Tuesday 7 August 2018, Many students will need to work during their summer holiday to fund their holiday activities and their studies. ICAEW reminds students to keep a close eye on their tax position and how to claim refunds if tax is overpaid.
Caroline Miskin, Tax Faculty Manager explains:
“It is very easy for students to overpay tax. The tax system in the UK can quickly become complicated, particularly if you go on a placement year or work part-time during university. While the majority of part-time employees will earn less than the tax free personal allowance, the tax code applied may mean you pay more than you should. It is important for students to be aware of how much tax they are required to pay, and how to go about claiming a refund should they overpay.”
Caroline adds: “Don’t panic if your employer deducts more income tax than it should, you can still claim back any overpaid tax. When you leave a job, make sure you get a P45 from your employer and pass a copy on to any new employer. Refunds can be claimed on a form P50 when you stop work and don’t plan to work again during the tax year, or by contacting HMRC once the tax year has ended. Claims can be made online through your personal tax account or by phoning HMRC on 0300 200 3300. If all else fails HMRC will calculate the refund automatically after the end of the tax year, but they will send it to the address on their records so you need to make sure that this is kept up to date. ”
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