Being Taxed As a student

Combat squirrel

Combat squirrel

Combat squirrel

Soldato
Joined
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As title, just found out im going to be taxed at my new job iv started, cuz apparently now students only get tax free wages during holidays, is this right ? 1st iv heard, iv never been taxed as a student, why start now, im on a full time university degree course as well as working part time
 
Being a student doesn't mean you are exempt from tax. Only your loan and contributions from parents are tax free.

Most reason students think they don't pay tax is because they rarely earn more than the tax free personal allowance of £5,035. However in some cases you can pay tax despite earning less than the allowance due to the PAYE system. In this case you can claim a rebate from the tax man ;d
 
Students don't get any particular tax free allowance for being a student.

Everyone gets £5,035 tax-free in the current tax year. However this is distributed throughout the year - so if you get paid weekly, you get that amount divided by 52 tax free each week, and any extra amount earnt has tax added. It works similarly if you are paid monthly.

There is no way of getting out of paying income tax. If you are a student and you work only during the holidays, then it is possible (by using an NT tax code and filling in a form for your employer) to get all of your tax free allowance "at once", because you estimate that you won't go over the tax free amount. If you fill this in then work more, you will obviously pay more tax for the rest of the year to make up for it.

If you work during term time then the above concession doesn't apply and you must pay tax as normal. In addition, if you used up part of your tax free amount during the holidays on an NT tax code, you will end up paying more tax than you would normally because the full amount you earn will be taxed rather than just the amount above the tax free amount.

If you pay tax normally for part of the year then stop working then you should receive a tax refund for the tax paid that actually forms part of your yearly tax free allowance.

National Insurance behaves seperately and everyone (including students) must pay this on every payslip with no exceptions or concessions like those mentioned above.

Essentially, there isn't a magic "no tax for students" law, and if you are working during term time you will normally pay pretty much the same as anyone else. As far as I'm aware this isn't a new thing, I don't think there has ever (in recent years, at least) been a lower tax or tax exemption for students.

(I've no idea where "you get 9k tax free" came from, that sounds like nonsense to me)
 
Combat squirrel said:
As title, just found out im going to be taxed at my new job iv started, cuz apparently now students only get tax free wages during holidays, is this right ? 1st iv heard, iv never been taxed as a student, why start now, im on a full time university degree course as well as working part time
Click to expand...

They should tax ya on yer speiling. an gramear
 
Combat squirrel said:
As title, just found out im going to be taxed at my new job iv started, cuz apparently now students only get tax free wages during holidays, is this right ? 1st iv heard, iv never been taxed as a student, why start now, im on a full time university degree course as well as working part time
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you get no more tax free income than anyone else, during holidays or any other time
 
Right iv just got off the phone from the tax office, most people who have answered are mostly right:

-I can get £5035 tax free as does everyone else

-In a full-time course, i DO get zero tax during holidays whilst still enrolled on the course.

So basically my 1st few weeks during my job as an xmas temp ill be taxed only if iv gone over £5035, during the 3 week xmas hol ill not be charged tax, if I continue to work after xmas, it will continue to be tax free until i reach £5035
 
Combat squirrel said:
-In a full-time course, i DO get zero tax during holidays whilst still enrolled on the course.
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I would double (and triple and quadruple) check that, because it's not true. You've either misunderstood what they said, or the person on the phone got it wrong.
 
Combat squirrel said:
-In a full-time course, i DO get zero tax during holidays whilst still enrolled on the course.
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I worked full time over the summer and got taxed the same as everyone else. Being a student doesn't mean you play less tax. As has been said I'd check that again because I think you've been told wrong.
 
Combat squirrel said:
-In a full-time course, i DO get zero tax during holidays whilst still enrolled on the course.
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isn't that only because you will not reach £5035 ?


surely anything earnt during this tim still counts as earnings in relation to your free allowance
 
Sanchez said:
I worked full time over the summer and got taxed the same as everyone else. Being a student doesn't mean you play less tax. As has been said I'd check that again because I think you've been told wrong.
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I think he has too
 
You get the same as everyone else 5030(ish) tax free. If you are unlikely to earn that amount, then you can sign a form and you wont get taxed. However if you are likely go over don't sign the form. Other wise you'll pay for example 0% until you go over then 10% afterwards, rather than like 5% throughout.

Not actual figures hope you understand what I mean.

Combat squirrel said:
So basically my 1st few weeks during my job as an xmas temp ill be taxed only if iv gone over £5035, during the 3 week xmas hol ill not be charged tax, if I continue to work after xmas, it will continue to be tax free until i reach £5035
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deff wrong..

If you think you are going to earn over 5k don't bother filling the tax exempt form in. If you are not or only slightly go over then fill it in.

Basicly when your working you'll be getting paid xxx a week. Now they work the tax out as if you earn that for the rest of the remaining tax year. Then take more or less equal payments out of every pay check. Rather than paying small tax at the beginning of the year, then larger at the end of the year. All the student tax exempt for does, is tell them you are not earning all year and thus are unlikley to exceed the 5030 tax limit.
 
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Unless you have filled in the excemption form (I forget its number) you will get taxed like anyone else. If you do fill in the form, you won't get taxed until you have hit your allowance.

This zero tax during holidays isn't true, they must have meant that you are allowed to be paid up to the threshold without being taxed in the first place rather than pay it and claim it back at a later date.
 
yep , all the form does is save you getting taxed on short term earnings and claiming back later , it is still taxable income
 
she def said I dont get taxed during official holidays from the course, i need to fill in a p38s form for it to happen, this has also been confirmed by my employer (this is a full time course only, which i do)
 
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