Taxation
The national social system in the UK requires all its inhabitants to pay at least 20% in income taxes. Your employer deducts this income tax from your salary and pays it directly to the Tax Office.
You have 2 levels of taxes.(Tax year 2008-2009)
- 20% up to £36,000 annual gross income
- 40% over £36,000
The main personal allowance is £5,435
(Example: if you earn £50,000 you will pay: 20% * (36,000) + 40% * (50,000 - 36,000 - 5,435)= £10,626 ).
How do I get my National Insurance number?
To apply for an NI number you will need to make an appointment at your local Jobcentre when you arrive in the UK. At the interview you will need to provide proof of your identity and account for all your past years, work and travel, and how and when you arrived in the UK. It can be a lengthy process so be prepared.
To book an appointment for an NI number interview you should phone JobCentre Plus 0845 600 0643 (8am – 6pm Monday to Friday). Often this phone line is very busy so you should call when you have time to sit on hold for a while! They will book you an appointment at your nearest Jobcentre office (so it might be a good idea to have a London A-Z handy when you call so you can get your geographical bearings!).
For more specific information on National Insurance please visit
http://www.dwp.gov.uk/
If you intend to work in the UK, you need to apply for an NI number as soon as possible. You will need to quote your NI number to your employer's accounts department for taxation purposes. In order to apply for the number you will need documentation to do with employment (such as a contract or letter from your employer), so it is easier to apply once you have secured employment. If you have not yet secured employment, you can still apply, however certain documents will be required (such as job rejection letters, letters from your recruitment agent etc).