Students who have been working this summer should make sure that they are not paying unnecessary tax, says Mark Atherton in The Times. Everyone is allowed to earn up to £7,475 a year (the personal allowance) tax-free. But students may find employers deduct tax that they don’t have to pay.
Students who have tax wrongly deducted can make a claim by filling in form P50, but as a Revenue spokeswoman says, “It is much less hassle if you don’t have the tax deducted in the first place.” So make sure you fill in form P38(S) at www.hmrc.gov.uk/forms/p38s.pdf. Similarly, students who have been working abroad who have been taxed automatically may be eligible for a refund. You’ll “probably be able to claim a deduction or credit in the UK”, says HMRC’s website. For a 10% commission plus handling fee, firms such as Taxback.com will do the work for you. Taxback.com claims that, on average, it obtains $800 refunds for students and exchange visitors on J, F, Q and M visas in America. It also handles refunds for those working in Ireland or Australia.