School’s out, but payroll rules still apply

Are there any payroll rules we need to consider? Students are subject to the same income tax, national insurance (NI) and workplace pension rules as any other employee. In these circumstances, either no Income Tax may be deducted through payroll, or any tax deducted could ultimately be refunded by HMRC if they have overpaid. National insurance operates separately from income tax and depends on an individual’s age and earnings. Alongside payroll obligations, employers should remember that employment law rules continue to apply.