Correction to information published in the Employer Bulletin about student tax codes

In the February 2008 edition of the Employer Bulletin, we answered questions about the tax treatment of student employees. The answer to the question below was incorrect in its advice about forms P14. We are sorry for this and will also be printing a correction in the next edition of Employer Bulletin.

What do I do where a student who works in the holiday under P38(S) procedures leaves and returns during term time?

The correct answer is:

If the student has worked in the holidays under the P38(S) procedures and then, after a break, takes a new job with the same employer in term-time, he/she should complete form P46 with a tick against Statement B to reflect that he/she has worked previously in the tax year.

Emergency tax code would apply on a week 1 basis.

Where Statement C is completed tax code BR cumulative should be used in line with PAYE Regulations 49(2), on earnings in this employment only. In all cases 'the tax code used' field should be completed.

At the year end it would be helpful if the employer could make a P14 report in respect of the period of employment (ie two P14s - one for each job).