Tax essentials

Things you need to know to get your tax right.

⚠️ Please note that sometimes links from this website will go directly to our main Low Incomes Tax Reform Group’s (LITRG) website.

Tax can be a complicated subject, so it is important you understand many of the tax basics such as: What is tax? Who collects tax? What are National Insurance contributions? What income is taxable?

What main tax points should I look out for as a student?

Many students work part-time, whether during term time, in vacations or both. This means students often have an income, which then may be subject to tax. Students on an apprenticeship will also be earning while they are on their course. It is important that you understand what income you can earn before you start paying tax and National Insurance contributions, what your payslip shows you and, if you have overpaid tax, how you obtain a refund.

Some students may also have other income such as grants, scholarships or savings and property rent receipts. If you do, do you know if the money you are receiving is taxable or not?

There are other complexities that you may come across as a student. It may be that you have come to the UK to study so you will need to understand how the UK tax system works. Or maybe you are working during a sandwich year as part of your course, going abroad either during your course or when you have graduated, volunteering or working as an intern. All of these may have tax consequences and you need to understand what these are.

Then, after you have finished your course and started work, you may need to start paying back your student loan; do you understand how this repayment will work?

We cover the following areas of tax, linking to our main LITRG website.

Introduction to the tax system

How do I work out my tax?

What income is taxable?

What tax allowances am I entitled to?

What tax rates apply to me?

How is my tax collected?

Do I need to complete a tax return?

How do I claim tax back?

What is National Insurance?

How do I get a National Insurance number?

What is devolution?

What is Scottish income tax?

What is Welsh income tax?

Do I have to join a pension scheme?

Where can I get help? (On the Tax Guide for Students website)

Do students have to pay council tax? (On the Tax Guide for Students website)

Digital services (Dealing with your tax and credits online)

What to do when things go wrong?

Jargon Buster (an easy-to-understand A-Z glossary) (On the Tax Guide for Students website)