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Tax Rebate For Working Students
Most students think they do not have to pay taxes. This is untrue and even if you are a working student, you still have to pay the Inland Revenue a certain amount of your earnings, if you earned over your tax-free allowance of 6,475 GBP for the tax year 2009-2010. However, as a student, you have one big advantage over the rest of the taxpayers. If you are a working student, chances are that you may be due a tax rebate, because you are less likely to earn below your tax-free personal allowance.
As a student, you'd have to work full time for almost a quarter of the year before you would use up all of you tax free allowance. Many employers will not consider that you are only going to be working a small part of the tax year and if you pay too much tax, the Inland Revenue is not going to contact you and inform you and your tax rebate.
If you live and study in the UK, but have worked abroad during the holidays, as far as taxes are concerned, you'll still count as a UK resident for that tax year and are liable to pay taxes in the UK on the money you made overseas that goes above your personal allowance. However if your employer abroad also taxes you and you aren't able to claim your tax back directly from the foreign authorities, you're probably entitled to claim a rebate back in the UK.
If you normally live in the UK and then work abroad for a UK employer you will be required to pay National Insurance while you are abroad. If you work abroad for a foreign employer you will not normally pay National Insurance in the UK, but you may have to pay foreign contributions. Sometimes these can count towards Social Security benefits back in the UK.
The year you decide to get a real full time job you will have only worked for part of a tax year, another thing that entitles you to ask for a tax refund. Remember that you can claim any tax refund for the last 6 years, so consider any summer jobs you might have had.
Students are among the poorest demographic groups as they have very little spendable income. If you are a working student, don't let the Inland Revenue take the little earnings that you make. Make sure to check if you are entitled to a tax rebate, and if so, go claim your money back.
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