Hundreds of thousands of students are starting their new university year in the next few weeks, and ACCA is reminding those who worked summer jobs or are planning to work part-time at university to claim back any overpaid tax.
‘Money earned by summer jobs or part-time work is unlikely to push income over the personal allowance limit,’ says Chas Roy-Chowdhury, head of tax at ACCA. ‘Students need to check their payslips to make sure they’ve not paid tax that they don’t owe. If anyone has overpaid tax, they can claim it back now; they don’t have to wait to the end of the tax year.’
The 2011/12 personal allowance is £7,475. Anyone who earns under this amount in a tax year (April-April) does not have to pay income tax. Income tax should only be paid on money earned over the personal allowance threshold.
‘To make things easier for businesses, tax is usually taken out of pay packets automatically, even if it shouldn’t be,’ says Chas Roy-Chowdhury. ‘Students should work out what they earned during the summer or what they expect to earn over the coming months. If this figure comes under the threshold and students see from their payslips that they have been paying or are paying income tax, they should get in touch with their nearest tax office.
‘However, while you can claim back overpaid income tax, there’s nothing you can do about National Insurance Contributions. With few exceptions, everyone in work has to pay these.’
HMRC can be contacted about overpaid tax on 0845 300 0627. Those claiming overpaid tax should have their National Insurance number to hand. Those still working should get a rebate in their next pay packet, while those no longer working can expect a cheque. You can also find out more information on overpaid tax on HMRC’s website (see 'related links')
‘To avoid future problems during holiday times, whether at Christmas or Easter or next summer, students can fill out a P38S form,’ continues Chas Roy-Chowdhury. ‘This stops tax from being automatically taken out of your pay packet during holidays and saves you from the hassle of tracking down your rebates.
‘University can be a worthwhile but expensive experience. If you’re owed money, there’s no point waiting for HMRC to give it back to you; you need to get on the case.’
For further information, please contact:
Nick Cosgrove, ACCA Newsroom
+44 (0)20 7059 5989
+44 (0)7963 496144
Helen Thompson, ACCA Newsroom
+44 (0)20 7059 5759
+44 (0)7725 498654
Notes to Editors
- ACCA (the Association of Chartered Certified Accountants) is the global body for professional accountants. We aim to offer business-relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management.
- We support our 147,000 members and 424,000 students in 170 countries, helping them to develop successful careers in accounting and business, with the skills required by employers. We work through a network of over 80 offices and centres and more than 8,500 Approved Employers worldwide, who provide high standards of employee learning and development. Through our public interest remit, we promote appropriate regulation of accounting and conduct relevant research to ensure accountancy continues to grow in reputation and influence.
- Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. We believe that accountants bring value to economies in all stages of development and seek to develop capacity in the profession and encourage the adoption of global standards. Our values are aligned to the needs of employers in all sectors and we ensure that through our qualifications, we prepare accountants for business. We seek to open up the profession to people of all backgrounds and remove artificial barriers, innovating our qualifications and delivery to meet the diverse needs of trainee professionals and their employers.