Student Employees – Removal Of P38(S)

From 6th April 2013 HMRC will withdraw Form P38(s) for students employed during holiday periods.

Once all employers send PAYE information in Real Time students will be treated in the same way as all other employees and students starting work will need to complete P46 equivalent process.

This does not mean that students will pay more tax as they will have the same tax allowance as they would have done under P38(s), but it will be easier for employers and HMRC to establish when earnings exceed the allowance and tax becomes due.