Students are being reminded that they may not have to pay any tax on the money they make from summer jobs.
Many college and university students take on temporary work over the summer to earn extra cash but HM Revenue & Customs (HMRC) says that they may not know that – provided their total earnings for the tax year are less than the personal allowance of £7,475 – they will not have to pay any tax on the money they make.
To ensure their employers do not deduct tax they do not need to pay, students must fill in a form P38(S), which they can download from the HMRC website at www.hmrc.gov.uk/forms/p38s.pdf.
Students who fail to fill in the form can reclaim any tax paid by sending HMRC a form P50, available at www.hmrc.gov.uk/pdfs/p50.pdf.
Stephen Banyard, director general of personal tax at HMRC said: “We don’t want students to pay tax when they don’t owe any, so we’re encouraging them to fill in a P38(S) and return it to their employer. That way they can keep all the money they’re earning for student life’s essentials.”
LINK: Student tax advice