Students being stung on emergency 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,

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.’

Further reading:

HMRC’s student tax calculator

Related reading