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If i am a student do i pay tax on my wages?


i am a full time student at uni (in england) and have always paid tax on my earnings. i was speaking to one of my friends and he said i shouldn't pay tax because im a student??

Students in the UK are not exempt from tax! Neither would a new-born baby be if it had the necessary income level. You can currently have income of 拢5435 before you become liable to tax. After that you have a 20% deduction.
There are three types of students. The ones who work part-time throughout the year, and students on sandwich courses. Both are treated as normal employees. Students who only work at vacation time can sign form P38 at their job and, providing they do not go over the free pay limit, do not suffer tax deductions or emergency tax.
A lot of students do not pay tax, not because they are exempt, but because they earn less than their tax-free allowance.

Mizangel and AWOL are almost right about the tax free allowance, but AWOL is dangerously incorrect.
In the Uk everyone has a tax free allowance which this year is 拢5345. If you earn more than that over the whole year, you dont pay tax. It doesnt matter how old you are, what your income is, or whether you are a student or whatever.
The P38s only applies if you are only wokring during the holidays and don't expect to earn mroe than 拢5435. It does not apply to students who are working the whole time.

Craig is right. You cannot be taxed on the first 拢5225 that you earn, but after that you will be taxed as normal. If you have been paying tax, then you can get a claim form to get it back by contacting the inland revenue.

To avoid paying tax when you shouldn't have to, always inform your employer that you are a student, and they will ask you to fill out a P38 - this means that if you take a job during the holidays and expect to earn less than 拢5225, then your income will not be taxed. However, if you go over the threshold then you will have to start paying tax.

This article should clarify it for you.

it depends how much you earn, also any wages earnt in the hols not term time is taxable, go to your tax office wtih your latest wage slip or p60 if you have it yet and you may well get a wodge of your tax back!!

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