HMRC reminds students they don’t need to pay income tax

HMRC has reminded students, including those studying to be accountants, that if they earn extra cash during the summer holidays, they are only required to pay tax if their income exceeds this year’s personal allowance of £7,475.

If students do not want their employer to deduct income tax, they should fill in form P38(S), and students who have already been taxed should download form P50 to reclaim the money from HMRC.

The Revenue’s director general of personal tax, Stephen Banyard, said HMRC doesn’t want students paying tax when they aren’t obliged to do so. By filling in form P38(S) they will be able to keep all their earnings for student essentials.

Meanwhile, tax credit claimants are reminded that the deadline for renewing their claims is July 31st. HMRC has also warned of email phishing scams that might appear in the run-up to the deadline. These emails tell the recipient that a tax rebate is due and invite them to visit a cloned copy of HMRC’s website. However, this scam is intended to obtain debit or card details which the fraudsters then use to attempt to take money from their personal accounts.

Tax credit claimants should also take extra care to ensure their claims are accurate. HMRC has warned that deliberate attempts to defraud the system will result in harsh penalties.

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