As students start to prepare for the start of the university term, anyone who had a summer job needs to review whether they can claim back any tax paid while working as they well have overpaid through the PAYE system
HMRC is urging students to review their PAYE liability pointing out that a student who took on a job over the summer may have had tax deducted under PAYE on the basis they were in the position for the whole year.
In reality, most will not have earned more than the personal tax-free allowance of £11,500 for a tax year and are entitled to a refund.
The HMRC guidance advises students to claim back the tax which they have paid by accessing their online personal tax account and applying for an income tax refund via an automated P50 form.
Students working part time all year round might earn over £11,500 which would mean they are liable to pay tax.
Any summer work will not count towards student loan repayments as the student is still doing a course.
Report by Pat Sweet
