Are you a student paying taxes?
If you are, not only are chances good that you’re being taxed under the “Pay as you Earn” (PAYE) taxation system, but you’re probably also being overtaxed. As a student, your number one concern is likely grades, making taxes a lower priority, but remember that you might be owed money back from the government!
If you’re a student and you have a job you’re probably working part-time. Unfortunately for you, the PAYE system was not designed with part-time employees in mind.
Read on to see if you qualify for a student tax refund!
According to HM Revenue & Customs, employers are directed to include all employees on any Full Payment Submission, which documents taxes paid. If you reach the Lower Earnings Limit (LEL), your employer must tax you according to the PAYE system.
The LEL for 2013 is:
- £109 a week
- £473 a month
- £5,668 a year
If you’ve made more than 473 pounds in a month during the time you’ve been a student and you’ve paid taxes, check to see if you’re eligible for a refund.
If you answer yes to the following three questions, you’re eligible:
1) Were you born after April 5th, 1948?
2) Are you paying a basic tax rate of 20% or higher?
3) Are you eligible for a Personal Allowance of £9,440 for the 2013-14 tax year?
If you answered yes to these three questions or if you aren’t sure about questions 2 or 3 (we’re pretty sure you’re going to be confident about your answer to question 1), contact us so we can help you determine if you are eligible for a tax refund and how much it will be. Also, if your payslip shows any of these codes, contact us because you’re paying a tax you don’t need to pay and that money should be refunded to you:
- 747L W1
- 747L M1
- 747: X
It’s worth your while to consult us because we only take a commission if you get a refund and when we do, it comes from the refund so you never end up paying us directly.