Quick Q about students and employment

[L-V-S 10]

I doubt there is but it was a passing thought -

 

Is there a fixed amount of hours the Inland Revenue has set that students can work?

 

LVS

[biotechpete 10]

No, there's no limit

[steveh 10]

There's no limit on hours but if they earn too much money (by working too many hours) then there are tax implications (i.e. they have to pay some once they pass the same threshold as everyone else).

[L-V-S 10]

Explain that to me, Steveh.

[steveh 10]

Well you I and everyone have a basic tax allowance of around £5k a year under which we pay no income tax on earnings. If you have a normal employed job then and earn say £15k a year you only pay tax on £10k of it but to make your montly income consistent they spread the tax throughout the year (rather than 4 months paying nothing and 8 paying lots).

 

So as a student if you are projected to earn less than the limit of £5k a year you can fill out some forms and pay no tax (if you go over the limit you have to pay as usual) whereas normally the company would start to deduct immedaitely in line with the above to even out your pay over the year. If they work too many hours then the projected earnings would become too high and they'll be taxed on it all and have to reclaim at the end of the year.

 

I've not explained that brilliantly I know but I'm struggling to put it into words!

[pem123 10]

 

I've not explained that brilliantly I know but I'm struggling to put it into words!

 

I think you explained it better than the average IR worker

 

Although I am dumb beyond belief when it comes to tax

[Jessica23 10]

The IR may not have set guidelines but the University has (Sheffield, not Hallam - although I imagine they have a similar policy). Anyway, the University rules are that full-time students can't work more than 16 hours per week, and if you get a job with the Students' Union they won't let you work more than that.

 

Of course, any other job and you can work all the hours you like. I think I was paying normal tax in my MA year because I was working 24 hours a week and earning about £12k.

[mrsv 10]

If you are working while a student, you do have a cap on untaxed earning. You can find out what this is using your tax code. If you have two jobs as a student, then you will automatically be taxed, but can normally claim a rebate on this, via the tax office.

[L-V-S 10]

Cheers all.

[sheffield* 10]

The IR may not have set guidelines but the University has (Sheffield, not Hallam - although I imagine they have a similar policy).

 

Yes, at Hallam it's 15 hours per week. Also, if you're an international student your visa may stipulate a certain amount of hours, and you legally aren't entitled to work more than that. I do believe that's just in term time though.

[timcobbold 10]

you can work fifteen hours without being taxed (apart from NI), anything over that is Income Taxed

[qazitory 10]

you can work fifteen hours without being taxed (apart from NI), anything over that is Income Taxed

 

Tax isn't worked out on hours, it's money. It's about £6k now you can earn without paying tax.

 

http://www.hmrc.gov.uk/rates/it.htm