HM Revenue & Customs (HMRC) is reminding 108,725 students across Greater Manchester that they may not have to pay tax on the money they make from summer jobs. To earn extra cash, we know many of you take summer jobs. But large numbers of students are unaware 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 your employer doesn’t deduct tax you don’t owe, you need to fill in a form P38(S), which you can download from the HMRC website at www.hmrc.gov.uk/forms/p38s.pdf.
Even if you don’t fill in the form don’t worry that you will lose out. You can reclaim any tax paid by sending HMRC a form P50, available online 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.”
You can find more student advice on tax matters at: http://studenttaxadvice.direct.gov.uk/index.html
A handy student tax calculator is also available at: http://stccalculator.hmrc.gov.uk/UserDetails.aspx
If you fancy following HMRC on Twitter you can find them at: @HMRCgovuk