Many students have overpaid tax on their summer jobs

With the nights starting to draw in and the weather starting to cool, it means that many students are returning to university after a summer hard at work.

Many of those may have overpaid tax on their summer jobs, due to the way their tax free personal allowance, of £11,850, is spread over the year. Despite the fact that their total earnings for the tax year may be well below this threshold, if their earnings for a single month were more than £987 then an over=payment may have arisen.

HMRC should review and correct these once the tax year has ended in April, however,  there is often quite a delay in this happening.  For those students who do not plan to do any further work in the near future (i.e. over the Christmas period), it would be beneficial to request a tax refund now, to provide a much needed cash boost for the start of term. This can either be done via the individual’s personal tax account, or via HMRC’s website.

Regardless of whether a claim is made now or at the end of the year, it is imperative that students retain all the relevant paperwork from their employers, such as payslips and P45 forms (many of which are now provided online). This is to ensure that the tax position may be reviewed accurately when appropriate.

Should you require any help with either making the repayment claim, or simply reviewing the position, both for yourself or a child at university, then please contact us and we would be happy to assist as appropriate.