Tax Tips For Temporary Workers

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When traveling to the UK with a working holiday visa, the most popular career choice would be temporary work. Even if your visa allows you to stay and work in the UK for 2 years or more, temping lets you earn money while you look for a more stable job. Think of it as a bridge loan that will tide you over until you can get settled and have an opportunity to look for a more permanent work.

What is great about tempingis that you get to enjoy similar rights as a regular employee, such as minimum wage pay, paid holiday, and Statutory Sick Pay. And, after 12 weeks, your salary will be adjusted similar to that of the basic pay of a permanent staff. The only downside is that you are also obliged to pay

Tax and National Insurance (NI)

  • Regardless of your job, be itoffice workor on the field, you need to pay national insurance and tax, if your income reaches over a certain amount and that you fall under State Pension age Tax and NI are automatically deducted from your pay through the PAYE system.
  • In the event that your employer does not know your tax code, your deduction will be based onemergency tax, which is higher since you will not receive any tax free personal allowance. Make sure to have your code changed right away.
  • If you think you overpaid tax, or you were onemergency tax for a long time, you can claim a tax refund. Just make sure that you get a P45 form from your employer after you stop working, or a P60 form if you’re still employed at the end of a tax year. You need either form to file tax return or claim a rebate.

If you’re paid in cash for yourtemporary work, you might want to look for another employer because you may be deprived of the usual rights. You can also tell HMRC about your cash-in-hand job, if you suspect that your employer is doing it to avoid paying tax and NI.

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