HMRC have issued a timely reminder to students who are breaking up for the holidays and out seeking a summer job.
They note that most students are unaware that they do not have to pay tax on their earnings as long as they fall below the personal allowance threshold of £7,475 per tax year.
Stephen Banyard, Director General of Personal Tax at HMRC comments:
“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 send it back to us. That way they can keep all the money they’re earning for student life’s essentials.”
To avoid paying tax on their summer jobs, students should fill out a P38(S) form available from the HMRC website here:
http://www.hmrc.gov.uk/forms/p38s.pdf
All is not lost however if they have already begun working and fall under the threshold. They can claim back tax from their earnings by filling out a P50 form, available from the HMRC website here:
www.hmrc.gov.uk/pdfs/p50.pdf
