Finances in the UK can seem complex and daunting for anyone who isn't familiar with them. An important part of your role in settling your assistant into UK life will be helping them understand their finances.

THEIR PAY SLIP
We recommend you explain the different items on your assistant's payslip to them to avoid confusion. Your assistant should be encouraged to keep their payslips and take them back to their home country when they leave as they may have to prove they worked in the UK in the future.

NATIONAL INSURANCE
An amount of (currently) around £45 – a bit more in the London area – is deducted from an assistant’s monthly allowance.  All assistants have the right to a National Insurance (NI) number to enable the contributions they pay to be registered in the system.

Assistants need to apply for their NI number as soon as possible on starting their job.  The school or Local Authority should contact the NI Fast Path team on 0845 641 5047/8/9.  Postal applications for NI numbers will then be sent to the school or Local Authority as appropriate, with guidance on completing the form.  When the assistant has completed the form, he/she must return it to the address given, together with a photocopy of their passport or identity card and (for non-EU nationals) visa.  The assistant will then be allocated an NI number within 3-4 weeks.

Assistants who already have an NI number because they have worked in the UK in the past, should use it again as it is valid for life.

Assistants cannot claim back NI contributions when they leave but, if they are from the EU, they can sometimes have these contributions credited to their own country’s system on their return. They should download the form CA3916 from the HMRC or contact the HMRC Centre for Non-Residents on 0845 915 4811 or from abroad +44 (0)191 203 7010.  Assistants from outside the EU should check with their home authorities on whether NI contributions can be transferred or not.

INCOME TAX
Following the raising of the tax free personal allowance across the UK and due to the fact that the FLA contract is split across two financial years, all FLAs should now be exempt from paying income tax on their standard FLA salary as they will earn below the threshold in each financial year. It is still essential that FLAs are issued with the correct tax code however and in order to minimise delay the assistant should be given tax form P46 immediately on arrival.  On P46 the assistant completes Section 1 and the employer completes Section 2. The assistant should be referred to as ‘foreign language assistant’.

When completed, the P46 must be sent the employer’s tax office (school’s or Local Authority’s as appropriate).

The UK has Double Taxation Agreements (DTAs) with some countries which supersede domestic tax rules.  Assistants from Austria, China, France, Germany, Italy and Spain benefit from a DTA (with a Teaching Article) between their country and the UK.  Assistants from (only) these countries must attach a covering letter and a printout of the relevant Teaching Article to the tax forms they complete. This replaces the old P86 form.  (A hyperlink to the Teaching Article can be found at the bottom of the covering letter on this website.)  Assistants from these countries should eventually be issued with an ‘NT’ (no tax) code.  However, Revenue & Customs judges each case individually and the outcome depends on specific circumstances.

Assistants should keep a photocopy of all the papers they send to the tax office in case of a future query regarding a possible tax refund.

Income tax is one of the major headaches for language assistants, especially if they have to pay it when they shouldn’t. Take a look at our Guide to Understanding Assistants' Income Tax (Word) to help them understand the issues.