Student tax guide

Mature students discussing tax

Many students have part-time jobs while they’re at university, and some students have full-time jobs over Christmas, Easter and the summer holidays. This means they’re receiving an income, which may need to be taxed, depending on how much is earned.

If you earn more than £917 a month as a student from your job, you will need to pay Income Tax. Meanwhile, if you earn more than £155 each week, you’ll need to pay National Insurance. Don’t fret, because this is usually done by your employer through the PAYE (Pay As You Earn) scheme, although you should double-check this.

You may end up having more money deducted than you should, so keep track of your finances to ensure you are not wrongly overpaying tax. If this does happen, you can reclaim it from HMRC, but this needs to be done before the end of the financial year (early April).

What income is exempt from tax?

Student loans are not taxable, nor are: contributions from parents and relatives, scholarships benefits, income from Individual Savings Accounts (ISAs), or student prizes for academic achievements.

If you have any issues or questions then you can contact your university, who will be able to help you out.

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