Taxation in the UK
Just a few words of introduction about UK personal taxation for those of you who are paid by (P.A.Y.E.). We are not tax lawyers and for more detail about UK taxation we strongly recommend that you contact a good accountant or have lots of fun reading http://www.hmrc.gov.uk/index.htm and especially http://www.hmrc.gov.uk/international/
The government body dealing with tax in the UK is called HM Revenue and Customs.
National Insurance (NI) entitles you to benefits such as Incapacity Benefits and a Retirement Pension. There are no National Identity numbers in the UK so in order to track your benefits and pension rights the social security office requires you to have a NI number (NINO). Obtaining an NI number can be done in either of two ways.
1. We can assist you by obtaining the necessary forms, communicating with both you and the Department of Works and Pensions and supplying you with various guidance notes to ensure your forms are filled out correctly. We can then apply for the NI number on your behalf.
OR
2. You can personally visit a local office of the Department of Work and Pensions (DWP), produce proof of identity and fill out the relevant application forms.
For more details about NI look at http://www.hmrc.gov.uk/nic/ynino.htm.
NI is deducted in different earning bands. For the latest NI rates please see www.hmrc.gov.uk/rates/nic.htm For most people this usually means a deduction from your salary of approx. 11% each time you are paid.
Income tax
The income tax year in the UK starts on the 6th of April and ends on the 5th of April each year.
The first time you work in the UK Scanloc will send you a P46 and P85 form. These contain important information about the amount of income tax that should be deducted from your salary.
At the end of each employment the hospital will send you a statement of your income so far this tax year: this is called a P45 form. When you start at your next employer you hand the P45 over to them so that they know how much you have earned this year and can deduct tax appropriately.
You start paying income tax when your earnings go above £125 per week or £540 per month.
Income tax is deducted at 20% for incomes up to £37,400 per year and at 40% over that.
Approximately six weeks after the end of the tax year Scanloc will send you a statement of earnings, income tax and NI deductions, called a P60. You should keep this form as a permanent record.
The income tax on each pay slip will be calculated using your income so far this tax year as a basis for predicting your income for the whole tax year. This may mean that some people working only part of the tax year will have too much tax deducted based on their end of tax year income. You can claim this tax back from the Inland Revenue at the end of the tax year.
A Tax Return or Notice to Complete a Tax Return (SA316) may be sent to you by the Inland Revenue at the end of the tax year. If you do not receive a form and wish to make a tax claim please fill in a tax return form at http://www.hmrc.gov.uk/sa/forms/content.htm
You may be asked for Scanloc’s Tax District reference, this is 334/SS440.