Top tax tips for working students

• If you have worked before or claimed Jobseekers Allowance, you should provide your new employer with a P45 form immediately; otherwise you will be taxed at 22% on all your income with no deduction given for your personal allowance. If you do not have a P45, ask your new employer for a P46
• You can currently earn up to £4,745 a year without being taxed. Beyond this amount, you will be taxed at 10% up to £6,765, and at 22% between £6,765 and £36,145. If you work during holidays and do not expect to earn more than £4,745, your employer should complete form P38(S), which allows your wages to be paid gross
• If you have earned less than the annual personal allowance of £4,745, you can reclaim any tax which you have paid during the year. Contact the Inland Revenue for a repayment claim form. You can find the telephone number of your nearest Revenue office to by looking under Inland Revenue in your local telephone book, or visiting the website, www.inlandrevenue.gov.uk
• If your earnings exceed £91 per week, you must pay Class 1 contributions, which stand currently at 11% of earnings and at 1% on earnings above £610 per week.
• If your total taxable annual income exceeds £4,745, you will have to pay tax on Jobseekers' Allowance and on interest from most savings accounts
• Leaflet IR60 on the Inland Revenue's website (www.inlandrevenue.gov.uk) has more information on income tax as it applies to students

ACCA also draws attention to the wider and longer term implications of rising student debt, including its effect on graduate entrepreneurship.

Chas Roy-Chowdhury added: “The future for graduate start ups, which represent the most dynamic business group creating high-growth businesses, looks increasingly uncertain.

“ACCA’s recent event on the subject, which was attended by representatives from the Government, banks, business support organisations and graduate entrepreneurs and the new National Council for Graduate Entrepreneurship, highlighted the fact that the student debt issue has to be addressed as a matter of urgency - for the benefit not only of the graduates themselves, but also for future UK employment and the economy.”