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Reclaim tax if i have to pay high tuition fees?

Hi,

so i am going to be a summer intern at an IB. I will have to pay income tax. I have heard people saying one could get "money back in April", how does one do this and also does it matter if i will (same year - after the internship) be paying high tuition fees? In Germany one can deduct expenses for education from ones income, is this also the case in the UK?

Cheers, any help very much appreciated!

DerPumuckl :smile:

Reply 1

tknight7

1

DerPumuckl

Hi,

so i am going to be a summer intern at an IB. I will have to pay income tax. I have heard people saying one could get "money back in April", how does one do this and also does it matter if i will (same year - after the internship) be paying high tuition fees? In Germany one can deduct expenses for education from ones income, is this also the case in the UK?

Cheers, any help very much appreciated!

DerPumuckl :smile:

In the UK, you get a letter showing how much tax you have paid within the tax year. If you have been taxed when you shouldn't have been, or earned less than the benchmark (around £6000), then you fill out a tax refund claim, and then you get a cheque in the post.

In the UK, all 'Home' students pay the same fee for university. I'm not sure about internationals though, but i doubt that you claim against your fees!

Reply 2

hypocriticaljap

2

You pay tax on income over about £6000. You can't claim any of that back. Education isn't tax deductible.

Reply 3

DerPumuckl

OP

8

tknight7

In the UK, you get a letter showing how much tax you have paid within the tax year. If you have been taxed when you shouldn't have been, or earned less than the benchmark (around £6000), then you fill out a tax refund claim, and then you get a cheque in the post.

In the UK, all 'Home' students pay the same fee for university. I'm not sure about internationals though, but i doubt that you claim against your fees!

Thanks. So what is if i earn say 50k pounds pro rata? Do they tax me whatever the average tax is - say 25% - and then they pay me back because in a 3-month internship i got way less than the annualized rate?

Can UK students claim educational expenses on their tax? And what about educational expenses abroad (say a US university)?

Reply 4

Lindsey123

12

Your tuition fees won't be affected by your income or how much tax you pay.

Reply 5

DerPumuckl

OP

8

Lindsey123

Your tuition fees won't be affected by your income or how much tax you pay.

Yes i know. But will my tax be affected by how much i pay on fees? It would from the responses so far the answer is no. But thanks for the reply! :smile:

Reply 6

Quady

20

DerPumuckl

Thanks. So what is if i earn say 50k pounds pro rata? Do they tax me whatever the average tax is - say 25% - and then they pay me back because in a 3-month internship i got way less than the annualized rate?

Can UK students claim educational expenses on their tax? And what about educational expenses abroad (say a US university)?

Yes, thats how it works.

No, and I don't believe so.

Reply 7

Lindsey123

12

DerPumuckl

Yes i know. But will my tax be affected by how much i pay on fees? It would from the responses so far the answer is no. But thanks for the reply! :smile:

I believe income tax and tuition fees don't affect each other in the UK.

Reply 8

hypocriticaljap

2

You'll pay 40% on income over circa £38K. At the end of the tax year you'll need to claim back overpaid tax. You cannot claim any education expenses against tax.

Reply 9

Illusionary

19

DerPumuckl

Yes i know. But will my tax be affected by how much i pay on fees? It would from the responses so far the answer is no. But thanks for the reply! :smile:

There's no relationship between the amount of tax that you pay and university tuition fees.

In terms of the tax that you'll pay initially, the threshold below which you shouldn't ultimately have to pay any Income Tax is currently £6,475 for most people, though as you suggest you may find that you have to pay tax and then reclaim it later. However, if you're a student working only in holiday periods and expect your total annual income not to exceed this £6,475 'personal allowance', you can complete a form P38(S) (clicky) and give this to your employer in order to receive your pay without deduction of any Income Tax.

If you don't go this route, you can reclaim any overpaid Income Tax once you've left the job by completing a form P50 and sending this to your tax office along with a copy of the form P45 that you should receive from your employer once you're left. There's no need to wait until April to do this. Take a look at this section of the TSR guide to Income Tax and National Insurance for more information.

It's also worth pointing out that you'll have to pay 'National Insurance Contributions' (NICs) at a rate of 11% on your earnings in excess of £110 per week (though the rate drops to 1% above £844 per week). In this case, you can't reclaim NICs on the basis of your overall annual income, as the threshold applies for each pay period, rather than across the year as a whole.

Reclaim tax if i have to pay high tuition fees?

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