Summer hospitality staff reminded earnings could be tax free

By Emma Eversham

- Last updated on GMT

Related tags: Income, Tax

Students working in restaurants over the summer do not have to pay tax unless they earn more than £7,475 in a year
Students working in restaurants over the summer do not have to pay tax unless they earn more than £7,475 in a year
Hospitality businesses taking on students or temporary staff during the summer are being reminded that these employees may not need to pay tax on their earnings.

HM Revenue & Customs has sent out the reminder in advance of the holiday season when many undergraduates look for temporary work.

Many people are unaware that if they earn less than £7,475 in a tax year they do not have to pay income tax.

Stephen Banyard, director general of personal tax at HMRC said: "We don’t want students to pay tax when they don’t owe any, so we’re encouraging them to fill in a P38(S) and send it back to us. That way they can keep all the money they’re earning for student life’s essentials.”

Students must fill out a P38(S) which needs to be sent to HMRC to ensure they are tax-exempt. Employers and students can download the form at www.hmrc.gov.uk/forms/p38s.pdf

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