The following are common questions that we have been asked by students both on our website and generally. The list will be updated regularly for new queries or other material which you might find useful.

In addition students are encouraged to write to us using our Contact page with issues you do not think are adequately covered in this part of the website.

Working in term time and holidays

What is the minimum wage for a worker in the UK?

How much can I earn before I pay any tax or NIC?

What is a form P45?

What happens if I start a new job and I don't have a form P45 to hand in?

What is a form P46 and how does it work?

How am I taxed if I work just during the holidays?

How am I taxed if I work during term time?

Do I need to pay National Insurance contributions if I work?

How am I taxed if I have more than one job?

Can I decide whether to be employed or self employed?

What if I go abroad to work during my holidays?

Tax repayments

I have received a form P60 - do I send it to the Revenue to get a tax refund?

Where can I find out about getting a tax repayment if I think I have overpaid tax on my wages or on my bank/building society interest and dividends?

Do I need to wait until the end of the tax year before I can get a tax repayment?

State benefits & tax credits

Can I claim tax credits whilst I am a student?

Which state benefits might I be eligible for as a student?

Do I have to pay tax council tax when I am a student?

International Students

I am an international student - can I work in the UK whilst I am a student here?

If I am an international student with a temporary NI number - can I still claim a tax repayment?

Do overseas students have to pay council tax?

Other topics

Student loans - how do the repayments work?

What are Education Maintenance Allowance (EMA) & Higher Education Student Support Guarantee (HESSG)?

Will I need to pay tax if I receive employer sponsored payments for studying full-time?

Do I have to pay tax on money given to me by my parents?

I have been awarded a scholarship - is it taxable?

Working in term time and holidays

What is the minimum wage for a worker in the UK?

• The National Minimum Wage applies to nearly all workers and sets hourly rates below which pay must not be allowed to fall. You can find current and previous rates on the BERR (previously called DTI) website

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How much can I earn before I pay any tax or NIC?

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What is a form P45?

• A form P45 is completed by your employer when you leave a job. He will detach Part 1 and send it straight away to your tax office. He will then hand Parts 1A, 2 and 3 (unseparated) to you when you leave. Detach Part 1A and keep it safe as you will be unable to obtain a copy. You may need the information shown on Part 1A when completing a tax return.



• When you go to a new job give parts 2 & 3 of the form P45 to your new employer, or you will have tax deducted using the emergency code and may pay too much tax.



• If you do not want your new employer to know the details on this form, send it to tax office immediately with a letter saying so and giving the name and address of your new employer. The tax office can make special arrangements, but you may end up paying too much tax for a while as a result.

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What happens if I start a new job and I don't have a form P45 to hand in?

• Your employer should have asked you to complete and sign a form P46. Have a look at the next question for more detail on this.

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What is a form P46 and how does it work?

• When you started the job - if you did not have a form P45 to hand in, then your employer should have asked you to complete and sign a form P46.



• To download a P46 and for help in completing the form please use the link.



• From 6 April 2009 if your employer has more than 50 employees or from 6 April 2011 if he has less than 50 - the way the P46 information is filed with HMRC is changing. You will no longer be required to complete the pre-printed form P46 but you will have to supply your employer with the same information that used to be on the form. They must get this information directly from you (not e.g. third hand via your manager) and they must keep a record of the facts and how they got them.



• In the meantime your employer will use what is called an emergency code. This will ensure that you will get a proportion of your tax free personal allowance each payday so that you will only pay tax on the balance. However an emergency code does not take into account any surplus allowances you may have from earlier weeks when you did not work nor does it take into account any tax you have already paid.




Everyone is entitled to receive £6,035 of income for 2008/09 without paying any tax - your tax free personal allowance - you then pay20% basic rate tax on the remainder of your wages.



• If this is not your only or main job your employer will by law be obliged to take tax at 20% basic rate from the wages he pays to you.



• Once you have a correct coding notice - this will then look at the whole of the 2008/09 not just each week or month in isolation and you may automatically get a refund of the tax you have already had deducted.

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How am I taxed if I work just during the holidays?

• If you have a form P45 (because you have already worked or claimed Job Seekers Allowance during the year) give it to your new employer. The form P45 shows your Pay As You Earn tax code, your total earnings and how much tax you have paid since the start of the tax year.



• If you think your total taxable income in the whole tax year is likely to be no more than your tax-free personal allowance (the amount of income you can have before you start paying tax, £6,035 for people under 65 for the year ending 5 April 2009) then ask your employer for form P38(S).



• This is a short form that you complete and sign and give back to your employer. It authorises your employer to pay you free of tax because you are a student.



• If your employer has deducted any tax, say before you return the form P38(S) to him, he will refund the tax deducted.



• The P38(S) is a difficult issue - you cannot use it if you are working in term time. This is a major problem for a lot of students because if you do work in term time you will come within the tax system and probably pay too much tax. Do bear this in mind and if it applies to you make sure you claim a repayment.



• From 6 April 2009 if your employer has more than 50 employees or from 6 April 2011 if he has less than 50 - the way the P38(s) information is filed with HMRC is changing. You will no longer be required to complete the pre-printed form P38(s) but you will have to supply your employer with the same information that used to be on the form. They must get this information directly from you and they must keep a record of the facts and how they got them.

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How am I taxed if I work during term time?

• You cannot ask your employer to pay you tax free at any time unless you work during holidays only and your income for the tax year will be less than your tax allowances so that you can complete form P38(s). We covered this in the previous question.




If you work during term-time your employer will operate the Pay As You Earn (PAYE) system for you in the same way as for other employees.



• This means that the Revenue will issue you with a Coding Notice to help your employer deduct the right amount of tax. Click on the link for information about how Coding Notices & code numbers work.

• When you started the job - if you did not have a form P45 to hand in, then your employer should have asked you to complete and sign a form P46.



• You can find more about form P46 from an earlier FAQ - click here to see this.

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Do I need to pay National Insurance contributions if I work?

• If you earn more than a certain amount your employer will have to take NIC from your wages. How much NIC you pay depends entirely on how much you earn in the week or month.



• Current NIC rates and amounts can be found in Tax facts and figures



• Any NIC you pay gets recorded on your contributions record and helps count towards your State pension or certain other benefits.



• For a lot more information on NIC click on one of the following links NIC for the employed or NIC for the self employed

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How am I taxed if I have more than one job?

• If you have more than one job - you should not tick any statement on the form P46 nor sign it but simply hand it to your employer who will complete the remaining details.



• On the wages from any job other than your main one - your employer will by law be obliged to take tax at 20% from the wages he pays to you.

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Can I decide whether to be employed or self employed?

• Working out whether you are employed or self employed is not straightforward. It is also important to remember that if someone offers you work and gives you a 'choice' of being employed or self-employed or tells you that you are self-employed - DON'T assume that they know what they are talking about.



• Have a look at the Low Income workers part of the website where there is a useful guide to deciding if you will be employed or self employed



• If you want to be absolutely sure that you are self employed - you can phone the Status Inspector at your local Revenue office to discuss your circumstances.

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What if I go abroad to work during my holidays?

• Whether you have to pay UK tax or not very much depends on how long you spend working out of the country. Your earnings may still be liable for UK tax although they may have already been taxed in the country where you worked. But don't worry you don't have to pay tax on the same wages twice. The UK Revenue takes into account any foreign tax you may have paid when working out how much UK tax is due.



• Where there is a double taxation treaty you may not have to pay any UK tax on some income. If there is no treaty, you may be able to claim that the credit should be given against UK tax but you will only get the lower of the overseas tax liability and the UK tax due on the same income. You might not get all the tax allowed.



• When you leave the UK to work abroad you have to let the Revenue know and there is a form to fill in - a form P85.



• If you want to know some help filling in the form or more information about tax and working abroad, the HMRC Residency, which is part of Revenue - International, may be able to help you with UK income tax matters. You can write to or e mail HMRC Residency or you can phone them - you can find their contact details here

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Tax repayments

I have received a form P60 - do I send it to the Revenue to get a tax refund?

• Form P60 is the certificate of pay received and tax/NI taken off for a particular tax year. It will be given to you by your employer in May following the end of the tax year.



• If you think you have overpaid tax for the tax year - you should write to the Revenue with details of your income and ask them if you are due a repayment. Initially it would be better just to send a copy of the form P60 because if the original form is lost you may have to obtain a duplicate. The Revenue have changed their rules and now say that if an employee asks for another copy, their employer may issue a duplicate. Any substitute form P60 must be clearly marked with the word 'Duplicate'. So to avoid any problems, it would be better in the first instance to be sure that you do in fact have a repayment coming to you before forwarding any originals.

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Where can I find out about getting a tax repayment if I think I have overpaid tax on my wages or on my bank/building society interest and dividends?

• There is a comprehensive section on obtaining a tax repayment here .

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Do I need to wait until the end of the tax year before I can get a tax repayment?

• You may be able to claim a tax repayment before the end of the tax year using form P50 if:
  
  
  • you are out of work or have given up work altogether and
  • PAYE tax has been taken off your pay since 5 April last, and
  • you are not claiming Jobseeker's Allowance or taxable Incapacity Benefit

  
  
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  State benefits & tax credits

  
  

  Can I claim tax credits whilst I am a student?

  
  
  • You may be able to claim tax credits depending on your personal circumstances.
  
  
  
  • The easiest way to get more information on this is to look at the links below to the student part of this website here and the HMRC website.

  
  
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  Which state benefits might I be eligible for as a student?

  
  
  • It is worth checking whether you can claim any state benefits whilst you are a student. Have a look at the sections on this website by clicking here.
  
  
  
  • You can find general information on a number of benefits on the DWP website by clicking here

  
  
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  Do I have to pay tax council tax when I am a student?

  
  

  If you are a full-time student you should not normally have to pay Council Tax. If your partner is a student you may be able to get Council Tax Benefit.

  See the DWP frequently asked questions section on Council Tax Benefit and the NUS leaflet - Students & the Council Tax for more information.

  
  
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  International Students

  
  

  I am an international student - can I work in the UK whilst I am a student here?

  
  
  • If you are a student from an EEA country or Switzerland - you do not need permission to work in the UK. You will need your passport or identity card and you may need to show this to your employer as proof of your identity.
  
  
  
  • If you are a student from outside the EEA you can:
    
    
    • Take a work or internship placement with an employer or;
    • Work in your free time during the course or full or part time in holidays.....
    
    unless your passport is stamped specifically - 'No work' or similar and you do not have the consent of the Secretary of State to do so.
  
  
  
  • An internship is a short period of paid work that an employer may offer a student as a future potential employee. The internship should not be for longer than 3 months.
  
  
  
  • You will also be able to follow a sandwich course even if there are restrictions on your employment providing placement does not extend beyond the end of the course. A sandwich course is a course with a set work element.
  
  
  
  • If you are a non-EEA student you can work for up to 20 hours a week in term time unless you have a work placement or internship but you must be employed and not self-employed. You can however work full time during vacations.
  
  
  
  • These are only the basic rules. For more information you should have a look at Find your way to work - International Students: Working in the UK.

  
  
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  If I am an international student with a temporary NI number - can I still claim a tax repayment?

  
  
  • There is no reason why you should not be able to reclaim any overpaid tax if your employer is already using the National Insurance number on your payslip when he pays you your wages.

  
  
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  Do overseas students have to pay council tax?

  
  
  • As regards the rules as they apply to students and council tax - these can be complicated.
  
  
  
  • It does not matter whether you are a UK or international student - the conditions apply equally to both categories.
  
  
  • The easiest way to find out whether you will need to pay any council tax is to have a look at the National Union for Students (NUS) welfare information sheet 17 - Students and the Council Tax where the situation is set out in detail.

  
  
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  Other topics

  
  

  Student loans - how do the repayments work?

  
  
  • You will normally start repaying your loan at the start of the tax year after you finish or leave your course but only if your annual income is above £15,000. Your annual income is the amount before tax you receive on your earnings. Any money you earn before the start date should not be taken into account when your employer or you work out your repayments.
  
  
  
  • As each pay day is looked at separately, your repayments may vary according to how much you have been paid in that week or month. If your income falls below the starting limit for that week/month, your employer should not make a deduction.
  
  
  
  • If you are working and you get more than £2,000 interest a year from your savings this may affect how much you have to repay.
  
  
  
  • Use the link for more information on student loans and repayments

  
  
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  What are Education Maintenance Allowance (EMA) & Higher Education Student Support Guarantee (HESSG)?

  
  
  • Education Maintenance Allowance (EMA) is a tax free benefit which pays up to £30 a week directly into your bank account if you stay on in education at school or college after you have taken your GCSEs. Most young people can claim EMA for two to three years depending how long your studies last.
  
  
  
  • You can also get a bonus of £100 in January and July with a further £100 bonus in October if you come back for a second year.
  
  
  
  • EMA does not affect any other benefits your family might get and is paid on top of any earnings you might have from a part time or holiday job.
  
  
  
  • For more details and useful links to other information have a look at the section on EMA on our website.
  
  
  

  • It is intended the Higher Education Student Support Guarantee (HESSG) will be introduced from September 2008 for 16 year-olds who qualify for an Education Maintenance Allowance.

    The HESSG will be available if you:

    • got you first EMA payment in or after September 2008
    • got your EMA for a course based at school, college or work (but not if you did an Entry to Employment course)
    • live in England

    You'll also need to meet the usual eligibility rules for higher education financial support.

    You can use this link to get full details about HESSG and whether you are likely to qualify.

  
  
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  Will I need to pay tax if I receive employer sponsored payments for studying full-time?

  
  
  • In certain circumstances your employer may be able to make payments to you free of tax and NICs when you are taking a full-time course, including a sandwich course, at university or technical college. Your employer would be making such payments to support you while you are studying full-time and not for when you are working at your job.
  
  
  
  • To qualify for the exemption from tax and NICs you must satisfy certain conditions which you can find details here together with other useful information and links.

  
  
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  Do I have to pay tax on money given to me by my parents?

  
  
  • This will depend on the type of gift or loan made.
  
  
  
  • Have a look here to see how the rules work depending on whether your parents give you a gift of an asset or property or a loan.

  
  
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  I have been awarded a scholarship - is it taxable?

  
  
  • Nearly all scholarships and awards are free of tax.
  
  
  
  • It is advisable for students to have it confirmed in writing by the giver of the scholarship that it is in fact tax-free.
  
  
  
  • If this is so it is likely that the scholarship or award will also not be regarded as income for tax credits purposes.

  
  
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