[Continued from Student Tax Advice: Part 2]
- What is form P38(S)?
Students who plan to work only during the holiday periods, and expect to earn no more than the Personal Allowance (currently £6,475) in the tax year can ask their employer for a form P38(S), which they should complete and return to the employer at the start of their job - this will entitle them to receive their money tax free.
- What is form P45?
Form P45 is given out at the end of a job and shows the pay received and tax deducted between the start of the tax year (6 April) and the date the employment ceased (if before 5 April the following year). You should keep your P45 in a safe place for future reference.
- What is form P60?
Form P60 summarises the yearly earnings and tax paid for a particular job. Students with more than one job at the 5 April each year will receive a P60 from each employer. As above, keep your P60 form in a safe place for future reference.
- What does my tax code mean?
Your tax code shows how much you are allowed to earn before paying any tax. This helps employers to work out how much tax to deduct from your pay.
- What if I have more than one job?
Like everyone else, students have only one Personal Allowance for each tax year and if they start a new job without finishing their first job, their second employer will ask them to fill out and sign a form P46. The employer uses the information on the P46 to notify HM Revenue & Customs (HMRC) that a new employee has started and to ensure the correct code is operated on earnings from the second job.
- What are National Insurance contributions (NICs)?
NICs pay for social security benefits that you may receive later in your life and help pay for the National Health Service. National Insurance contributions are recorded against a person's name using a National Insurance Number. NICs are deducted at source from pay by employers and cannot be claimed back. They are only paid once your income exceeds £110 a week. You'll need to keep a record of your National Insurance Number for any dealings with their tax office and their employer(s).
- Who do I need to tell when I change address?
HMRC needs to be kept informed of your address. This is each individual's responsibility. Don't assume your college or university will do it. Keeping HMRC informed of your address ensures you won't miss any important letters or forms - or rebates!