Students working summer jobs

Source: HM Revenue & Customs | | 05/09/2018

We would like to remind any students that had a summer, job that they may be entitled to claim back any tax overpaid. Students (and other temporary workers) are not required to pay any income tax if their earnings are below the tax-free personal allowance.

When preparing payroll calculations, employers are required to calculate the amount of tax you need to pay on the basis that you would be working for the rest of the tax year. This means that an overpayment of income tax can often happen where students earn more than their monthly allowance of £987 (£11,850 / 12) but over the course of the tax year earn less than their annual allowance. A student only working over the summer and earning more than £987 a month is unlikely to have exceeded the current £11,850 tax free personal allowance threshold.

Students that expect to earn less than £11,850 in the current tax year, (i.e. to 5 April 2019) can complete the P50 form entitled Claim for repayment of tax when they have stopped working. A refund of overpaid tax can be requested using an online version of the P50 form. The P50 form can only be used if you are not going to work for at least the next 4 weeks and are not claiming certain state benefits.

Any students that are continuing to work for the rest of the tax year in part-time jobs, should consider waiting until the end of the year to make a claim.



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