Avoid Paying Tax on Your Part-Time or Summer Job

Avoid Paying Tax On Your Part-Time Or Summer Job:

Many students need a part-time job or a summer job to balance their student budget but you need to be aware that there is a £11,000 tax free allowance. This means that in the tax year, which runs from April to April, if you earn more than £11k, then you need to pay tax on every British Pound earned over £11k. However, if you manage your income wisely, you can avoid paying tax if you earn below this threshold over 12 months. However, if tax is taken off automatically from your payslip at source, then you will need to reclaim it from the HMRC.  

 

Tax Saving Tips:

1) If you are paid through PAYE (Pay As You Earn) then you are automatically taxed at source, so you will need to reclaim this tax if you earn less than £11k per year

2) If you work full time over the summer, then you will be taxed as if you earned that monthly amount throughout the whole year. If you earned less than £11k, you will be able to reclaim all of this tax paid 4 weeks after your last working day by filling in a P50 form

3) If you work throughout the whole year, then you will have to wait until after the April tax year end before you can reclaim back your tax paid

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