1 min Read
22 Sep 2011

Written by Damien

Damien is one of the most widely quoted money and investment experts in the national press and has made numerous radio & TV appearances. He created MoneytotheMasses.com while working in the City when he became disillusioned with the way the public were left to fend for themselves because they could not afford financial advice.

More about Damien

Claim tax back for student work – Money tip #144

tax return If you are a student who has just returned to university following a summer job then make sure you check that you have not unnecessarily paid tax on your earnings.

Everyone under the age of 65 has a personal allowance (£7,475 for the 2011/12 tax year) which is the amount they can earn before having to pay income tax.

Unfortunately employers will often automatically deduct tax from your wages. The problem is that HMRC may provide you with a tax code on the assumption that your earnings will continue over the full tax year, which they obviously won't. Accordingly they spread your personal allowance in the same way which means that you could end up paying tax when you shouldn't.

If you have earned under £7,475 then you can make a claim to HMRC for repayment of any overpaid tax back by using a P50 form.

But in future, when working a summer job, this problem can be avoided by speaking to your employer and completing a P38 form.

Image: Arvind Balaraman / FreeDigitalPhotos.net

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