3 tax year (for income earned between April 6th 2002 and April 5th 2003), the income tax bands were as follows:
0% on the first £4,615 (your personal allowance, equivalent to about £89 per week, or £385 per month)
10% on the next £1,920 (equivalent to about £37 per week, or £160 per month)
22% on the next £27,980 (equivalent to about £538 per week, or £2,332 per month)
40% on any income above this
For information about tax for students, see: http://www.inlandrevenue.gov.uk/pdfs/ir60.htm.
For students from abroad, how your earnings are treated for tax and National Insurance will depend upon a number of factors. If you would like further information you can contact the Centre for Non-Residents helpline on [tel]from the UK or, from outside the UK, dial the international code then 151 21[tel]to make sure you don’t pay too much tax.
If you have paid tax and your total taxable income for the year doesn’t go above your personal allowance, you may claim a refund. You can even do this during the tax year if your income for the tax year is likely to remain below your personal allowance. If you think you have paid too much tax ask your Tax Office for a repayment claim form.
Pay-as-you-earn (PAYE)
You normally have to pay tax each time you are paid by your employer. This system is known as pay-as-you-earn (or PAYE). You may be sent a PAYE Coding Notice which shows your tax code, which is is used by your employer's pay system to calculate how much tax you pay (it will show your personal allowance, which is the amount you can earn during a tax year without paying any tax, and it may show the value of some benefits from your employer on which tax is payable).
At the end of the tax year (some time after 5 April), you should receive a P60 (End of Year Certificate) from your employer. Ask your Tax Office to review your position at the end of the tax year to see if a repayment is due