National Insurance & Tax
National Insurance & Tax
Temping through Hays
Below is all the information you need to know about tax and national insurance for workers who temp or contract through Hays.
To speak to a member of our team, please contact us on 0203 727 2977.
Do you have a P45 for the current tax year?
- If the answer is yes, your original P45 parts 2 & 3 must be sent to our Shared Service Centre. If you fail to do this, you may be overtaxed. Please remember to retain part 1a for your records, and note that we cannot accept a fax, copy or Part 1a of a P45.
- If the answer is no, you must complete a form P46 and sign the declaration where applicable. Send form P46 to our Shared Service Centre. If you fail to do this, you may be taxed incorrectly.
Please send your tax forms to:
Hays Specialist Recruitment
40-44 Coombe Road
Once received, the information on the P45 or P46 will be applied on our system and the form sent to the Inland Revenue to enable them to calculate the correct tax code and send us a notification of coding (P6).
It can take between 2-10 weeks for the Inland Revenue to notify us, and we cannot use a P2 form issued to the candidate or a P6 issued by a tax office other than our own.
When we receive the P6 we will amend the tax code. The next time a payment is made, any adjustments (rebates or claw-backs) will be generated.
Once your employment with Hays has come to an end and you have received payment for your last timesheet, you will need to request your P45 either via your Hays Connect portal or via your consultant. P45 requests are processed on a twice weekly basis, so your P45 should reach you within 7 working days of your request being received and any outstanding holiday pay will be paid to you.
Are you a student worker?
If you are a student in full time education within the UK or the EU, you can work during student holidays but will still have to pay tax. You will need to provide us with a P46 form.
HM Revenue and Customs have now withdrawn the use of form P38(s).
If you are a student in full time education outside of the UK and EU, you will need to complete a P46 form and pay tax at the standard PAYE rates. You should then contact HM Revenue Customs to reclaim any tax paid upon leaving employment through Hays.
Tax Office Details and Reference
HM Revenue and Customs Chapel Wharf Area
Trinity Bridge House
2 Dearman’s Place
Manchester M3 5BB
Tel: 0300 2003300
If you don't have a National Insurance number you should contact your local office of the Department of Work and Pensions (DWP), which you will find listed in the telephone directory.
If you didn't supply us with your National Insurance number at the time you registered, please provide your consultant with this.
If you are exempt from National Insurance, please ensure that you provide your consultant with evidence that you are of State Pension Age. We will then automatically set up Age Exemption while you are working through Hays.
If any deductions have already been made during the current tax year, we will automatically refund these on receipt of evidence of State Pension Age. Refunds for previous tax years will need to be claimed via HM Revenue and Customs.
If you earn between £111.00 and £153.00 per week, no NI deductions are made but for benefit purposes, you are considered to have made contributions (Lower Earnings Limit). The Earnings Threshold for tax year 2014/2015 is £153.00 per week. If you earn between £153.01 and £805.00 per week, Class 1 contributions are deducted.
The Upper Earnings Limit for tax year 2014/2015 is £805.00 per week. Employee contributions are only deducted at 12% from earnings between £159.01 and £805.00 per week. Any earnings above this are subject to contributions at 2%. Employee contributions are shown on your payslip as NI EE’s if applicable.
Employers contributions are payable at 13.8% on all earnings above £153.00. These contributions are shown on your payslip as NI ER’s if applicable.
Tax Codes The numbers in the tax code are used to work out the amount of tax-free earnings you are entitled to in the tax year. For example 1000L = allowance of £10,000. The letters show how it should be adjusted following any changes in the Budget.
0T = Indicates that we have not received any from of tax documentation, and tax will be deducted at 20%, 40% or 45% depending on the amount of your weekly earnings.
BR = Indicates that tax will be deducted at the Basic Rate (20%) with no tax free allowances.
NT = Indicates that no tax is to be deducted (Students).
DO = Liable at higher rate tax 40% and 45% where applicable. L = Basic Personal Allowance.
The level of earnings at which income tax becomes payable is £192.00 per week.
Rates Basic rate: 20% up to £31,865 (£612 per week)
Higher rate: 40% from over £31,866 to £150,000 (£612 to £2884 per week)
Additional rate: 45% over £150,001 (£2884 per week)
Cumulative:This is how PAYE is normally calculated. An employee's previous pay and tax figures in that tax year are taken into account to calculate the correct deductions. Any deductions or refunds will automatically be made throughout the year so a tax rebate will not be necessary.
Week One Basis: Deductions are calculated as though it is the first week of the tax year, as we do not take into account previous pay or tax details. It is a temporary tax code and is used if we do not receive a P45. This is also known as emergency tax, an example being 1000L WK1. Please note that if a week 1 tax code is applied, you will not be entitled to any refunds unless we receive a P6 from HM Revenue and Customs, or a P45 on a cumulative basis, and no Year To Date figures will be carried over.