I've mentioned elsewhere that I am filing an organisation's P35 for 2011-12 and a slight problem has cropped up regarding students.
They have stated that four of the employees are students and so don't have any tax deducted. I'm really just seeking confirmation of my stance - or if I am wrong then if someone points this out to me.
These students work part time throughout the year (way below the threshold though). I'm of the opinion that they should be treated the same as any other employee. If this is their only employment then they will be given a tax code and not have any tax deducted. If they have another employment then they'll end up on the BR code and they'll need to claim back any tax overpaid at the end of the year.
It isn't going to affect the 2011-12 year but it may affect them for 2012-13. I think they may have heard of students not paying tax (signing a P38(s) form) and thinking it applies to all students. But surely that only applies to students working during their holidays.
While searching for an answer I came across a consultation document in 2008 proposing changes - were these changes ever implemented? Or am I correct in my stance?
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Never buy black socks from a normal shop. They shaft you every time.
Each time I deal with a P38, I feel the scheme is an anachronism. A student could conceivably only work holidays but still exceed the personal allowances (admitedly, less likely in recent years). It's a potential trip-wire if they work during term time.
Anyway, as these students work throughout the year, I agree with your stance and they should be treated the same as usual with the P45/P46 procedure. Just tell it like it is, and point out the P38 is only for holiday students.
Thanks for this response. Funnily enough, shortly before this reply they phoned me up. As I've known the person responsible now for the wages for some 30 years I wasn't bothered about the time (even though they did apologise for phoning me at that time). I did manage to clear a few things up with them and will have a proper discussion tomorrow.
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Never buy black socks from a normal shop. They shaft you every time.
P38S only applies to work done during holidays. I think there is clear wording on the document to that effect.
It is worth noting that P38S is obsolete from 6th April onwards. Under RTI the special treatment of certain student payments is ending, and they should be treated exactly the same as any other employee.
