David Jetuah, Accountancy Age, Wednesday 4 August 2010 at 10:00:00

Those in further education are paying too much tax because they are notfilling in forms exemptin them from income tax

Thousands of students with summer jobs may be working in the emergency taxband because they have not filled in the correct forms.

Full-time students do not have to pay income tax as long as they only workduring their holidays and earn less than 6,475 per year.

But they must fill in form P38(s), a document available from their employeror the HM Revenue & Customs website, to secure the tax break,thisismoney.co.ukreported.

Those who do not fill in the form usually end up being put on emergency taxcode (647L for 2010-11), leading to additional amounts of their income going tothe taxman.

Kelly Sizer, of the Low Income Tax Reform Group, says: 'Students who work ineither holidays or term-time will probably pay too much tax. If this applies toyou, make sure you claim a repayment.'

Further reading:

HMRC's student tax calculator