Don't pay students with cash
BUSINESSES have been warned not to pay students "cash in hand" this summer, as they could face civil penalties and criminal convictions.
Figures released by UCAS show more than 58,000 pupils will seek temporary work across Surrey during the holidays, but accountant Alan Chesterfield has warned businesses not to "skimp on the paperwork".
Mr Chesterfield, who runs TaxAssist Accountants in Dorking, said: "Small firms across Surrey will be taking on students this summer.
"But with the Olympics putting even more pressure on employers' summer holiday rotas and work schedules, it could be tempting to pay workers cash-in-hand.
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"These employers who don't comply run the risk of civil penalties and criminal convictions."
Mr Chesterfield said if a student's income is more than £107 per week, employers must account for National Insurance, complete P11 and P14 forms and include them on their P35.
Provided students are in full-time education, only worked in the holidays and total income was less than the personal allowance, students can later apply for a full tax rebate.
Mr Chesterfield added: "If these conditions apply, ask your employee to complete form P38."