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Employment

Updated on 3 April 2023

This section provides further details for employees on a low income about the tax and National Insurance implications of employment as well as providing guidance on the national minimum wage (NMW) and pensions auto-enrolment.

Illustration of a group of workers

Most people who work in the UK are employed. If you are an employee, your employer will usually deduct tax from your pay and send it to HM Revenue and Customs (HMRC) on your behalf.

You may have to deal with HMRC yourself though, if you do not understand something or if you disagree with something – HMRC and employers do not always get things right.

So it is important that you are able to check the tax you are paying on your employment income is correct. You should be able to see information in relation to your pay and taxes in your online Personal Tax Account, which you can read about in our tax basics section.

What information and help can I find in this section?

In this section, we provide information and help to encourage you to check your employment taxes and to try and solve any tax problem you may find. 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:

Throughout this site we can only offer general guidance on tax topics and you should always obtain specific advice before taking any action. You can find out where to get help with your taxes from third party organisations, including the tax charities, in our Getting help section.

For information on the scope of the help that you can expect to find in this section, please see the About Us section.

Where can I get more help?

There is a general collection of information on GOV.UK for those in employment, including on pay, tax and the National Minimum Wage.

If you are self-employed, we suggest you also visit our self-employment section.

If you have come from abroad to work in the UK, we suggest you also visit our migrants section.

If you live in Scotland and are a Scottish taxpayer, you should read our section on Scottish income tax.

If you live in Wales and are a Welsh taxpayer, you should read our section on Welsh income tax.

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).

If you think you might be entitled to state benefits, we provide an overview of the main benefits.

Tax credits and some other state benefits are slowly being replaced by universal credit.

HMRC manage the UK tax system. You can find their contact details on GOV.UK.

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.

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.

Tax guides

Introduction to the tax system 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? What if I cannot pay my tax bill? Do I need to complete a tax return? Self Assessment: understanding the basics What is Simple Assessment? How do I claim tax back? How do I claim back tax I have overpaid through PAYE on wages or pensions? How do I claim back tax if I complete a tax return? How do I claim back tax if I am taxed under the Construction Industry Scheme (CIS)? How do I claim back tax on savings income? How do I claim a marriage allowance refund? How do I claim back tax on a payment protection insurance (PPI) pay-out? Should I use a tax refund company? What is National Insurance? How do I get a National Insurance number? What are Specified Adult Childcare credits? What is Scottish income tax? What is devolution? Do I have to pay Scottish income tax? How does Scottish income tax work? What is Welsh income tax? Do I have to pay Welsh income tax? Do I have to join a pension scheme? Tax relief on your pension contributions HMRC digital services Enquiries, penalties, appeals, complaints and debt Enquiries How to survive an enquiry by HMRC Tax penalties Tax appeals Alternative Dispute Resolution How do I complain to HMRC? What if I cannot pay my tax bill? What if I have a tax credits overpayment?
Am I employed, self-employed, both or neither? Working through a limited company What is the national minimum wage? 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 is tax collected on taxable state benefits? 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 What are benefits-in-kind? What payments and benefits are non taxable? What if I incur expenses in relation to my job? What travel expenses can I claim? What if I use my own car for business purposes? Payroll giving Allowances and expenses paid to armed forces personnel and deductions from their income Pensions and employees What is automatic enrolment for 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? What if I am in the armed forces and work overseas? First time workers Apprenticeships

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