Students with part-time jobs
If you are a student, you may end up paying tax in respect of a part-time or holiday job when you are not obliged to. There is a system that is designed to make student life easier, although not all employers are aware of it. The P38(s) procedure enables students to be paid without tax being deducted for jobs in the holiday periods (but not for evening or weekend jobs).
If tax has been deducted from earnings from a holiday job that has now ceased, your former employer should have given you a form P45. If you are not intending on working again during the tax year (i.e. to 5 April) you can send your P45 to your former employer's tax office, asking for the repayment to be made.
If you have had a few part-time/holiday jobs with tax deducted during the tax year, you should send all your P45 forms to your last employers tax office asking for the repayment of tax to be made. If you are also taxed on a bank or building society account interest, you may be able to claim back some or all of this money. You should include the details when sending your P45.
Points to be aware of:
- Currently, up to £5,225 per year can be earned without the deduction of tax.
- You should ask for all holiday earnings to be paid to you without tax being deducted (the P38(s) procedure).
- If you are receiving interest on a bank or building society account you should register with the bank or building society to have the interest paid gross (i.e. without the deduction of tax).
- Most scholarships and awards are tax-free.
- If you are a single parent there may be other tax allowances available to you.
- You will not be taxed on any gifts of cash received from your parents.
More information
There are various state benefits that you may be entitled to, although some are taxable.
More useful information can be found at the NUS Web site.
HM Revenue & Customs provide a leaflet for students. Although it is useful as a guide, some information may be out of date. Refer also to the leaflet Collection of student loans.
This page was last reviewed on 16 April 2007. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
