Student Jobs Tax Guide UK (Working While Studying 2026)

Do Students Pay Tax? (Personal Allowance Applies)

Students are not exempt from income tax — you pay tax on the same basis as any other employee. The key principle is that you have a Personal Allowance of £12,570 (2026/27) that you can earn tax-free each tax year (6 April to 5 April). If you earn less than this across all your jobs in the tax year, you should pay no income tax. If you earn more, you pay tax at 20% (basic rate) on the excess. The issue many students face is that the Personal Allowance is spread across the full year, but you may only work during term time or summer holidays. If you earn, say, £5,000 in a summer job over 3 months, your employer's payroll system may assume you will earn that amount every month of the year — meaning no tax is deducted. But if you earn £5,000 in a month and then stop, the payroll system may apply an emergency code and deduct tax that you should eventually get back. You are not taxed on the total you earn in a week or month — the PAYE system calculates tax based on your cumulative earnings from 6 April. So if you start working in June after earning nothing in April and May, your first pay packet could have little or no tax deducted because your unused Personal Allowance from earlier months is carried forward. If tax is deducted in error (common for students), you can claim it back.

When You Need to File a Tax Return as a Student

Most students do not need to file a Self Assessment tax return. HMRC collects tax through PAYE automatically, and any overpayment is refunded through your tax code or by cheque. However, you must register for Self Assessment and file a return if: you are self-employed and earned more than £1,000 (the trading allowance) in the tax year; you receive untaxed income over £2,500 (e.g. rental income from a property you own); you have capital gains above the annual exempt amount (£3,000 in 2026/27); you are a partner in a business partnership; or you have foreign income that is not already taxed. If your only income is from a part-time job and HMRC collected the right amount through PAYE, you do not need to file a return. If HMRC sends you a Notice to File a tax return, you must comply even if you think you do not owe tax — late filing carries a £100 penalty. Students who are also trustees or company directors may also need to file. If you are unsure, check HMRC's online tool "Check if you need to send a tax return" on gov.uk. For more on the process, see our Self Assessment guide.

Getting a Tax Refund If You Overpaid

Students commonly overpay tax because they work irregular hours, start a job mid-year, or are placed on emergency tax codes. If you believe you have overpaid, you can claim a tax refund from HMRC. The easiest way is through your Personal Tax Account on gov.uk, where you can check your earnings and tax paid for the current and previous 4 tax years. If you are due a refund, you can claim it online. Alternatively, call HMRC's Income Tax helpline (0300 200 3300). If you have stopped working and do not expect to work again in the tax year, you can complete form P50 to claim your refund immediately. If you are still working but overpaying because your tax code is wrong, HMRC will adjust your code to refund the overpayment through future payslips. Common reasons students overpay: starting a job in the summer after earning nothing earlier in the tax year means your unused Personal Allowance is not applied; being put on emergency tax code (week 1/month 1 basis); earning multiple small amounts from different jobs that each assume the full Personal Allowance; and not providing a P45 or starter checklist to a new employer. Check your tax code on your payslip and in your Personal Tax Account. If it includes "W1" or "M1", you are on emergency tax and should contact HMRC to have it corrected and claim any overpaid tax back.

Student Loan Repayments Through PAYE

If you have a student loan (Plan 1, Plan 2, Plan 4, or Plan 5), repayments are automatically deducted from your wages through PAYE once your earnings exceed the repayment threshold for your plan. For 2026/27, the thresholds are: Plan 1 (pre-2012, Scotland pre-2007): £24,990 per year (£2,082.50 per month); Plan 2 (2012–2023 England/Wales): £27,295 per year (£2,274.58 per month); Plan 4 (post-2007 Scotland): £31,395 per year (£2,616.25 per month); Plan 5 (post-August 2023 England/Wales): £25,000 per year (£2,083.33 per month). You repay 9% of your earnings above the threshold (6% for postgraduate loans). If you have multiple jobs, deductions are taken from each job separately based on earnings from that job — meaning you could repay more than you should if each job is below the threshold individually but combined they exceed it. In this case, you can apply for a refund at the end of the tax year. Your employer starts deducting repayments once you earn above the weekly or monthly threshold in a single pay period. For students earning below the annual threshold but having deductions taken (e.g. due to a high-earning summer job), you can claim a refund from the Student Loans Company (SLC). Interest on student loans is based on the Retail Price Index (RPI) plus a variable margin depending on your plan and income.

Apprenticeships and Tax Rules

Apprentices in the UK are treated as employees and have the same tax and National Insurance rules as other workers. You receive the Apprentice National Minimum Wage (£6.40 per hour in 2026/27 for apprentices under 19 or in the first year of their apprenticeship). Apprentices aged 19 or over who have completed their first year are entitled to the full National Minimum Wage for their age group. Like all employees, you have a Personal Allowance of £12,570 — you pay no income tax on earnings below this. You also pay Class 1 National Insurance on earnings above £242 per week. However, apprentices may have lower NI contributions if they earn below the Lower Earnings Limit. If you are on a degree apprenticeship (combining work with university study), your earnings are taxed the same way as any other employment. However, your university tuition fees are paid by your employer and the government, and do not count as a taxable benefit. You do not pay student loan repayments unless you have taken out a separate student loan (most apprentices do not need to). Apprentices aged under 25 may also qualify for Housing Benefit or Universal Credit top-ups if their wages are low. See the National Minimum Wage guide for current apprentice rates.

Working During Holidays and Summer Breaks

Many students take on holiday jobs, summer internships, or temporary work during university breaks. The tax rules are the same as for any employment — you are entitled to the Personal Allowance, and you only pay tax on earnings above £12,570 in the tax year. If you work only during the summer and earn, say, £4,000, you should pay no income tax. However, because your employer's payroll system applies your Personal Allowance evenly across the year, you might see no tax deducted during the summer if you have not used your allowance earlier in the tax year. If tax is deducted (because your weekly or monthly pay exceeds the proportional allowance), you can claim a refund. Tips and gratuities earned in hospitality or tourism jobs are taxable — your employer should report them through PAYE. Self-employed work (e.g. freelance photography, tutoring, gig economy) — if your self-employed profits exceed £1,000, you must register as self-employed with HMRC and file a Self Assessment tax return. Work experience and internships that are unpaid are generally not taxable, but if you receive expenses or a salary, normal tax rules apply. Keep a record of all earnings and tax deducted so you can check your tax position at the end of the year. For more on self-employment, see our Self-Employment Tax guide.

FAQs

Do students pay National Insurance?

Yes, if you earn over £242 per week (2026/27). If you earn below this in a full year but above it in one week (e.g. during summer), you still pay NI for that week. You can claim a refund of NI if your total annual earnings stay below the annual threshold.

Can I work full-time during summer without paying tax?

Yes, as long as your total earnings for the full tax year (April to April) are below the Personal Allowance of £12,570. A summer job earning £6,000 should attract no income tax, though you might still pay National Insurance if your weekly pay exceeds £242.

What tax code should a student have?

The standard tax code is 1257L if you have one job and no other complications. If you start a job mid-year, you should still get 1257L. If you see W1 or M1, you are on emergency tax — contact HMRC to correct it.

Do I pay tax on a scholarship or bursary?

Scholarships and bursaries for tuition or maintenance are generally tax-free if you are a full-time student. However, if the scholarship is from an employer or is essentially payment for work, it may be taxable.

What if I work in a different country during the holidays?

UK tax rules apply to UK residents on their worldwide income, but many countries have double-taxation agreements. You typically pay tax in the country where you work and may need to report foreign income to HMRC. Seek professional advice for cross-border work.