Employing students over the summer?

Potentially you could reduce the tax that is deducted from them each month!

The student must confirm they will return to full time study at a college, school or university and will continue until at least 5 April 2012. Also, the student must not be planning to work during term time.

If this is the case, ask them to complete and sign the HMRC form P38S (2011) which allows them to earn their full annual allowance of £7,475 from their work over the summer before any tax is deducted.

Watch out! – The tax exemption does not cover NI contributions, so if the student’s pay is at or above the earnings thresholds you must deduct employees NICs and pay the appropriate employers NICs.

 If you require any further guidance with this then please contact Harri today on 01792 410104 or email hld@bevanbuckland.co.uk 

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