|
Students are not required to pay tax on the first £5,225 of income earned in the year, which generally means students go tax-free during their stay at university. In addition, neither the Student Loan nor the Maintenance Grant count as income, therefore no tax is paid on them.
Students that work on a part-time basis and earn less than £5,225 should ask for a P38(S) form from their employer in order to receive tax-free pay. For those that work throughout the year, tax is needed to be paid as they earn. However, they can contact the tax office to reclaim any overpaid tax at the end of the tax year, which falls on April 6.
To help protect their savings for their future, students can invest any savings the may have in an ISA (Individual Savings Account) which are free of tax. Up to £3,000 each tax year can be invested in a mini cash ISA.
|
