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I am an international student, and I will work in an internship this summer. I will work for 3 months (actually, a bit less: 12 weeks). My salary is 65,000£ gross per annum on a pro rata basis, that is, 5416£ per month.

I am not sure how much taxes I should pay. In total I will receive 15,000£, so does that mean that I should pay taxes as if my salary was 15,000£ a year, as this year in total I will earn 15,000£? In this case I think I would take home £13,367.20. Moreover, I have heard that in UK there are some tax deductions for the first job one gets in the country, but I am not sure if this is true.

  • What internship pays pro-rata of a £65k salary? I'm obviously working in the wrong industry! Even banking only pays about £35-40k for fresh graduates, and interns are normally on less than graduates. – AndyT Jan 13 '17 at 15:49
  • @AndyT It is an Associate internship in the Quantitative Research area of a major bank in London. – user7985 Jan 19 '17 at 22:09
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Yes, in the end you should pay tax as if you got £15,000 in a year. However tax will normally be withheld on the assumption that you'll keep getting the same monthly rate until the end of the tax year (April 5th), and you'll need to claim that back later from HMRC.

This being your first job in the country won't affect the final tax you pay, but it will mean that your employer won't deduct tax as if you've been earning money this tax year before starting work for them, so it'll mean you get less withheld now that you then have to claim back later.

You'll also have to pay National Insurance. That's charged weekly or monthly rather than on an annual basis, so you won't get much/any benefit from the short period of your employment.

  • Thank you. Yes, I imagined that the company would withheld part of the money so that I will have to claim it later, we have the same thing in Spain. Can I claim part of what I pay to National Insurance? – user7985 Jan 10 '17 at 9:10
  • @J.Garcia probably not, as National Insurance is calculated weekly/monthly so the amount that's taken will be correct. You might end up entitled to some UK state pension from them, though. – Ganesh Sittampalam Jan 10 '17 at 9:15

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