Students Working During Holidays – HMRC change of mind on procedures requiring a new tax codeWednesday, April 7th, 2010
Following extensive consultation during 2008, HMRC announced that new procedures would be introduced from April 2011 for simplifying the current P38(S) procedures for students earning less than the personal allowance during a tax year. The new procedures would have involved the introduction of a special tax code that would only deduct tax once earnings exceeded the personal allowance.
In the latest Notes for Payroll Software Developers, HMRC has announced that the work involved to make this change possible will not now happen and alternative options are to be explored with stakeholders as to how simplification can be achieved without the need for a specific student tax code.
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