Understanding Net Income
The UK charges tax on income arising in the UK whether or not you are resident in the UK.
Pay As You Earn (PAYE) is the scheme for collecting the income tax due from an individual’s earnings. The tax is deducted by the employer before a salary is paid to the individual. If and how much income tax is deducted depends on the amount earned. More information is available from the Government website.
National Insurance contributions (NICs) and your NI number
National Insurance is a compulsory deduction from your pay that is used to provide for things like the state pension, the NHS and other government benefits. The amount you pay depends on how much you earn. The contributions are collected through the PAYE system and automatically deducted from your earnings.
Every employee in the UK must have a NI Number as it acts like your own personal account number. Your NI Number makes sure that your national insurance and income tax contributions are properly recorded. You need to apply for a NI Number as soon as you arrive in the UK and begin work at the University. Click here for more information.
Pension Deductions
You will automatically be entered into a pension scheme to help you save for retirement. This is in additional to the State Pension. Please refer to your starter letter for information about your pension scheme. For anymore information on pensions please click here.
