Published on November 12th, 20110
Working While You Study : Paying Tax
If you’re a student and you have a job, you’ll have to pay Income Tax and National Insurance if you earn over a certain amount. This still applies if you work abroad during your holidays, and if you’re a foreign student working in the UK.
Do you need to pay tax?
Students working while studying may need to pay Income Tax and National Insurance. This might help you -
- if you need to pay Income Tax and National Insurance
- what happens if you work in the holidays – in the UK or abroad
Tax and National Insurance if you work for an employer
If you work for an employer during term-time, any Income Tax and National Insurance due will be deducted from your wages before you receive them. This is known as Pay As You Earn (PAYE).
Everybody can earn a certain amount before they start paying Income Tax – this is the personal allowance (£7,475 for the tax year 2011-12).
For the tax year 2011-12, you begin making National Insurance contributions when you earn above £139 a week (the earnings threshold). To find out more about Income Tax and National Insurance, follow the links below.
Tax forms when you leave a job
When you leave a PAYE job, your employer will give you a Form P45. You’ll need to keep this safe and give it to your next employer – to make sure you don’t pay too much tax in the future.
Special rules if you only work in the holidays
If you’re a full-time student with a holiday job, you may not need to pay tax through PAYE (you will still pay National Insurance if you earn more than the weekly threshold).
You can ask your employer for a form P38(S) (or download it below) if all the following apply:
- you’re a full-time student in the UK, only working in the holidays
- you’re returning to full-time education after the holiday
- your total income for the year is below the personal allowance
If you have a part-time job during term time, you can’t use form P38(S) just for your holiday job. Your employer will take care of the paperwork to make sure you don’t pay too much tax.
Think you might have paid too much tax?
If you think you’ve overpaid your income tax, use the student tax checker to find out if you could be due a refund.
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