Students warned over PAYE shake-up
Students are warned to check their tax following the introduction of Real Time Information (RTI).
Due to the erratic nature of their work during vacations and/or term time, the frequency of their jobs, number of jobs, or agency work, the tax regime often struggles to keep up.
This means that students often pay too much tax and have to claim a refund even if they are vigilant.
Furthermore, the introduction of RTI from 6 April 2013 has meant the withdrawal of form P38(S), which enabled students to get their earnings paid without income tax deductions at source.
The withdrawal of the form means that students now fall under the standard PAYE regime and increases the likelihood of their having to claim back tax at the end of the year.
The withdrawal of P38(S) due to the introduction of RTI means that students should take an interest in their tax affairs at an earlier stage.
Students should check their payslips and PAYE coding notices in-year to ensure that the right tax is being taken from them, and contact HMRC or a taxation expert if they think something is wrong.
They should also collate details of their income and tax paid in the last tax year up to 5 April 2013 as they might be due a repayment.
Many students may have earned under the annual income tax threshold limit of £8,105 for last year, but still had tax deducted under PAYE.
For further information, please contact Lorraine Wilkinson at the office.
Author: Lorraine Wilkinson
Lorraine joined Scott & Wilkinson in 2001 bringing with her over 20 years payroll experience. As payroll manager, she oversees the smooth running of the firms payroll bureau which includes all aspects of day to day payroll. Lorraine is...
Add your Comment
We have the ability to edit and/or delete posts and comments. Links should be relevant to the topics. Please note all comments are subject to review before inclusion.