A Guide On How Foreign Income & Gains Of International Students Are Taxed
Tax can be tricky when you are working as a temp. Whether you’re temping in an office, or covering events, it’s important to keep track of what you’re earning and what you’re being taxed.
As a temporary worker it’s quite possible you’ll be on emergency tax, so once the tax year is out you could be owed a tax refund.
Common office work temp jobs include covering reception, admin, touch-typing and general office support.
Tax Tips for Temps
National insurance and tax are two of the most complicated things you need to deal with when working full time, temping or while working and studying at the same time. They’re both parts of the earning process in the UK and one you should familiarize with at the most basic level.
Tax for temps in the UK
If you have a P45 for the current tax:
- Part 1 will be sent to HM Revenue and Customs by your employer
(For temps this will mean your temping agency)
- Part 1A should be kept for your own records
- Parts 2 and 3 should be given to your new employer, or to
Jobcentre Plus. if you’re not working
If you don’t have a P45, you need to fill out a form P46, which you must present to a new employer.
Completing these forms and submitting them to the right body will spare you from being over taxed.
A lot of students will carry out temp work during the holidays, so if you are a student working on holiday within the UK and EU, you must provide your new employer with a P46 form and then pay taxes. If you work outside the UK and EU, you still need to complete the same document and pay tax at the standard PAYE rates. If you want to reclaim any tax paid upon leaving employment, you must contact and inform HMRC about it.
How much tax you pay depends on your tax code, and the income you earn above your Personal Allowance or PAYE threshold. It’s important you check your tax code to ensure you’re not on emergency tax. If you are on an emergency tax code this will be because your employer does not know which code you should be on.
National Insurance (NI)
When you start working in the UK you will need your National Insurance number. If you’re a foreign working in the UK, an NI number will be printed on the back of your biometric residence permit (BRP). If there isn’t one, then you need to apply once you arrive in the UK. If you’re exempt from NI, you need to provide proof of the exemption.
Think you may be due a tax refund? Apply here to get your tax back.