Call us 0800 0523 555

Contact Us

*COVID-19 update: Many of our shops and offices are now open for face to face meetings with strict social distancing measures in place. We also offer telephone and video consultations for all new clients in order to discuss your needs. Find the latest COVID-19 information available for your business.

Employing Students During the Holidays

During the summer holidays we will need to employ some temporary staff to cover the extra working hours of our business. Someone has suggested we employ students, as they do not have to pay tax. Is this correct, and if so how do we do it?

If you employ students in the recognised vacation periods of summer, winter and easter, you can pay them without deducting PAYE tax, provided they meet certain conditions.

However, if you employ a student at any time other than their normal holiday periods (or if a student works for you both during and outside their holidays), then you should operate the normal PAYE procedures used for any other employee.

In order for you to do this each student must sign a form P38S which you can obtain from HM Revenue & Customs. Provided that the student's earnings remain below their Personal Allowance for the tax year, (currently £6,475) then they can be paid without deduction of PAYE tax.

However, you will still have to pay both employer and employee National Insurance if the earnings for each employee exceed the earnings threshold, which is set at £110 per week for the tax year ending 5th April 2010.

Call us today to make an appointment with your local office

Consultations available by telephone or video

0800 0523 555

Contact Us