Money, banking and tax
UK Tax and National Insurance Explained
Beginner guide to National Insurance numbers, PAYE, payslips, P45, P60, Self Assessment, tax codes, council tax, and record keeping.
Plain-English summary
Most employees pay income tax and National Insurance through PAYE. Self-employed people need good records and may need Self Assessment. Keep tax documents because they can matter for visas, benefits, mortgages, and citizenship.
Best for: Workers, self-employed people, students starting work, and new arrivals reading payslips.
What this guide covers
National Insurance number
You may need a National Insurance number to work and pay contributions, though you can start work before it arrives if you can prove right to work.
- Apply only through official routes.
- Keep the number private.
- Give it to employers when needed.
PAYE and payslips
Employees usually see tax, National Insurance, pension, and deductions on payslips.
- Check gross and net pay.
- Check tax code.
- Keep payslips, P45, and P60.
Self Assessment
Self-employed workers and some people with extra income may need to register and file tax returns.
- Keep invoices and receipts.
- Save for tax.
- Check deadlines on GOV.UK.
Checklist
Use this as a practical planning list, then confirm official rules for your status and local area.
- 1Apply for NINO if needed.
- 2Check payslips monthly.
- 3Keep P45/P60.
- 4Register for Self Assessment if required.
- 5Pay council tax or check exemptions.
- 6Save tax records.
Trusted starting points
Use official and established advice sources before relying on social media, forums, or paid services.
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