Income Tax and NI

Each year, the government collects tax from your earnings to pay for the public services it provides.

In the majority of cases, your employer will automatically deduct Personal Income Tax and National Insurance (NI) from your weekly or monthly salary.

Income Tax

When living and working in Scotland, you will pay Income Tax on what you earn at the same rate as a UK national.

There are different rates of Income Tax depending on how much you earn in one year.

When you arrive in the UK you should contact the nearest HM Revenue and Customs office. All EU countries have arrangements so that you are not taxed twice on the same income.

If you are self-employed, you need to register with HM Revenue and Customs.

Visit the HM Revenue and Customs website for more information and an introduction to Income Tax

National Insurance

National Insurance is also deducted from your pay by your employer. NI is a tax to help pay for social security benefits such as free healthcare, sick pay and maternity pay.

After you have arrived in Scotland you need to apply for a National Insurance number. An NI number must be provided to your employer as soon as possible after you start work. It is used as a reference number for your UK tax and National Insurance.

To apply for a National Insurance number, you generally need:  

  • Evidence of employment e.g. employment contract or payslips
  • Passport
  • Letter to confirm your new home address

For more information on obtaining a National Insurance number visit the HMRC website