Students could be entitled to a tax refund as they head back to university
Students who have been heading back to university in recent weeks could be entitled to a helpful tax refund, according to HM Revenue & Customs (HMRC).
Those who worked through their summer holidays may have been taxed through PAYE, as if they were earning at that level year-round, but it is unlikely that their earnings will have exceeded the personal tax-free annual allowance of £11,500.
Where this is the case, students will need to sign up for an online personal tax account to apply for a refund using a P50 form.
However, if a student also works during term time, they may have earnings which exceed the £11,500 threshold and so will have to pay tax on any amount above this.
In a blogpost advising students to check whether they might be eligible to receive taxed earnings back, the Revenue also reminded students that holiday income will not count towards student loan repayments, so long as they are still studying.
For more information, contact Baines Jewitt on 01642 632032