Do Students Pay Tax on Income?

If you’re a student, you have to pay tax on your income whether it’s through employment or self-employment. 

 

The good news is that everyone has a Personal Allowance, which for the tax year 2021/22 is £12,570. This means that you pay zero tax on the first £12,570 you earn, although you do still need to submit a self-assessment tax return if you’re self-employed (if you’re employed, your employer will sort this for you). 

 

If you don’t have a job but make money selling a few items online, such as through Etsy or eBay, you have a trading allowance of £1,000 per tax year. In other words, if you occasionally sell things like clothes or gifts you make yourself and they come to under £1,000 a year, you don’t have to do anything. If you exceed the limit, you need to register as self-employed and file a tax return. 

Need help with your tax? Call our Yorkshire office on 01482 235575, our London office on 0207 885 0605, or fill in the contact form below.