HMRC’s Christmas gift for students
HMRC have issued a news release entitled ‘Student Christmas workers could get a tax gift’. Whilst the content of the news release is nothing new it serves as a useful reminder to students (and other temporary workers) that they may not be required to pay any income tax on earnings that are below the tax free personal allowance for the year.
Students that expect to earn less than £6,475 in the current tax year (i.e. to 5 April 2010) and complete a form P38(S) when they commence temporary employment should be able to receive their pay tax free. Students that earn more than £110 per week will be required to pay National Insurance contributions.
Students who already have earnings in the current tax year (within the personal allowances thresholds) which have been taxed could be eligible for a refund. A student tax calculator is available on the HMRC website atwww.hmrc.gov.uk/calcs/stc.htm
HMRC have also launched a tax application on facebook especially aimed at students. The application is called Universilly Challenge. The silly season is upon us!