Do full time students pay tax on their earnings from work?

jay213

Do full time students pay tax on their earnings from work?

I'm studying full time at university and working part time earning around 10k per year. I was speaking to a friend who is going to another university and they mentioned that when they get their pay from work that they don't get taxed. I asked why and they said that they don't get taxed because they are a student. I'm not 100% sure what he earns or if that matters? but I think it's something between 7-8k (based on him working part-time, but he can up his hours now it's the holidays).

I'm just wondering if I should be paying tax on my earnings? as my friend thinks that I shouldn't be. I've been a student for 2 years now, one year in college and one year in Uni so far, if I wasn't supposed to be paying tax for any of that time would they refund me?

Any info or advice will be appreciated.

tbs624

You have an annual Personal Allowance of £8,105. You would have to pay tax on any amount over that.

liney

There is a common misconception that students don't pay tax.
Any student not paying tax just isn't liable because they earn too little. It's nothing to do with their student status.

In short, if you earn 10k you will pay tax even if you are a student.

There is an exception which saves the hassle of claiming a refund, but to qualify you have to only work during holidays and earn less then the 8k allowance in the year. You would fill in a P38, but this does not apply to you.

Person_one

Its lovely when the refund cheques arrive, if that helps.

Derivative

As above.
Student grants and loans are not counted as income.

If he earns £8k+ a year from employment he will have to pay tax, otherwise not.

jay213

Thank you all for your comments. I understand how it works now.