You could be owed money from a summer job
Did you have a short-term summer holiday job? You could have ended up paying more tax than you should have, so there are many questions you probably have now, but not to worry you can claim it back and we are here to help you along the way.
Old tax rules vs new tax rules
In previous years, students with summer jobs were able to declare their student status and get paid tax-free. However, now the rules have changed slightly you have to pay the tax and reclaim it.
The new rules state that if you have a job when you’re a student and earn more than £958 in a singular month you will face being taxed just like any other worker would. Although most students will earn less over the year than the tax-free personal allowance of £11,850 for the 2018-19 tax year. Most won’t earn this much from a summer job so, therefore, shouldn’t be paying tax on their income.
The reason you could be taxed on your summer job is that the tax system sees your earnings as that amount every week for a whole year, meaning they base it on a full-time worker and not just someone with a summer job.
Paying tax on an emergency tax code
Students who are put on an emergency tax code could find themselves paying tax on their holiday job. In some cases, this could happen if you haven’t been asked to provide your employer with your ‘new starter’ information, and you could end up paying more tax than you should.
Reclaiming your tax
When working out if you’re owed money back from the tax man, you will need to combine your summer job earnings with any jobs you do during the term time and if it’s less than £11,850 for the tax year, you will be able to claim the tax back. You can claim a refund through HRMC’s website.
When reclaiming your money, this should be processed within a few weeks if you’re eligible.
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