Students no longer have to wait until April 2012 to reclaim their overpaid taxes and advisers from ACCA are telling students to check out how much they are owed. Many thousands of students will be starting their new year at university in the next week or two, and ACCA, the Association of Chartered Certified Accountants, are reminding those intend working part time, or who had summer jobs, to claim back their overpaid tax.
The head of tax at ACCA, Chas Roy-Chowdhury, says that any money that students earned through part time or summer jobs isn’t likely to take them over the personal tax limit. He urged students to check payslips and ensure that they haven’t paid any tax they didn’t have to, and if they find they have, to claim it back straight away and not wait until April, the end of the tax year.
The personal tax allowance for the year 2011/12 is £7,475. Anyone who earned under this amount in the single tax year April to April isn’t eligible to pay any income tax. This tax should only be paid on earnings which have exceeded the personal allowance.To make things easier for businesses, tax is usually taken out of pay packets automatically, even if it shouldn’t be,’ says Chas Roy-Chowdhury.
Students should work out what they earned during the summer or what they expect to earn over the coming months. If this figure comes under the threshold and students see from their payslips that they have been paying or are paying income tax, they should get in touch with their nearest tax
However, while you can claim back overpaid income tax, there’s nothing you can do about National Insurance Contributions. With few exceptions, everyone in work has to pay these.HMRC can be contacted about overpaid tax on 0845 300 0627.
Those claiming overpaid tax should have their National Insurance number to hand. Those still working should get a rebate in their next pay packet, while those no longer working can expect a cheque. You can also find out more information on overpaid tax on HMRC’s website, here: http://www.hmrc.gov.uk/incometax/overpaid-thro-job.htm#1
‘To avoid future problems during holiday times, whether at Christmas or Easter or next summer, students can fill out a P38S form,’ continues Chas Roy-Chowdhury. ‘This stops tax from being automatically taken out of your pay packet during holidays and saves you from the hassle of tracking down your rebates.‘University can be a worthwhile but expensive experience. If you’re owed money, there’s no point waiting for HMRC to give it back to you; you need to get on the case.’