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Employing students in the summer break

Employing students in the summer break

Andrea Wulff

If you decide to employ students to assist with your staff needs over the summer, you will need to add them to your payroll and apply PAYE and NIC rules.
Students should be advised that they will pay tax and NIC if:
  • they earn more than £1,048 a month on average, and
  • pay NIC if they earn more than £190 a week from 6 April 2022 to 5 July 2022 and more than £242 from 6 July 2022 to 5 April 2023.
Students can also apply for a possible tax refund if they work for part of a tax year. 

Students who normally live and study in the UK but work abroad during the holidays will need to pay:
  • UK tax on anything they earn above their Personal Allowance, currently £12,570, and
  • National Insurance if they work for a UK employer.
If students work for a foreign employer, they will not need to pay National Insurance in the UK, but may have to pay contributions in the country they are working in.

Small business owners should also be aware of the employment allowance increase for small businesses which has risen from £4,000 to £5,000.

For assistance with payroll and employment please contact your local Moore adviser