Tax and National Insurance Information for Employees
Making the move back into employment – what you need to know
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As an employee you will start to pay tax and National Insurance on your earnings. Your employer will take care of this for you under a scheme called Pay As You Earn (PAYE).
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Financial support from your provider
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If you have received financial support from your provider to help you get back into work you will normally have to pay tax on these payments once your employment starts.
Examples of financial support where tax is payable:
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Help towards the cost if a travel card or fares to work
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Help towards the cost of new clothing needed for your job
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Help towards the cost of other costs related to your new employment
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NOTE: We will not make any payments to you in cash nor will we make any payments towards any personal bills.
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If you are not sure about any payments you have received and how these might affect your tax and National Insurance you can speak to your provider or your employer.
You can also get in touch with HMRC by phone on 0300 200 3300 (the income tax helpline) or visit the GOV.uk website.
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HMRC Advice for Individuals and Employees (HMRC website)
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