OVERSEAS TEACHERS: TAX ALLOWANCES EXPLAINED
We have specialised in the education sector for a number of years which means August is a particularly busy time here at JSA as we support recruiters in getting overseas teachers in place for the new school year.
We hosted a series of seminars at our Watford HQ for recruitment agencies to run through all the things we do to ensure contract teachers are set up and ready to work. One aspect which we always highlight – and did so again this year – relates to the tax-free allowance.
Tax-free allowance and overseas teachers
Overseas teachers who are beginning work in September may not realise that they are entitled to the tax-free allowance (currently £12,500).
Because most contract teachers are paid on a weekly basis, the tax allowance is broken down into weekly allowances. This means it’s possible to earn £240 a week tax-free.
Teachers who started their contracts in September are starting part way through the tax year (which runs from 6th April 2019 to 5th April 2020), so in most circumstances if they have not worked in the UK before they won’t have to pay tax for around three months. (The actual calculation will depend on each person’s earnings, of course.)
While we will continue to collect relevant deductions from teachers’ salaries, such as National Insurance Contributions, the tax-free allowance situation is welcome news to new starters, no doubt.
Another point of confusion for overseas teachers surrounds whether there is a need to submit an annual tax return. The fact is, no tax return is required in the UK if JSA is the individual’s only employer and only source of income. We usually send a ‘Statement of Earnings’ upon request showing all of your earnings and tax paid, so that your tax status is clear and you have complete peace of mind.
Umbrella support for teachers
We provide a range of accountancy support services to teachers working through our Umbrella company. Our team of specialist contractor accountants can provide advice on:
- Pay-related queries.
- Holiday pay.
- Applying for a National Insurance number.
- Setting up a UK bank account.
- Insurance cover whilst on assignment in schools.
- Assistance with tax refund applications when leaving the UK.
If you are a recruiter in the education sector, or a contract teacher looking for a specialist Umbrella company, please get in touch with a member of our team who will be pleased to help.