HM Revenue and Customs (HMRC) is reminding students working in temporary hospitality positions that they need not pay tax this summer.
Thousands of students and temp staff take on summer jobs in function venues, bars or restaurants – just to get a bit of cash behind them before the next term.
However the News and Distribution Service reports that large numbers of students are unaware that if their total earnings for the tax year are less than the personal allowance of £7,475, then they will not have to pay any tax on the money they make.
Students are advised to fill in a P38(S) form, which will ensure that their employers don’t deduct tax where it is unnecessary. Students who fail to fill out this form are welcome to reclaim any overpaid tax by sending a P50 form to HMRC.
Stephen Banyard, director general of personal tax at HMRC, reaffirmed the importance of students managing their own finances.
“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,” he said in a Wired-gov.net report.
“That way they can keep all the money they’re earning for student life’s essentials,” he added.