Are you unclear about the tax rules for students? Here at the JobShop we can help you find the fact from fiction and help you keep hold of your hard earned cash!
Students don't have to pay tax....... FICTION
Students pay tax along with the rest of the working population, your contribution is depandant on the number of hours you work each week. It is a myth that students are exempt from taxation however you can avoid this by remaining below your personal tax allowance.
If i'm self employed, I can keep all my earnings...... FICTION
There are no special tax rules for you if you are a student and also self-employed. You will be treated in the same way as other self-employed people. You must tell the HMRC if you start working as a self-employed person. Do this by ringing the helpline for the newly self-employed on 08459 15 45 15. You must do this within three months of starting to be self-employed to avoid paying a penalty. Later, we will send you a tax return, on which you will declare your earnings from being self-employed.
I can claim back any overpaid tax..... FACT
At the end of the financial year, which is April, you can reclaim any overpaid tax back from the HMRC; to do this you will need your P60 which is issued by your current or most recent employer. Once you have your P60, contact your local tax office who can advise on how much you potentially you can reclaim; often they can complete this over the phone very quickly and hassle free! You can use the HMRC tax calculator to estimate any overpaid tax.
I only work during the summer, I won't need to pay any tax..... FACT
If you work only out of term time (vacation periods), you will not have to pay any tax as long as you don't earn more than your personal allowance. By filling in a P38(S), the tax office will stop taxing you and reimburse anything already taken
Please click the links below for the HMRC P46 and P38(S) forms