Do Working Students Have To Pay Tax

Claim UK Tax Refunds for Non-Residents

Working students do have to pay income tax just like all other employed Britons and must contribute towards National Insurance. But there’s loads of good news, students on grants or student loans are exempt from paying tax, plus you only start paying tax once you exceed your ‘Personal Allowance’. Besides, on leaving the UK you can claim your UK tax refunds for non-residents. So, let’s take a look at when and where do working students have to pay tax and concessions to look forward to.

The Personal Allowance Bracket

Students are allowed to earn up to a specific amount before they have to start paying tax, that concession is known as ‘Personal Allowance’. You can contact our team for more details and help with filing your non-resident UK tax. 

The personal allowance for the 2018/19 tax year is set at GBP 11,850 which is the amount you can earn up to without becoming eligible for income tax. Good news if you secure a part-time job and earn up to GBP 11,850; you owe the taxman nothing!

Related Post: Tax Tips For Students In The UK

Paying UK Tax as a non-resident Past the Personal Allowance Quota

Once you exceed your personal allowance quota, the percentage of tax due changes according to your earnings.

• Up to GBP 11,850 – tax free
• BGP 11,851 to GBP 46,350 – 20% of your earnings
• And if you do earn over BGP 46,351 (unlikely as a student) you pay 40% of your earnings

Paying Tax via the PAYE System

PAYE or pay as you earn system is the most likely way many employees pay tax, their stipulated tax amount is automatically deducted by the employer and paid to HMRC. In other words, even if you are engaged in a short term job, you are expected to pay tax similar to a year-round job; but with the exception of claiming UK tax back at the end of the tax year. This is where you need the assistance of a seasoned tax accountant to make sure your PAYE tax code is correct and your refund forms are submitted on time in order for you to earn back maximum UK tax refunds for international students. Do contact us today!

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