Need tax help? Gen Zs wish they had learnt basics about tax

HMRC announcement, 25 June 2026.

HMRC is urging summer jobseekers and young workers to download its free app before their first payday, after research found that 40% of Gen Z workers wish they had learnt the basics about tax earlier. With around 3.4 million people aged 18 to 24 in work during summer 2025, a huge number of young people are dealing with tax codes, National Insurance and payslips for the first time, often with little or no preparation.

For anyone starting a first job or a summer job, a few minutes of setup can stop the most common and costly mistakes, particularly overpaying tax on an emergency tax code in those crucial first pay packets.

What HMRC's research found

The findings come from a survey of 5,206 consumers carried out between 27 February and 12 March 2026. Four in ten Gen Z respondents said they wished they had been taught the basics of tax earlier, which will surprise nobody who remembers staring at their first payslip wondering where a chunk of their wages went.

The app itself is already gaining ground with younger users. Some 627,000 people aged 16 to 25 used the HMRC app for the first time in the last financial year, and among app users aged 18 to 24, a third used it to find job-related information, 26% used it to save their National Insurance number, and one in five turned to it when starting or changing jobs. Since 2023, 1.2 million people have saved their National Insurance number to a digital wallet through the app. Satisfaction among young users runs at 90%, and the app is rated 4.8 stars on the App Store and 4.6 on Google Play.

Myrtle Lloyd, HMRC's Chief Customer Officer, said: "Downloading the HMRC app gives young people an advantage in understanding their tax affairs with instant access to information that can help demystify money matters."

Why first jobs trip people up

When you start your first job, your employer often does not yet have the information HMRC needs to give you the right tax code. Until that is sorted, you can be put on an emergency code, which may mean too much tax is deducted from your early payslips. If you only work for part of the tax year, as most students do, you can also end up taxed as though you will earn that wage all year round, even when your total income will sit comfortably under the personal allowance.

On top of that, payslips introduce a lot of new jargon at once: tax codes, National Insurance letters, gross versus net pay, and possibly student loan deductions. None of this is taught in any depth at school, which is exactly why so many young workers feel caught out. If your code looks odd, our tax code checker explains what each code means and whether yours looks right for your situation.

What the HMRC app can do

The free HMRC app gives you instant access to your National Insurance number, your tax code, your employment history and your PAYE details. It offers a pay preview so you can see what is coming before it lands in your bank account, and it lets you save your National Insurance number to your phone's digital wallet so you are never hunting for it when a new employer asks. You can also check student loan balances and view your State Pension forecast.

Crucially, it shows whether you are on the right tax code, which remains the single biggest reason workers overpay or underpay tax. HMRC also points young workers to its Tax Confident website for plain-English explainers and its Check Your Pay tool, which helps you confirm you are being paid at least the National Minimum Wage for your age.

What to do before your first payday

A short checklist covers most of it. Download the HMRC app and sign in. Give your new employer your P45 if you have one, or complete the starter checklist properly if you do not, because that is what determines your initial tax code. Once your first payslip arrives, check the code on it and compare your take-home figure against our take-home pay calculator to make sure the deductions look right. Keep every payslip, and check your hourly rate against the minimum wage for your age band.

If you think you have overpaid

Overpaying is common for students and part-year workers, and the money is recoverable. If you were on an emergency code, HMRC will usually correct it automatically once your details catch up, and any refund due for a past tax year typically arrives through a P800 calculation or can be claimed online. Our tax refund checker helps you work out whether you are likely owed anything, and our guide to UK tax codes walks through what each letter and number means.

Source: GOV.UK - official announcement

Figures and policies can change. Always confirm the latest position on GOV.UK.