Part-time and Vacation Work
Working part-time or during vacations can help to increase your income or fund your studies.
There are many ways of finding work online.
As well as recruitment agencies and dedicated job search sites, large organisations and local authorities sometimes list their job vacancies online. The University Careers Service is also a good place to start if you're job hunting.
Whether you work during term-time or just in the holidays, you’ll normally have tax and National Insurance deducted from your earnings.
The tax year
Each tax year begins on 6 April and ends on 5 April in the following year.
Personal allowance
You can earn a certain amount of money tax-free in each tax year. This is known as your personal allowance, find out more about your personal allowance and tax rates here.
Tax refund
As a student, you're taxed on your wages from employment in the same way as anyone else. Many students pay too much tax under PAYE and have to claim a refund:
- if you earn less than your personal allowance but have paid tax, you can claim a refund (use GOV.UK's income tax calculator to see whether you’re entitled to a refund)
- if you don't intend to work any more during the current tax year, you can claim a refund on the tax you've paid before the end of the tax year (claim an in-year tax repayment using form P50)
At the end of the tax year, you’ll need to write to HMRC. Mark the top of your letter clearly ‘repayment claim’ so HMRC prioritise it.
You have four years from the end of the tax year to claim a refund. If you don't make a claim within the time limit, you’ll lose out on your refund.
Paying tax on interest
If you're on a low income and have savings with a bank or building society, you could be paying tax on your interest when you don't need to. If this is the case, register to have the interest paid tax-free. You can also claim a refund of any tax you've overpaid.
To prevent tax being deducted from your interest, ask your bank for an R85 form. International students need to complete a R105 form.
For further information, contact HM Revenue and Customs (HMRC).
Find out more
- Tax Guide for Students: Low Income Tax Reform Group
- HM Revenue and Customs: GOV.UK
If you’re an employee or self-employed and your earnings are over a certain amount, you’ll pay NI contributions (NICs). This builds up your entitlement to certain social security benefits, including the state pension.
Paying National Insurance contributions
Find out current rates for National Insurance contributions at GOV.UK.
You may also have to pay NICs if you run your own business, depending on your earnings from self-employment.
National Insurance Number (NINO)
You’ll usually receive a NINO card when you reach the age of 16. Make sure you:
- always quote your NINO correctly
- give it to your employer when you start work
- quote it if you need to contact HM Revenue and Customs
Using your NINO correctly will make sure the NI contributions you pay are recorded against your name and will help to prevent identity theft. It will also make sure you pay the right amount of tax.
How to get a National Insurance Number (NINO)
If you’re an international student, you may already have a National Insurance (NI) number which will be printed on the back of your biometric residence permit (BRP). If you don't have one, apply by calling the National Insurance number application line on 0800 141 2075.
If you have more than one job
If you work for more than one employer and their businesses are not associated with each other, they will look at earning thresholds separately.
If you have two employers paying you £100 each per week, you would not have to pay NI contributions, even though the total you earn is £200. This is because neither employer is paying you above the earnings threshold. This is different to income tax, where all your income is added together to see if you need to pay tax.
Find out more
- Tax Guide for Students: Low Income Tax Reform Group
- GOV.UK: information about National Insurance / detailed guidance
Every April the rates for the National Minimum Wage and the National Living Wage change.
Adults aged 25 and over are entitled to be paid the National Living Wage. Younger people are entitled to the National Minimum Wage.
If you get tips at work, they don't count towards the National Minimum Wage or National Living Wage, but you do have to pay tax on them.
Find out more
- The Money Advice Service
- ACAS (Advisory, Conciliation and Arbitration Service)
- Real Living Wage compared to the Minimum Wage and National Living Wage
GOV.UK:
For income tax purposes, it doesn't matter how many jobs you have, you are only entitled to one personal allowance in any tax year. National Insurance works in a different way.
What you need to do when you start a second job
Usually, when you start a job, you give your employer a P45 document. You receive this when you leave a previous job.
If you start another job without giving up your first job, you won’t have a P45. Instead, your new employer will give you a P46. This form tells your new employer you are working somewhere else as well. You don't have to tell them where you are working or how much you are earning.
You could pay a penalty if you don't register with HM Revenue and Customs. You have 3 months from starting your business to register.
How do I pay tax?
You will pay income tax on profit you make in excess of your personal allowance. You will normally be sent a Self Assessment tax return each year. You can also file a Self Assessment return online.
You may have to pay National Insurance contributions. You may also need to register for VAT, although for a student in full-time education, this is very unlikely.
Because personal allowances are for all your income added together, you may find your income goes over the personal allowance if you have your own business and are also employed by someone else.
Find out more
- GOV.UK: Self-employment
- Business start-up advice from the University Careers Service