Planning On Employing A Student This Summer?

The summer holidays are looming and now is the time when a lot of business owners start asking family and friends if their student offspring fancy a couple of months’ work during the holidays.

However, a lot of people believe that because most students won’t be earning enough to pay tax then it is pointless adding them to the payroll for the short space of time they will be with the company.

Unfortunately, since the introduction of RTI, student workers should be processed in exactly the same way as your permanent employees.

This means that you will have to complete a starter checklist for them and if you are unable to get this completed in time to run the first payroll then you need to complete one of the following statements:

A) This is their first job sine 6 April 2014 – Apply tax code 1000L.
B) They have had another job but this is currently their only job – Apply tax code 1000L week1/month 1.
C) They currently have another job – Apply tax code BR.

If your student worker is under 16 years of age then don’t forget that there will be no Employers NI to pay as they are not liable for National Insurance contributions.

Vikki

Did You Know?
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