HM Revenue & Customs (HMRC) is reminding students that they may not need to pay income tax on their earnings, if these are below their Personal Allowance for the year.

For any student planning to work over Christmas, if they expect to earn less than £6,475 in the tax year to 5 April 2010 and complete a form P38(S) at the beginning of employment – they will be entitled to receive their money tax free.

Students can find all the information they need at Direct.gov.uk/studenttaxadvice.

Furthermore, students who have worked part-time throughout the year, and think they may have paid too much tax, could be eligible for a cash refund. They just need to use the student tax calculator on the HMRC website (http://www.hmrc.gov.uk/calcs/stc.htm).

According to HMRC, three out of every four students take paid work, and if they have worked part-time during term-time, or intend to get a temporary Christmas job, HMRC wants to help them to get the facts about tax right so that they don’t pay more than absolutely necessary on their hard-earned cash.

Jane Frost, Director of HMRC Individuals Customer Directorate, said:

“Before starting any vacation job, it’s a good idea to make sure you know about tax.

“Making sure your tax code is right from the start of your paid employment can save you money and is good training for life after graduation. We want to help students understand how the tax system works so they don’t pay more than they should and also get back what is due.”