Following on from the background information about the tax system in the ‘Tax essentials’ section, this section provides further details about the tax implications of employment. It is for you if you are an employee on a low income.
Most people who work in the UK are employed. If you are an employee, you may have to deal with HM Revenue & Customs (‘HMRC’) as they assess and collect tax and pay out tax credits and other benefits.
HMRC do not always get things right. So it is important for you to check the tax you pay on your employment income. You should be able to check some of the information in relation to your earnings in your online Personal Tax Account that you can read in our 'Tax Essentials' section. You may need to contact HMRC if you do not understand something or if you disagree with them. We hope this section gives you enough information about employment and tax to feel confident about the action you need to take.
In this section, we provide information and help to encourage you to try and solve any tax problem you may have. It is easier and cheaper in the long run if you can understand and manage your own tax affairs.
In particular, we provide information on the following areas of taxation for employees:
- am I employed, self-employed, both or neither?
- what is the National Minimum Wage or National Living Wage for students?
- 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?
- how do I check my coding notice?
- do I need to complete a tax return?
- what tax do I pay on redundancy payments?
- employment benefits and expenses
- pensions and employees
- what National Insurance do I pay as an employee?
- how do I repay my student loan?
- what if I do not pay enough tax?
- what if I pay too much tax?
- what if I work abroad temporarily?
- first time workers
Throughout this site we can only offer general guidance on tax topics and you should always obtain specific advice before taking any action.
If you are self-employed, we suggest you also visit our ‘self-employment’ section.
If you have come from abroad to study in the UK and are also working, we suggest you also visit our ‘International students’ section.
You also need to understand whether you are entitled to receive government help in the form of tax credits. This is a supplement to a low income (working tax credit) or extra help for those with children (child tax credit). You may live in an area where you have to claim Universal Credit instead of tax credits.
If you think you might be entitled to state benefits, we provide an overview of the main benefits on the LITRG website.
If you do not agree with a decision of HMRC, find out what action you can take on our ‘Tax appeals’ page.
If you are unhappy with the way in which you have been treated by HMRC, you may be able to make a complaint.
HMRC manage the UK tax system. You can find their contact details on the GOV.UK website.
You can find out where to get help from third party organisations in our getting help section.
Finally, if you do not think we have covered what you wanted to know or you would like to tell us of your experiences so that we might learn and try to get things changed, then please do contact us.