E4S: Students should be cautious about tax

A firm has advised that students who plan to take summer jobs should take extra care when analysing their tax rates.

Employment for Students (E4S) has pointed out that confusion may arise due to summer workers being put on emergency tax codes.

It also added that students are charged according to the longevity of their position, so summer employees could lose out if it is not made clear that their jobs are temporary.

Managing Director for the company, Chris Eccles, said: 'Any student taking a job this summer should be aware that they can potentially pay too much tax. As it can take quite a while to reclaim any overpaid tax, it is far better to steer clear of this situation.'

Mr Eccles pointed out that such issues can be avoided by filling out the P38(S) form, Recruiter reported.

Prime Minister Gordon Brown is set to raise the minimum wage for 18-21-year olds from £5.52 to £5.73 in October this year.