Student opt-out ruled out

From next April Students who do holiday work will have income tax and national insurance deducted from their wages. The government is scrapping a student opt out/exemption (P38S) for Pay As You Earn (PAYE) from 6 April 2013.

Bad news for students and a new scenario for employers who must treat students in the same way as all other employees for income tax and national insurance contributions (NICs) purposes.