If you work in the UK, your agency is legally required to deduct Income Tax and National Insurance (NI) contributions from your wages.
When you start work, you must provide a P45 from your previous employer. If you don’t have one, you’ll need to complete a Starter Checklist (previously P46) so the correct tax code can be used.
To pay NI contributions, you need a UK National Insurance number. If you don’t already have one, apply via www.gov.uk/apply-national-insurance-number.
Your agency will still deduct NI, even if you haven’t registered for an NI number yet – this is done using a temporary/emergency code.
If any agency offers to pay you “cash in hand” without tax or NI, this is illegal. Report it immediately to your local office manager or contact HMRC.
UK Income Tax is also deducted from your wages. If you’re a non-UK resident and:
You may be entitled to a tax rebate.
To apply:
The payroll company shown on your payslip is responsible for issuing your P45 — this may not be the agency you registered with, so always check your payslip for accurate info.