As many full-time students prepare to find temporary work over the Christmas period, they may find that they are in line for tax-free income.
HM Revenue & Customs (HMRC) is reminding them – and, more importantly, their parents - that they may not need to pay income tax on their earnings if these are below their Personal Allowance for the year.
The good news for many full-time students who are intending to work over the festive season is that - providing they expect to earn less than £6,475 in the tax year to 5 April 2010 and complete a form P38(S) at the beginning of employment - they will be entitled to receive their money tax free.
Furthermore, students who have worked part-time throughout the year, and think they may have paid too much tax, could be eligible for a cash refund. They can either use the student tax calculator on the Revenue’s website (http://www.hmrc.gov.uk/calcs/stc.htm), or visit the HMRC tax fact Facebook application, Universilly Challenge.
Three out of every four students take paid work, and if they have worked part-time during term-time, or intend to get a temporary Christmas job, it makes sense to help them to get the facts about tax right so that they don't pay more than absolutely necessary on their hard-earned cash.
"Before starting any vacation job, it's a good idea to make sure you know about tax,” says Jane Frost, Director of HMRC Individuals Customer Directorate.
"Making sure your tax code is right from the start of your paid employment can save you money and is good training for life after graduation. We want to help students understand how the tax system works so they don't pay more than they should and also get back what is due."
Students - and parents - can find all the information they need at:
www.direct.gov.uk/studenttaxadvice.
