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In response to a question, HMRC has provided the following statement concerning the way in which the September increase in the personal tax allowance will be applied to students for whom a current form P38(S) is in force.

“A new form P38(S)(2008)(2) is being introduced for use on or after 7 September which reflects the increased Personal Allowance of £6035. Employers may have students who have already declared that their earnings for the year will not exceed £5435. These declarations can remain in place until the end of the year.

If, following the introduction of the increased Personal Allowance, it becomes apparent that the student’s income will exceed £5435 but will not exceed £6035, they must complete a new P38(S)(2008)(2) or equivalent record.

Revised forms will be available from the Employer Orderline from 13 August and on the Revised Employer CD-ROM 2008 (August) Edition.”

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The UK Payroll News is sponsored by HRD & Payroll Solutions

Written by Ian Congreave - Payroll writer and lecturer

Filed under: P38(S) - Students on July 14th, 2008

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