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There is certainly a common misconception here in Britain that pupils are exempt from having to pay income tax. In this post, we uncover the fact and the fiction at the rear of college student taxes, and get a look at how to assert again any overpaid tax that you have already compensated read more here.

We have a well-liked false impression right here in Britain that students do not have to pay Earnings Tax - and although we detest to be the bearer of poor information, we are not likely to lie. You pupils are just as liable to shell out Income Tax as anyone else in Britain.

The confusion is most likely down to the simple fact that most college students generate less than the yearly tax-free of charge allowance - the threshold which determines no matter whether you earn sufficient to have to pay tax in the first spot. It really is presently set at six,475 for each 12 months, and with most pupils earning considerably less than this determine, the simple fact that you might be at uni is entirely irrelevant here.

And yet, even with the overpowering vast majority of pupils earning significantly less than six,475 for each 12 months, a absurd number of you finish up paying far too much tax every year.

College students making use of to our support have usually paid out also significantly tax for 1 of 3 causes

- They have paid out tax on the wrong tax code

- They have still left a job prior to the tax calendar year end

- They've paid out tax on their personal savings when they failed to need to have to

We'll protect the problem of tax on cost savings earnings in a later post. For now, allow us contemplate the initial two eventualities - how they arise, how they can be averted, and what to do if you've presently overpaid via.

Paying out tax on the mistaken tax code

This situation often occurs exactly where students are holding down multiple work. Difficulties crop up since your yearly tax-cost-free allowance is not break up up and shared across all of your work. HM Profits