Flint Bishop

Summer work pays off

Shropshire students who take a summer job to help pay for their education are being urged to ensure their paperwork is in order, to avoid racking up an unnecessary tax bill.

Students earning less than £7,475 in a financial year are not eligible to pay any tax. 

But Chris Dorricott, from the payroll team at Shrewsbury accountancy firm Dyke Yaxley, said failure to fill in the correct paperwork when taking on a summer job could risk unwarranted tax deductions.

"Many students take on seasonal work in order to pay for their education these days, and many employers benefit from the extra pool of temporary recruits," he said.

"However, HM Revenue & Customs has said that employers and students should be aware of the form filling which will avoid any unwarranted tax deductions."

To ensure employers do not deduct any tax which is not owed, Mr Dorricott urged students to fill in the form known as P38(S), which can be downloaded from the official HMRC website, www.hmrc.gov.uk.

"Students who fail to fill in a form won't lose out, as they can reclaim any tax paid. But by completing the correct form in the first instance, student workers can avoid any wait in getting their money."

The Dyke Yaxley message was echoed by Stephen Banyard, director general of personal tax at HM Revenue & Customs.

He said: "We don't want Shropshire 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.

"That way, they can keep all the money they're earning for their student life essentials."

For more information about Dyke Yaxley, please visit their website here: www.dykeyaxley.co.uk

 

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Article published by Midlands Business News on 24 August, 2011

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