If you employ students to help balance your staffing needs over the Christmas holidays, you will need to include them in your payroll and account for the usual PAYE and NIC rules.

Students should also be made aware that they will pay tax and NIC if:

  • They earn more than £1,042 a month on average, and
  • Pay NIC if they earn more than £166 a week.
  • Students can apply for a possible tax refund if they only work for part of a tax year.

Students who normally live and study in the UK but work abroad during the holidays will need to pay:

  • UK tax on anything they earn above their Personal Allowance, currently £12,500, and
  • National Insurance if they work for a UK employer.

If you work for a foreign employer you don’t need to pay National Insurance in the UK, but you might have to pay contributions in the country you’re working in.