Cheshire students may be exempt from paying tax on holiday jobs

Aug 11 2011 by Simon Halewood, Chester Chronicle

HM REVENUE & Customs (HMRC) is reminding Cheshire’s 14,580 students they may not have to pay tax on money made from summer jobs.

Stephen Banyard, director general of Personal Tax at HMRC, said: “Many undergraduates take summer jobs. But large numbers are unaware that, provided their total earnings for the tax year are less than the personal allowance of £7,475, they will not have to pay any tax on the money they make.

“To ensure their employers don’t deduct tax they don’t owe, students need to fill in a form P38(S), which they can download from the HMRC website at www.hmrc.gov.uk.”

Students who fail to fill in the form will not lose out as they can reclaim any tax paid by sending HMRC a form P50, also available online.

Mr Banyard added: “We don’t want students to pay tax when they don’t owe any, so we’re encouraging them to fill in a P38(S) and send it back to us.”