Opening your first payslip after working a few evening shifts in Brighton is usually a proud moment, right up until you look at the deductions column. Whether you poured pints at a pub on West Street, folded jumpers in Churchill Square, or made flat whites in the North Laine, seeing unexpected lines labelled "PAYE" or "NI" can be jarring.
The good news: most students working part-time in the UK should pay £0 in income tax. When tax does disappear from your wage packet, it is almost always due to an administrative mix-up that you can fix in a few minutes.
Here is a straightforward guide to how UK student tax, National Insurance, tax codes, and payslip deductions work, plus how to get any overpaid money back.
The £12,570 Personal Allowance: Why Most Students Pay £0 Tax
The UK operates an annual tax-free allowance known as the Personal Allowance. For the 2026 tax year (running from 6 April to 5 April the following year), every UK worker can earn up to £12,570 across the year before paying a single penny of income tax.
To put that into perspective for term-time work:
- £12,570 per year equals £1,047.50 per month.
- Broken down weekly, that is £241.73 per week.
If you are 18 to 20 years old earning the statutory minimum wage of £10.85 per hour, working 12 hours a week brings in £130.20 gross. If you are 21 or older earning the National Living Wage of £12.71 per hour, working 15 hours brings in £190.65 gross. Both amounts sit comfortably below the £241.73 weekly threshold.
Because income tax is assessed on annual earnings, you will not owe any income tax unless your total earnings across all employers exceed £12,570 in the tax year. For full statutory tax rates and bands, check the official GOV.UK income tax guidance.
The Starter Checklist: The Form That Protects Your Pay
When you start a new job, your employer's payroll team needs to know which tax code to assign you. If you had a previous job in the same tax year, you would hand over a P45 form from your old employer.
As a fresher starting your first job since arriving in Brighton, you probably do not have a P45. Instead, your employer must give you a Starter Checklist (formerly known as the P46 form).
The checklist asks you to choose one of three statements:
- Statement A: "This is my first job since 6 April and I've not been receiving taxable Jobseeker's Allowance, Employment and Support Allowance, taxable Incapacity Benefit, State Pension or support."
- Statement B: "This is now my only job, but since 6 April I've had another job, or received taxable Jobseeker's Allowance..."
- Statement C: "As well as my new job, I have another job or receive a State, works or other pension."
If this is your only job and you have not worked elsewhere in the UK since 6 April, ticking Statement A instructs payroll to apply the standard cumulative tax code. If you skip this form or hand it in late, payroll will place you on an emergency tax code by default.
Decoding Your Tax Code: 1257L vs Emergency Codes
Your tax code tells your employer how much tax-free pay to allocate to you in each pay run. You can find it printed clearly on your payslip, usually near the top beside your NI number.
1. The Standard Code: 1257L
This is the normal tax code for someone entitled to the standard £12,570 Personal Allowance. The digits show the allowance divided by 10, and the "L" confirms you are entitled to the basic personal allowance. Under a standard cumulative 1257L code, any unused allowance rolls forward from month to month.
2. Emergency Codes: 1257L W1 or 1257L M1
If you see "W1" (Week 1) or "M1" (Month 1), or an "X" after 1257L, you are on a non-cumulative emergency tax code. Payroll treats each pay packet in complete isolation, giving you only one week's or one month's slice of the allowance without checking what you earned earlier in the year. If you pick up extra shifts during Freshers Week or a bank holiday, this code can mistakenly trigger tax deductions.
3. The BR Code (Basic Rate 20%)
A "BR" code means Basic Rate. It instructs payroll to deduct a flat 20% from every single pound you earn, with zero tax-free allowance applied. This happens if HMRC believes this is a second concurrent job, or if your employer received no starter information at all. If you are juggling casual shifts across multiple venues, read our guide to zero-hour contracts in Brighton & Hove to see how multiple contracts affect your tax status.
How to Get Your Tax Refund
If your payslip shows tax deductions under an emergency code or BR code, do not panic. The money is not lost. You have two ways to get it back:
- Automatic Payroll Refund (Fastest): As soon as your employer processes your completed Starter Checklist, HMRC sends an updated digital coding notice to their payroll software. In your very next pay run, payroll recalculates your tax on a cumulative basis. The overpaid tax is added directly back onto your net pay as a refund credit.
- HMRC Personal Tax Account: Download the free HMRC app or sign in online using Government Gateway. You can check your employment records, tell HMRC that this is your primary or sole job, and view your estimated tax. HMRC will update your tax code within days.
If you leave a job before receiving the refund on your payslip, HMRC automatically reviews your tax account at the end of the tax year (after 5 April) and issues a P800 tax calculation with a direct bank transfer or cheque.
National Insurance (NI): The Deduction That Works Differently
National Insurance contributions (Class 1) fund state benefits, the NHS, and statutory sick pay. Unlike income tax, National Insurance is calculated per pay period, not over the course of the entire year.
Key National Insurance rules for 2026:
- Primary Threshold: £242 per week (or £1,048 per month).
- Rate: 8% on earnings between £242 and £967 per week.
If your weekly earnings stay below £242, you pay £0 in National Insurance.
However, because NI is non-cumulative, working a 30-hour week during reading week or the Christmas holiday at £11 per hour (£330 total) means you will pay 8% on the £88 that exceeds the £242 threshold (about £7.04). You cannot reclaim that £7.04 at the end of the year, even if your annual income stays well under £12,570.
If you are an international student working on a visa, make sure your total working hours stay within legal limits during term time. Review the Student Visa work rules in Brighton to ensure complete visa compliance.
Other Common Payslip Deductions
Aside from PAYE tax and National Insurance, you might spot a few other lines on your payslip:
- Student Loan Deductions: You will not pay student loan repayments on a part-time student wage. Repayments only begin in the April after you graduate, and only when your annual income exceeds the statutory threshold (such as £27,295 for Plan 2 or £25,000 for Plan 5).
- Workplace Pension: Employers must auto-enrol workers into a pension scheme if they earn over £192 per week and are aged 22 or older. If you are 18 to 21, you will not be auto-enrolled, though you can ask to join. If enrolled, you have the statutory right to opt out within 30 days and receive a full refund of contributions.
- Holiday Pay: Casual and irregular-hours workers accrue statutory paid holiday at a rate of 12.07% of hours worked. Some Brighton employers pay this rolled up with each payslip, while others bank your accrued holiday hours for when you take time off.
Your First Week Checklist
Before your first shift in Brighton:
1. Provide your National Insurance number to your manager.
2. Complete and return the HMRC Starter Checklist (Statement A for first jobs).
3. Check your first payslip to confirm the tax code displays 1257L.
4. Download the HMRC app to monitor your earnings and tax status.
Ready to find flexible part-time work around your lecture schedule? Explore verified local vacancies on our Brighton part-time job board to apply directly to student-friendly employers across the city.
Frequently Asked Questions
Do full-time students get an automatic tax exemption in the UK?
No. There is no special student exemption from UK income tax. Students are subject to the same standard personal tax rules as everyone else. The reason most students do not pay tax is simply that their part-time earnings fall below the annual £12,570 Personal Allowance.
What should I do if my first payslip has deducted tax under a BR code?
Speak to your employer's payroll or HR contact immediately and ask if they received your Starter Checklist. You can also sign in to your HMRC Personal Tax Account online and update your employment status so HMRC can notify your employer to apply the correct 1257L tax code.
How long does it take for HMRC to refund overpaid emergency tax?
If your employer corrects your tax code while you are still working for them, the refund usually appears in your next scheduled payslip (within 2 to 4 weeks). If you have already finished the job, you can claim the refund directly through your HMRC online account once your final pay figures are logged.