Students being stung on emergency tax
Those in further education are paying too much tax because they are not filling in forms exemptin them from income tax
Thousands of students with summer jobs may be working in the emergency tax
band because they have not filled in the correct forms.
Full-time students do not have to pay income tax as long as they only work
during their holidays and earn less than £6,475 per year.
But they must fill in form P38(s), a document available from their employer
or the HM Revenue & Customs website, to secure the tax break,
thisismoney.co.uk
reported.
Those who do not fill in the form usually end up being put on emergency tax
code (647L for 2010-11), leading to additional amounts of their income going to
the taxman.
Kelly Sizer, of the Low Income Tax Reform Group, says: ‘Students who work in
either holidays or term-time will probably pay too much tax. If this applies to
you, make sure you claim a repayment.’
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