Do International Students Pay Taxes in the UK? A Complete Guide

The UK is one of the most popular destinations for international students, attracting thousands of young people every year. While studying in the UK, many students take up part-time jobs to support themselves. However, a common question arises: “Do international students pay taxes in the UK?”

If you are an international student working in the UK, understanding tax regulations is crucial. You might be required to pay income tax and National Insurance contributions (NICs), but there are also exemptions, tax codes, and refund options you should be aware of.

In this guide, we’ll break down everything you need to know about students’ taxes in the UK, including tax codes, HMRC tax refunds for international students, and tax-free allowances.

Key Takeaways

✅ International students in the UK may have to pay tax if they earn above the tax-free personal allowance (£12,570 for 2024/25).
✅ Income tax and National Insurance contributions (NICs) apply to students working part-time or full-time.
✅ The tax code for students in the UK determines how much tax is deducted from earnings.
✅ International students may qualify for an HMRC tax refund if they overpay tax.
✅ Students’ taxes in the UK calculator tools can help estimate how much tax you owe.
✅ 18-year-olds do pay tax in the UK if they exceed the tax-free threshold.
✅ If your home country has a double taxation agreement with the UK, you might avoid paying tax twice.

Do International Students Pay Tax in the UK?

Yes, international students do pay tax in the UK if they earn over the tax-free personal allowance. The UK has a progressive tax system, meaning students are taxed based on their income level.

Tax-Free Personal Allowance

As of the 2024/25 tax year, everyone—including students—can earn up to £12,570 per year tax-free. If you earn more than this, you will need to pay income tax on the amount above the threshold.

Here’s how income tax is structured:

Annual Earnings	Tax Rate
Up to £12,570	0% (Tax-Free)
£12,571 – £50,270	20% (Basic Rate)
£50,271 – £125,140	40% (Higher Rate)
Over £125,140	45% (Additional Rate)

If your earnings remain below the tax-free allowance, you won’t have to pay income tax. However, you may still need to pay National Insurance (NI).

National Insurance Contributions (NICs) for Students

In addition to income tax, students working in the UK might have to pay National Insurance contributions (NICs).

Weekly Earnings	National Insurance Rate
Below £242	0%
£242 – £967	10%
Over £967	2%

Even if you only work part-time, if your earnings exceed £242 per week, you must pay National Insurance.

What is the Tax Code for Students in the UK?

A tax code determines how much tax is deducted from your earnings. The standard student tax code in the UK is 1257L, meaning you get the full tax-free personal allowance of £12,570 before taxes apply.

However, if you have multiple jobs or an incorrect tax code, you may pay too much tax. In such cases, you can apply for an HMRC tax refund for international students.

How to Check Your Tax Code

You can find your tax code on:

• Your payslip
• Your P60 or P45 (provided by your employer)
• Your Personal Tax Account on the HMRC website

If your tax code is incorrect, you should contact HMRC to correct it.

Students’ Taxes in the UK Calculator: How Much Will You Pay?

If you’re unsure how much tax you’ll need to pay, you can use a students’ taxes in the UK calculator. These tools help estimate your tax payments based on your earnings.

Popular tax calculators include:

✅ HMRC Tax Calculator (official tool)
✅ Salary Calculator UK
✅ Student Tax Refund Calculator

Do 18-Year-Olds Pay Tax in the UK?

Yes, 18-year-olds do pay tax in the UK if their earnings exceed the tax-free personal allowance (£12,570 per year). Age doesn’t exempt anyone from tax; rather, it’s your earnings that determine whether you owe tax.

However, most full-time students working part-time earn below this threshold and won’t have to pay income tax.

How to Claim an HMRC Tax Refund for International Students

If you overpay tax, you can claim a tax refund from HMRC. This usually happens when:

• You work part-time and don’t earn over the tax-free allowance
• You change jobs, and your new employer assigns the wrong tax code
• You leave the UK permanently before the tax year ends

Steps to Claim a Tax Refund

1️⃣ Check your payslip to see if you’ve overpaid tax.
2️⃣ Log into your HMRC Personal Tax Account to view tax records.
3️⃣ Complete a P50 form (if you’ve stopped working) or a P85 form (if leaving the UK).
4️⃣ Submit your refund request to HMRC and wait for approval.

Tax refunds are usually processed within 8-12 weeks.

What If You’re Self-Employed as a Student?

If you’re a self-employed international student, you must register with HMRC and file a Self-Assessment tax return.

Self-Employed Student Tax Responsibilities

• You must declare all income earned in the UK.
• If you earn over £1,000 per year, you must register as self-employed.
• If your earnings exceed £12,570, you must pay income tax.
• You must submit a Self-Assessment tax return every year by 31st January.

Self-employed students can also claim tax-deductible expenses, such as:

✅ Work-related travel
✅ Laptop and software costs
✅ Office supplies

This helps reduce your taxable income and lower your tax bill.

Double Taxation Agreements: Avoiding Paying Tax Twice

Many countries have double taxation agreements with the UK. If you’re paying tax in your home country, you might be exempt from UK taxes under these agreements.

To benefit, you’ll need to:

• Check if your home country has a tax treaty with the UK
• Fill out a tax exemption form (HMRC form DT-Individual)
• Submit it to HMRC for approval

This prevents you from paying tax twice on the same income.

Final Thoughts: Understanding Students’ Taxes in the UK

If you’re an international student working in the UK, you might need to pay tax depending on your earnings. However, with the right tax code, careful planning, and possible refunds, you can minimize your tax burden.

📌 Key Takeaways 📌

✅ Earnings below £12,570 per year are tax-free
✅ You might still need to pay National Insurance
✅ Check your tax code to avoid overpaying
✅ Use an HMRC tax refund if you overpay
✅ Self-employed students must file a Self-Assessment
✅ Use a students’ taxes in the UK calculator for estimates

By understanding international students’ taxes in the UK, you can manage your finances effectively and avoid unnecessary tax payments.