Advice Hub

June 5, 2011
 

Taxes For Students

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Written by: Kyle Raffo
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Taxes

Taxes are a compulsory contribution to state revenue, levied by the government on workers’ income and business profits or added to the cost of some goods, services, and transactions. Students are generally affected by the three following types of Taxes:

Council Tax

Council Tax helps pay for local services like policing and rubbish collection. Council Tax applies to all domestic properties, whether owned or rented. How much you pay is based on where you live, as well as the value of the house and who lives in it. However, as a student you may be exempt or pay less tax depending on your situation.

Students who are enrolled in a full-time education course may get a reduction on Council Tax. To recieve this reduction you will need to get a certificate from your uni/college proving that you are a full-time student; this may need to be forwarded on to your local council.

Also if you are living with someone who is not a student, you could get a single-person discount of about 25%. However, if you live in a Student Halls of Residence or if you live in a private flat where everyone is studying full time; you may not have to pay any council tax at all.

National Insurance

National Insurance is used to pay for the Jobseeker’s Allowance, Incapacity Benefits and your Retirement Pension if/ when you require them. If you earn more than £87 per week you are required to pay your National Insurance, this also includes post-graduate students who are teaching/demonstrating.

The National Insurance contributions are deducted from your pay, however, if you are under 16 or your are a full-time student, then you will not have to make any contribution to National Insurance .

Income Tax

The government collects Income Tax; this is calculated on your earnings from your job, the more you earn the more you will have to pay. However, If you earn less than £6,475 a year then you are not required to pay any tax at all. If you have earned less than the £6,475 yet you find you still have been paying taxes, you may be able to reclaim it back from Inland Revenue using a tax rebate form at the end of the year.

 





 
 

 
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