Employers urged to make sure students don't overpay tax on summer jobs

HM Revenue and Customs (HMRC) has reminded both employers and students about the paperwork needed to ensure that there is no unnecessary payment of tax for summer jobs.

Many students take on seasonal work in order to help pay for their education, and many employers benefit from the extra pool of temporary recruits.

However, HMRC has said that employers and students should be aware of the form-filling which will avoid any unwarranted tax deductions.

Provided their total earnings for the tax year are less than the personal allowance of £7,475, students will not have to pay any tax on the money they make.

To ensure their employers don't deduct tax that isn't owed, students need to fill in a form P38(S), which they can download here.

Students who fail to fill in the form won't lose out as they can reclaim any tax paid by sending HMRC a form P50, available here.

But by completing a form P38(S), student workers can avoid any wait in getting their money.

Stephen Banyard, director general of personal tax at HMRC, said: "We don't want 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."