Income Tax

Whether you work during the term-time or just in the holidays you will normally have tax and National Insurance contributions deducted from your earnings, in the same way as other UK employees.

The tax year

Each tax year begins on 6 April and ends the following April. However, everybody can earn a certain amount of money tax-free in each tax year. This is known as your personal allowance.

Personal allowance

The personal allowance for people born after 5th April 1948 for the 2013/14 tax year (ending 5 April 2014) is £9,440

This means that over the whole tax year you can earn £9,440 tax-free. All income over this amount is taxable.

This doesn't mean that you can earn £9,440 before you start paying tax. The allowance is spread across the year, so you start paying tax when you start earning. If, at the end of the tax year, you have earned less than the Personal Allowance, you can claim a tax refund.

Earning less than your personal allowance

Students are taxed on their wages from employment in the same way as anyone else. Many students pay too much tax under PAYE and later have to claim a refund

Tax refund

If over the tax year you earn less than your personal allowance but have paid tax, you can claim a refund. Use the HM Revenue and Customs tax calculator to see whether you are entitled to a refund.

Before the end of the tax year - you should be able to claim an in-year tax repayment using form P50.

After the end of the tax year - you will need to write to HMRC. Mark the top of your letter clearly with ‘repayment claim’ so that HMRC prioritise it on receipt.

You have four years from the end of the tax year to claim a refund. If a claim is not made within the time limit you will lose out on any refund that may be due.

Paying tax on interest

If you're on a low income and have savings with a bank or building society you could be paying tax on your interest when you don't need to. If this is the case, you can register to have the interest paid tax-free. You can also claim a refund of any tax you've overpaid. To prevent tax being deducted from your interest you can ask your bank for an R85 form. International students will need to complete a R105 form.

For further information about income tax can be obtained by calling HMRC Taxes helpline: 0845 070 3703 or by visiting: