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HR Payroll Service : Students


If you're a student and you have a job, you'll have to pay Income Tax and National Insurance if you earn over a certain amount.

Tax and National Insurance

Students pay the same level of tax as all employees. That is any amount over an individual’s personal allowance become chargeable to tax.

Students also pay the same level of National Insurance as all employees. There are no personal allowances for NI instead there is a threshold and you will only start paying NI contributions when you earn over this threshold in a calendar month.

The monthly threshold for the tax year 2015/2016 is £676.00 therefore if your earnings are below this amount then you will not pay National Insurance.

Click here for further details of Tax and National Insurance

A student Tax Checker is available on the HMRC website, please use the following link:


Student Loans

Student loans are paid from your salary when your earnings reach £1444.58 in a month at the rate of 9% for all earnings over this amount.
There are three ways that payroll are notified of student loan deductions being due, these are:-

  1. By ticking the relevant box when complete a P46 or Starter Declaration form.
  2. When we receive a P45 form there will be a Y in the relevant box.
  3. We get notified by the HMRC that deductions are due.

When you have repaid you loan in full the Student Loans Company will notify the HMRC who will in turn notify us that payments are to cease.

For further details please use following link to visit the following page on the DirectGov website.   Student Loans Page