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Volunteering and training

Updated on 12 April 2023

Students

While a student, you may undertake some kind of voluntary work or additional training. This can give you practical experience both of different types of work and workplaces, and may improve your chances of finding a paid permanent job in a sector you enjoy.

This part of the student section is designed to inform you of the tax issues arising whether or not you have been paid for the work you have done.

Illustration of volunteers

What is the benefit of doing voluntary work?

Employers often value the commitment you have shown through your volunteering/internship. In addition, you will have learnt other transferable skills such as improved ability to communicate with others, teamworking or organisational ability, for example. It is also likely you will be able to obtain a substantive reference and have an interesting topic to discuss at interviews.

How do I interact with the tax system if I am a volunteer?

Although you may be given various titles for the work you do, it is important to understand your actual status for taxation purposes. Depending on the arrangements made with the organisation you are doing work for, you may be employed, self-employed or neither – that is, a volunteer.

If you are being paid, other than reimbursement of actual expenses, then you are likely to be employed or self-employed, with associated rights and responsibilities.

You may be sponsored on your course by a company. If this is the case, you should check our training contract page on this to understand whether or not the sponsorship payment will be taxable.

Even if the only payments being made to you are for expenses, you may find yourself with a tax liability, depending on the actual payments made to you.

Also, you will want to ensure that any voluntary work you carry out does not end up restricting any benefits that would otherwise be paid to you, or at least understand the potential consequences. While you are a student you may be entitled to claim certain benefits and/or tax credits. In most cases your voluntary work will have no effect on your eligibility to claim these benefits.

To get benefits while you are performing voluntary work, you need to be sure that you can attend interviews, when asked, and that you are free to start work within a short period of time. Further information is available on GOV.UK.

What is the difference between volunteering and being an intern?

Assuming you are not being employed (that is paid for working) as an intern, from a tax point of view there will be no difference.

Tax guides

Introduction to the tax system How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? What if I cannot pay my tax bill? Do I need to complete a tax return? Self Assessment: understanding the basics What is Simple Assessment? How do I claim tax back? How do I claim back tax I have overpaid through PAYE on wages or pensions? How do I claim back tax if I complete a tax return? How do I claim back tax if I am taxed under the Construction Industry Scheme (CIS)? How do I claim back tax on savings income? How do I claim a marriage allowance refund? How do I claim back tax on a payment protection insurance (PPI) pay-out? Should I use a tax refund company? What is National Insurance? How do I get a National Insurance number? What are Specified Adult Childcare credits? What is Scottish income tax? What is devolution? Do I have to pay Scottish income tax? How does Scottish income tax work? What is Welsh income tax? Do I have to pay Welsh income tax? Do I have to join a pension scheme? Tax relief on your pension contributions HMRC digital services Enquiries, penalties, appeals, complaints and debt Enquiries How to survive an enquiry by HMRC Tax penalties Tax appeals Alternative Dispute Resolution How do I complain to HMRC? What if I cannot pay my tax bill? What if I have a tax credits overpayment?
Am I employed, self-employed, both or neither? Working through a limited company What is the national minimum wage? How do I work out my tax? What income is taxable? What tax allowances am I entitled to? What tax rates apply to me? How is my tax collected? How is tax collected on taxable state benefits? How do I check my coding notice? Do I need to complete a tax return? What tax do I pay on redundancy payments?Employment benefits and expenses What are benefits-in-kind? What payments and benefits are non taxable? What if I incur expenses in relation to my job? What travel expenses can I claim? What if I use my own car for business purposes? Payroll giving Allowances and expenses paid to armed forces personnel and deductions from their income Pensions and employees What is automatic enrolment for employees? What National Insurance do I pay as an employee? How do I repay my student loan? What if I do not pay enough tax? What if I pay too much tax? What if I work abroad temporarily? What if I am in the armed forces and work overseas? First time workers Apprenticeships

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