PAYE (Pay As You Earn) is the UK system for collecting income tax and National Insurance contributions from employees. Your employer deducts tax and NI from your salary before paying you. You do not need to file a tax return if PAYE is your only source of income and your tax code is correct.

Do visa holders pay the same tax as British citizens?

Yes. If you are working legally in the UK, you pay income tax and National Insurance on the same basis as British citizens. Your visa status does not affect your tax rates or allowances.

What is a tax code and why does it matter?

Your tax code tells your employer how much tax to deduct from your pay. The standard code for 2026 is 1257L, meaning you have a personal allowance of £12,570 before tax. If your code is wrong (for example, if you are on an emergency tax code), you may pay too much or too little tax.

Do I need a National Insurance number to work?

You can start work without a National Insurance number, but you should apply for one as soon as possible. Your employer can use a temporary NI number in the meantime. See our NI number guide for how to apply.

PAYE Explained for Visa Holders: UK Tax Guide 2026

If you are working in the UK on a visa, you pay tax through the PAYE system. This guide explains how PAYE works, how to read your payslip, what your tax code means, and how National Insurance contributions work. Understanding these basics helps you ensure you are paying the right amount and keeping your finances in order.

How PAYE Works

When you work for a UK employer, they deduct income tax and National Insurance contributions from your gross pay before transferring your net pay to your bank account. This is the PAYE system. Your employer sends the deducted amounts to HMRC (Her Majesty's Revenue and Customs) on your behalf.

You do not need to do anything extra — the system is automatic. However, it is your responsibility to check that your tax code is correct and that the right amounts are being deducted.

Understanding Your Payslip

Your employer must provide an itemised payslip each time you are paid. A typical payslip shows:

Gross pay. Your total earnings before deductions.
Income tax. The amount deducted for tax.
National Insurance. Your NI contributions.
Student loan deduction. If applicable.
Pension contribution. Under auto-enrolment, your employer must enrol you in a pension scheme (minimum 5% employee contribution, 3% employer).
Net pay. What you actually receive in your bank account.
Tax code. Usually shown at the top of your payslip.

Income Tax Rates

For the 2025/26 tax year:

Personal allowance: £12,570 (no tax on this amount)
Basic rate (20%): £12,571 to £50,270
Higher rate (40%): £50,271 to £125,140
Additional rate (45%): Over £125,140

Scotland has different income tax bands. If you live in Scotland, check the Scottish rates.

National Insurance

National Insurance contributions (NICs) fund the State Pension, NHS, and other benefits. As an employee, you pay Class 1 NICs:

8% on earnings between £12,570 and £50,270 per year
2% on earnings above £50,270

Your employer also pays NI on your behalf (13.8% above the threshold). Employer NI does not come out of your pay.

Your NI contributions build up entitlement to the State Pension. You need at least 10 qualifying years for any State Pension and 35 years for the full amount. Apply for your National Insurance number as soon as you start working.

Tax Codes

Your tax code determines how much personal allowance your employer applies. The standard code is 1257L. If you see a different code on your payslip, check with HMRC:

1257L: Standard code. Personal allowance of £12,570.
BR: All income taxed at basic rate (20%). This often happens with a second job.
0T: No personal allowance applied. This is an emergency code and usually means HMRC needs information from you.
W1 or M1: Emergency code on a weekly or monthly basis. HMRC will correct this once they have your details.

Immigration-Specific Considerations

Your salary shown on PAYE records must match what was stated on your Certificate of Sponsorship (for Skilled Worker visa holders).
HMRC records may be checked by the Home Office when you apply for ILR or citizenship.
If you work multiple jobs, ensure all income is properly declared through PAYE.
Keep all payslips — they are essential evidence for visa extensions and ILR applications.

Next Steps

Check your latest payslip and ensure your tax code is correct. If you think you are on an emergency tax code, contact HMRC on 0300 200 3300. For more information, visit the GOV.UK income tax page and the GOV.UK National Insurance page.