Employing Students

Confused about employing a student?

Are they subject to Tax and National Insurance?

Employing students has always been a bit of a grey area.

If a student is employed to only work for holiday periods, Easter, summer and Christmas, HMRC will issue a tax code to make the student exempt from paying tax even if they earn over the tax threshold in a working week/month.

Under these circumstances students will remain tax exempt until the annual tax threshold is reached.

There are no special rules for National Insurance

National Insurance contributions are deductible when the employee primary national insurance threshold and employer secondary national insurance threshold  are reached.

Students working in the term time and the holiday periods

There are no special rules for students working in term time and holiday periods. They are subject to tax and national insurance deductions just like any other employee.

If a student has 2 jobs then they should contact HMRC to get a tax code for their second job.

Depending on the gross amounts they earn at each job HMRC may offer to issue a split tax code to spread their personal allowance across both jobs.