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Money and work

These are the things you need to know if you get a full or part-time job post-16.

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Bank account

Very few employers pay cash so you'll probably need a bank account. Choose carefully and ask your friends and family for help if you need it.

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National Insurance Number (NIN)

Keep this safe. You need it when you start work and if you have to claim benefits later on.

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National Minimum Wage (NMW)

Unless you're an Apprentice aged 19 or under, you should be paid the National Minimum Wage from the age of 16 onwards. It doesn't matter what job you do or the size of the firm you work for. The government reviews the rates every year. Any increases take place in October. Find out the current rates opens new window.

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Payslips

Employers should give you a payslip each time they pay you. It will tell you your gross pay, your take home pay and any deductions made for National Insurance, income tax, pension and other contributions. Keep them safe as you may need to refer to them in the future.

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National Insurance Contributions (NIC)

Most people pay these. They go towards your state pension and help to pay for other benefits like Jobseeker's Allowance (JSA) and Statutory Sick Pay (SSP).

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Income tax

Most people pay income tax through a scheme known as PAYE (Pay As You Earn). The more you earn, the more you pay. When you start work, HM Revenue and Customs will send you a tax code and a PAYE reference number. They also send them to your employer. Keep them safe. Employers use your tax code to calculate how much tax you should pay.

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P60

Your employer will give you this tax form every April. It summarises your pay and tax payments for the year. Keep it safe. You can use it to prove your income, to apply for tax credits and to claim back any tax you've overpaid. If you lose it, your employer can give you a replacement.

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P45

Employers will give you this tax form when you stop working for them. Don't lose it. You can't get a replacement and you need it when you start a new job or apply for Jobseeker's Allowance (JSA). Without your P45, a new employer can't calculate how much tax you should pay and will put you on an emergency tax code. This is usually higher than your actual tax code. You'll get a refund if you pay too much under the emergency code but it will take time to sort out.

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What next?

What else do you need to know?

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Hot tip

Find out more! Browse the money pages opens new window on Directgov and look at the money opens new window and work opens new window pages on Connexions Direct.