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The average weekly pay in the UK in 2010 was £499. Among the highest paid were health professionals at £1,067, followed by corporate managers at £757, and science and technology professionals at £704. Among the lowest paid were those in sales occupations at £287 per week.

Based on weekly earnings of £287 per week, average deductions would be:

Income Tax: £28.65

National Insurance: £17.76

You will receive: £240.59 (net)

Rent (room) £85

Council Tax: £15

Travel: £15

Food/entertainment £60

If you are living and working in the UK, you will pay tax at the same rate as a UK National. Taxes are normally payable on all income earned in the UK. The tax year runs from 6 April to 5 April.

You can earn an amount of income in a tax year without paying income tax; this is called a tax allowance. If your income does not exceed your tax allowance, then you will not pay income tax. There are different tax allowances but on average this is £7,475 per year. You may be taxed before you reach this level of earnings, if so, you can make a claim to HM Revenue and Customs at the end of your stay in the UK and it will be refunded. Income tax is deducted directly from your salary, through the Pay As You Earn (PAYE) scheme, at the following rates:

Basic rate: 20% for earnings between £0 -£35,000

Higher rate: 40% for earnings between over £35,001 - £150,000

National Insurance payments are the equivalent of social security contributions. There are different categories of contributions - employed people pay class 1 contributions. If you earn less than £139 per week you will not make any contributions, but any income above £139 and below £817 per week will be charged at 12%. Earnings above £817 per week are liable for an extra 2%. Only self-employed people must pay their own National Insurance.

This is local taxation to pay for the public services in your area such as waste collections and the police. It is assessed on the value of your property and on the people who live there. Reductions are available if you live alone or are a student. When looking at rent prices for private accommodation, this charge is generally not included. Contact your local authority for more information.

Generally VAT is already included in the cost of goods you buy (normally 20%) It is not payable on certain goods and services such as rent, most food items and children’s’ clothing.

Inheritance Tax is payable on estates with a value of £325,000 or more. The rate is 40% on the value over and above £325,000.

Stamp Duty is a Land Tax payable whenever you buy a property. You do not have to pay stamp duty on properties purchased for £125,000 or under. The following rates apply:

0% - £125,000 or less

1% - £125,001 - £250,000

3% - £250,001 - £500,000

4% - £500,001 or more

VED is usually referred to as ‘Road Tax’ and is the amount you pay to use your vehicle on public roads. Vehicles registered after March 2001 are banded into 13 groups. From April 2010 a new car has a different rate of Vehicle Tax for the first tax disc. From the second tax disc onwards they will then pay the standard rate. Standard rate road tax for the majority of cars costs £0 - £435 per year depending on the type of fuel used and the vehicles emissions of CO₂