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Do You Pay Tax And National Insurance On An Apprenticeship

Nobody enjoys thinking about taxes. But, unfortunately, it’s a necessary nuisance, something we all have to do whether we like it or not.

Nonetheless, even though it is not everyone’s favourite subject to talk about, it is essential to understand how taxes affect you. Apprentices, like all other employees, must pay taxes on their earnings. Therefore, if you are starting an apprenticeship, you should get familiar with the tax system to avoid paying the wrong amount.

Do you pay tax and national insurance on an apprenticeship?

Yes. Apprentices are often believed to be free from paying income tax. This is not correct. Apprentices are classified as employees and are taxed accordingly. This implies that you’ll have to pay income tax and National Insurance Contributions (NICs) just like everyone else.

The Pay As You Earn (PAYE) method is often used to tax you. Under PAYE, tax is taken ‘at source,’ which means it is deducted straight from your pay packet. As a consequence, you should not need to file a Self Assessment tax return.

You will be given a tax code. This series of letters and numbers inform HMRC and your employer about how much money should be deducted from your paycheck. Your tax code must be correct.

Updated on December 23, 2021

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