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Income Tax - UK nationals only
As a student if you only work during the holidays and know that your annual income will not exceed your personal allowance (£8,105 in 2012/2013) you should complete from P38S, this will stop tax being deducted at source (you cannot do this if your job is during term).
Income from savings
Students do not need to pay any income tax on the interest they earn on money in credit at banks or building societies. Normally tax is removed automatically before you receive the interest. Provided that your total income (excluding your student grant and student loan) is less than £8,105 for the tax year 2012/2013, you have the right to receive all your interest without any tax having been deducted. There are additional allowances for spouses, children, etc. To achieve this, complete Inland Revenue form R85 (which is available from banks, post offices and the Inland Revenue) and send it to your bank or building society. The tax you save will boost your income from interest on credit balances by at least 20%.
Further information from the Inland Revenue
The Inland Revenue has an online resource for students. It has an online tax checker so students can see if they are owed any tax, how to get it back, and other information about tax that they might find useful.
Go to the webpage below
www.inlandrevenue.gov.uk/students/
For tax forms and general information relating to students see:-
www.inlandrevenue.gov.uk/individuals/fgcat-students.shtml - (Tax forms)
http://studenttaxadvice.direct.gov.uk/index.html - (General information)
