Are students exempt from paying tax?

amcluesent

>I do Economics at UCL....so VERY mathematical<

Why don't you take some of your grant and open a spread-betting account to test out if your knowledge of economics can beat the market? At your age you can go highly-geared, if it all goes pear-shaped you'll just need to stay clear of the Union bar for a bit to save some pennies

oldfella

5035 is the current tax year, after April 5 it is 5225

JoeA81

My question is, how have you managed to get through most of your first year at Uni, and still have £5000 worth of loan left!? That must be near the maximum amount you can get...so how come you havent spent any of it?

Surely you must have living expenses, so you must have another form of income...and might this count towards your tax allowance?

tkane

Well I got about £6.5k in loans and grants altogether. Then my uni gave me a bursary....I live at home, so I didn't have to spend too much...plus I've learnt quite a bit from my parents (who invest invest invest) so instead of blowing my loans on unecessary things now...I'm saving the loans up and hopefully should come out with a decent lump sum to put a deposit on a house when I graduate....I'll also have my salary from my yr2 internship at an investment bank

Reestit_Mutton

tkane wrote: »

I'll also have my salary from my yr2 internship at an investment bank

Aha!....the devil is always in the detail...

You will need to take into account any salary (before tax and NI are taken off) from your internship payable prior to 06 April 2008 when calculating whether or not you are likely to blow your SPA for the 2007-2008 tax year.

It's entirely possible that you may not be eligible for tax free interest this coming tax year afterall.

Any overpaid tax on savings interest is also claimable in arrears so it may be better to wait until the 2007-2008 tax year has finished before doing your sums and submit a self-assessment tax return ot claim back any overpayment then.

That said, the 2006-2007 tax year is coming to a close and, if you haven't registered your savings for tax-free interest already, you may have an overpayment to claim back for this year also. The only issue is whether the overpayment is big enough to make it worth the effort of filling in a tax return.

HtH
Reestit Mutton

tkane

Hi, thanks for that warning. The internship would be at the end of year 2 of my degree....and I've only just finished year 1. So I don't think I have to worry about the next tax year....just the one after that: 2008/09.