If you are entering the UK on a Tier 2 visa then you will also need a National Insurance number to work. A National Insurance number is a requirement for working in the UK and all employers will require it.
In this article, we look at the National Insurance system and how to get a National Insurance number so that you can work and pay tax.
A National Insurance number is a given to each and every working person in the UK. It is a unique identifier that's used in the administration and tax systems of the UK.
If you don't have a National Insurance number printed on the back of your Biometric Residence Permit (BRP). Then an application to JobCentre Plus will need completing.
If you are unsure where you stand on this then please call us and let us take a look at your status. The sooner you get on top of your status the sooner you can work.
The UK has several ways of paying tax, but if you work for an employer the most common system is Pay As You Earn or PAYE. PAYE means that your tax gets collected monthly (or as often as you get paid) from your wages rather than you saving the money and file a tax return every year. It is rare for someone who in employment to fill in a tax return due to the wide use of PAYE.
The current tax bands in the UK are as follows:
The current so-called Basic Rate of tax in the UK is 20%. This basic rate applies to anyone earning less than £32,000 per year. This rate is on earnings over the so-called "Personal allowance". The current personal allowance is £11,500 and is the part of your wages that you are not taxed on. The rates of tax are on anything over this amount, not including it.
There are 2 higher rates of tax in the UK. For anyone earning between £32,001 and £150,000, they will pay 40% and there is a 45% tax rate on earning over £150,001.
The bands and personal allowances change annually and it is worth keeping an eye on future changes that are implemented by the government. Future changes come in "The Budget" so you know well in advance the changes that are coming to the system.