Student Tax Advice: Part 1

Student Tax Advice: Part 1

As many full-time students prepare to find temporary work over the holiday
period, they may find that they are in line for tax free income.

HM Revenue & Customs (HMRC) is reminding them that they may not need to
pay income tax on their earnings, if these are below their Personal Allowance
for the year.

The good news for many full-time students who are intending to work over the
festive season is that – providing they expect to earn less than £6,475 in the
tax year to 5 April 2010 and complete a at the beginning of employment – they will be entitled to receive
their money tax free.

Students can find all the information they need in the .

Furthermore, students who have worked part-time throughout the year, and
think they may have paid too much tax, could be eligible for a cash refund. 
They can either use the .

Three out of every four students take paid work, and if they have worked
part-time during term-time, or intend to get a temporary Christmas job, HMRC
wants to help them to get the facts about tax right so that they don’t pay more
than absolutely necessary on their hard-earned cash.

Jane Frost, Director of HMRC Individuals Customer Directorate, said:

“Before starting any vacation job, it’s a good idea to make sure you know
about tax.

“Making sure your tax code is right from the start of your paid employment
can save you money and is good training for life after graduation.  We want to
help students understand how the tax system works so they don’t pay more than
they should and also get back what is due.”

To learn more about student tax matters, read Student Tax Advice:
Part 2
coming soon!