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Summer Work - Students May Not Pay Tax
HM Revenue & Customs (HMRC) is reminding students living and working in the south west this summer that they may not have to pay tax on the money they make from summer jobs.
To earn extra cash, many undergraduates take summer jobs.
But large numbers are unaware that, provided their total earnings for the tax year are less than the personal allowance of £7,475, they will not have to pay any tax on the money they make.
To ensure their employers don’t deduct tax they don't owe, students need to fill in a form P38(S), which they can download from the HMRC website at www.hmrc.gov.uk/forms/p38s.pdf .
Students who fail to fill in the form will not lose out however, as they can reclaim any tax paid by sending HMRC a form P50, available online at www.hmrc.gov.uk/pdfs/p50.pdf .
Stephen Banyard, Director General of Personal Tax at HMRC said: "Many students will choose to work in Devon during the summer holidays.
"We don't want those students to pay tax when they don’t owe any, so we're encouraging them to fill in a P38(S) and send it back to us.
"That way they can keep all the money they're earning for student life’s essentials.”
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