Student Tax Services

STS Frequebtly Asked Questions

Q) As a student, am I exempt from tax?
A) Students pay tax like everyone else, but due to the nature in which you work you often end up paying too much tax and that's where we come in.

Q) Why do students overpay tax?
A) As you often work in a part time / seasonal environment, such as the summer months only, you may not have received all your tax free allowances and hence you may overpay tax.

Q) Who are Student Tax Services?
A) We are qualified tax experts who have over 20 years of experience in dealing with student tax issues. Our team include members qualified with the Chartered Association of Certified Accountants and the Association of Taxation Technicians so you can be certain to receive the best advice possible.

Q) Why should I use you?
A) Here at student tax services we actually encourage you to get your tax back yourself! Our tax refund service has developed from an overwhelming demand from students who do not want to use a Tax Refund “Agency” due to high costs and often hidden charges.

Our administration charge is simple. A fixed fee of £50 plus VAT irrespective of how much your tax rebate is. We take the fee directly from your tax rebate so there is no cash outlay.We do not believe in working on a percentage basis and taking a higher fee as your repayment increases as is often the case. The work involved is the same, and we do not understand why “agencies” insist on this charging structure to rip students off.

Q) How long does it take to get my tax back from Taxman?
A) The time it takes does vary depending on HMRC’s busy periods, but in our experience you can expect the repayment back between 5 – 8 weeks after the tax claim has been submitted.

Q) I don’t think I have ever claimed any tax back and I left University 2 years ago?
A) You can claim any tax back up to six years back from the current tax year and the Tax Office will also pay you interest on back claims.

Q) I am on a work placement and will return back to full time study afterwards. Am I entitled to any tax breaks or additional benefits?
A) During your work placement you will be taxed as normal as any other taxpayer. You are not entitled to any special benefits or tax treatment for being a student.

Q) I have more than one job. I do not pay any tax on my first job and I do on my second job. Why is this?
A) You are entitled to your tax free allowances which may cover all your earnings. Often you will find your first employer will apply your allowance against your earnings. When you join your second employer, he will not know how much of your allowance will be available to use against your second batch of earnings. In this case, he will often assume all your tax free allowances has been used against first batch of earnings and hence tax your earnings at the basic rate of tax.

Once the tax year has finished, you should check you have used all your allowances, otherwise it may be possible you have overpaid tax.

Q) I am a full-time student working over the summer only. Is there any way to avoid National Insurance payments?
A) Unfortunately there is no way to avoid National Insurance , but please bear in mind that you only pay National Insurance once you exceed the lower limits either on a monthly basis or weekly basis , depending on how you are paid. Check our tax rates page for the limits.

Q) I have just started a Diploma at University. It is a self funded course and during my two year course I will continue to work full time (term time only) in my present job. Am I entitled to any tax relief on the cost of the course?
A) The rules for getting tax relief on the cost of your course whilst employed are very rigid and you must prove the expense is wholly, exclusively and necessarily incurred to carry out your permanent duties. If you are already working then this may be difficult to prove!

It is always worth checking, especially if your employment circumstances change.

Q) I am a US student on a working holiday with a full UK work permit for 6 months through BUNAC. I have filed a P38 form because I am only working 6 months and I will not earn enough for tax to be deducted. Before I return to the US I am not sure if I am eligible to receive a rebate.
A) If you completed form P38, then you should only pay the tax you ought to. Once your employment has finished, just check to see whether or not your Gross earnings are under or over your personal allowance. If it is under then you should not have paid any tax, and should apply for a tax rebate if appropriate.

Q) I have a tax code that shows ”BR” and my earnings are being taxed. What does this mean?
A) The "BR" tax code means that you are receiving NO tax allowances at all! This usually only happens if either

1) you have used all you tax free allowances for the year already - unlikely, as the tax allowance is given weekly or monthly and is spread evenly over the year, or

2) you have more than one job and your tax allowance is being used against the earnings in your other job, or

3) HMRC do not have a clear history of your earnings and have therefore issued a tax code which will ensure you will not underpay tax, but you may overpay tax.

STS Frequebtly Asked Questions

© Student Tax Services 2005. All rights reserved

© Student Tax Services 2005. All rights reserved

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