In order to earn a little extra money during the summer holidays many students will take on a job. Summer work for students is not only a great way to earn money; it also provides a student with some work experience. Here for any students who are planning to take on any summer work, is some important tax information that could help them while working.
To start with many students do not have to pay tax for their summer work. This is because they do not earn enough money to be taxed. So if you are a student who is hoping to work over the summer you need to know the earnings threshold for paying tax.
In the UK the threshold for paying tax is £6475. Anyone who earns less than this over the course of a year will not be taxed on their earnings. This applies to the majority of students.
National Insurance Contributions however (NIC) are taken from anyone who is earning money from employment. How much this will be depends on how much the student is earning.
Hopefully this tax information relating to summer work for students will be helpful for students who would like to take on summer work. As shown it can be a great way to earn a little money and keep occupied over the summer months.