Student Tax Advice: Part 2

Student Tax Advice: Part 2

[Continued from Student Tax Advice: Part 2]

  • What is form P38(S)?

Students who plan to work only during the holiday periods, and expect to earn
no more than the Personal Allowance (currently £6,475) in the tax year can ask
their employer for a , which they should complete and return to the employer at the start
of their job – this will entitle them to receive their money tax free.

  • What is form P45?

is given out at the end of a job and shows the pay
received and tax deducted between the start of the tax year (6 April) and the
date the employment ceased (if before 5 April the following year).  You should
keep your P45 in a safe place for future reference.

  • What is form P60?

summarises the yearly earnings and tax paid for a
particular job.  Students with more than one job at the 5 April each year will
receive a P60 from each employer.  As above, keep your P60 form in a safe place
for future reference.

  • What does my tax code mean?

Your tax code shows how much you are allowed to earn before paying any
tax.  This helps employers to work out how much tax to deduct from your

  • What if I have more than one job?

Like everyone else, students have only one Personal Allowance for each tax
year and if they start a new job without finishing their first job, their second
employer will ask them to fill out and sign a
The employer uses the information on the P46 to notify HM Revenue & Customs
(HMRC) that a new employee has started and to ensure the correct code is
operated on earnings from the second job.

  • What are National Insurance contributions (NICs)?

NICs pay for social security benefits that you may receive later in your life
and help pay for the National Health Service.  National Insurance contributions
are recorded against a person’s name using a National Insurance Number.  NICs
are deducted at source from pay by employers and cannot be claimed back.  They
are only paid once your income exceeds £110 a week.  You’ll need to keep a
record of your National Insurance Number for any dealings with their tax office
and their employer(s).  

  • Who do I need to tell when I change address?

HMRC needs to be kept informed of your address.  This is each individual’s
responsibility.  Don’t assume your college or university will do it.  Keeping
HMRC informed of your address ensures you won’t miss any important letters or
forms – or rebates!

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