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Overseas trained supply teachers guide to UK taxation

Are you new to supply teaching in the UK?  To help you understand your pay, here's our overview on the UK tax system. As your employer, we will take care of all relevant payments.

The UK operates a Pay as You Earn (PAYE) system for candidates employed by a UK company.

As a UK umbrella company we collect the relevant deductions from each salary payment we make to you and pay it to Her Majesty's Revenue and Customs (HMRC). HMRC is the equivalent of the ATO in Australia, the IRD in New Zealand, and the CRA in Canada.

The UK tax year runs from the 6th April to the 5th April of the following year. It is not compulsory for you to complete a UK Tax Return, unless you have untaxed income from another source. 

This section will provide you with a basic overview of the typical deductions that are made via the UK PAYE system.

Income Tax

Income Tax is deducted from the gross salary we pay to you.

2021-22 Income Tax deductions:

Income tax band Income tax rate applicable
£0 - £50,270 20%
£50,271 - £150,000 40%
Over £150,000 45%

Personal Tax Allowance

Not all of your salary is subject to income tax as nearly every UK employee will receive a personal tax free allowance. The tax code you are given by HMRC will dictate your personal tax allowance (see section below on how to obtain a personal tax allowance). The standard Personal Tax allowance for 2021/2022 is £12,570 which will show on your payslip as tax code 1257L. 

Your personal tax allowance is divided weekly over the tax year so each salary payment will have a proportion of income not subject to tax. For the tax year 2021/2022 the standard weekly income tax free allowance will be £241 per week. If this is your first job in the UK, this tax free allowance is back dated to 6 April, so you may find you pay little or no income tax on your first few salary payments.

How to obtain a Personal Tax allowance

If this is your first job in the UK, it is very important that you complete a starter declaration form (known as a P46) You will able to complete this form electronically via Orange Genie Education's online registration process. Completing the P46 form will provide you with a temporary tax code, and therefore the appropriate personal tax free allowance.

If you have already worked in the UK this tax year you will need to submit to us the P45 form that your previous employer would have sent to you. This will ensure that you are on the correct tax code and therefore receive the correct tax allowance.

Employee National Insurance

You pay National Insurance contributions (NICs) to build up your entitlement to certain state benefits.

As an employee you pay Class 1 NICs. The rates are:

  • 12% of the amount you earn between £184 and £967
  • 2% of any amount you earn over £967

These Employee NICs are automatically deducted via the PAYE system so you do not have to worry about completing a tax return.

How to obtain a National Insurance number

You will need to phone Job Centre Plus on 0845 6000 643. They will send you an application form for you to complete and return to them. The standard turnaround for you to receive a National Insurance number is seven - ten days.

Our Orange Genie Education registration consultants are available on 01296 468 483 or via email on to answer any questions you may have on the UK PAYE tax system

This information is also available to download via PDF HERE >>

Why Orange Genie Education?

We employ and pay thousands of supply teachers and education support staff every year. Our employment portfolio stretches over 10 years in the umbrella industry making Orange Genie Education one of the most trusted umbrella brands. With this in mind, there’s no wonder we have long lasting relationships with hundreds of recruitment agencies all over the UK. Upon joining Orange Genie Education you become an employee of ours benefiting from:

Single employer for all assignments

  • One payment for all different agency assignments completed in a week
  • Simplified and efficient taxation from single tax code
  • Guaranteed pay for the work completed
  • Continuous employment rights
  • Maternity and Paternity pay
  • Sick pay
  • Access to a workplace pension
  • Statutory rights
  • Improved personal credit references and rating
  • Extraordinary employee benefits including 24/7 access to a GP, councelling, support, fitness resouces, and discounts & offers worth hundreds of pounds in day to day savings

Reassurance our supply teachers are employed by an FCSA member that protects and supports contractors. Our aspiration is to improve the lives and wellbeing of supply teachers and education support staff.

Get started HERE with OrangeGenie Education and get paid on time every time >>

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