Money Matters
Part of the legislation that heralded the introduction of the Student Loans Scheme in September 1990 also took most students who are in full time education out of the benefit system completely. This means that most students are not allowed to claim housing benefit or income support for the duration of their course.
There are certain students who can claim, these are:
A single parent who has a child under 16
A student aged over pension age
Some students with a disability
On placement, you may be entitled to some other benefits and other financial support. Overseas students working in Britain are unlikely to be eligible for any benefits and if you or your family claim, it could affect your right to stay in the UK.
Tuition Fees
Whilst on placement you will still have to pay course fees. You will need to complete the Student Loan form PR1, there are separate sections if you are on a paid or unpaid placement. You may face difficulties if you fail to apply to your LEA well in advance of your placement.
For more information about paying fees when on placement click here.
Student Loans
The Student Money Service strongly advises you to take out your student loan entitlement in a placement year, think of it as an "insurance" against future need. If you don't require it immediately, deposit the money in a savings account which pays interest greater than the loan interest. Remember, the maximum student loan is around £300 less for final year students. Check that your department has advised the Registry of the firts day of your placement. IF the Registry has not informed the SLC of the actual date, the first instalment of the Loan will not be paid until the first day of the University of Bath term.
Income Tax
Income Tax is paid on all taxable income and is worked out for the tax year, which runs from 6th April to 5th April each year. If your income is less than your combined tax allowances and reliefs in any tax year, you will not have to pay Income Tax. For information on tax allowances, contact the Student Money Service on 01225 38 6968
Your employer will deduct the tax before paying you. You may be able to claim back all or part of the tax you have paid. If you earn less than your tax-free allowance in the tax year (April to April) you will be able to claim back all the tax you have paid.
You should usually claim back your tax after the end of the financial year by submitting a P60 and a P45 (you will need to supply a covering letter requesting the Inland Revenue to consider the possibility of a tax refund). However, if you can confirm to the tax office that you are not going to receive any further taxable income before April, you can request a P50 form and submit your P45 issued by the employer at the end of employment in order to receive your tax back for your placement.
Websites:
www.studenttaxadvice.org.uk
www.inlandrevenue.gov.uk/students
Tax abroad and UK tax on earnings overseas
Each country has its own method of dealing with the earnings of non-residents. Overseas earnings are liable to UK tax in most circumstances other than complete absence from the UK for a whole tax year.
It may be the case that you will have to pay tax both abroad and in the UK, depending on the tax laws and treaties between the two countries. Most countries do have arrangements so that you only have to pay tax once but we advise that you check the facts before you go.
You can get details from the Revenue Authorities of the countries involved. The UK Inland Revenue Office may be able to help, or you can go to the Student Money Service here on campus in Bath.
National Insurance
National Insurance contributions give entitlement to some social security benefits known as contributory benefits. If you are earning in excess of £95 per week you will have a percentage of your wages deducted by your employer to pay National Insurance contributions. These contributions will make it more likely that you will be able to receive certain benefits in the future. Both you and your employer make contributions and the percentage varies according to your earnings. You can expect to pay 10% and your employer will pay 12.2%
If the firm you work for has an occupational pension scheme and you are part of this, you may be able to pay a lower percentage. However, the contribution to the company scheme and NI is likely to be higher than NI alone. Retirement benefits earned in one year of contributions to a company scheme are unlikely to be high: check carefully to see whether joining the company scheme will be worth while, as you will be able to "opt-out" if you wish.
If you are financed by an LEA grant whilst on placement, you will not have any tax or National Insurance to pay.
Student Money Service
If you have any financial trouble at all whilst away on placement then you can go to, or call, the Student Money Service here on campus in Bath. They offer confidential help and advice on issues such as budgeting, debt management, negotiations with LEAs and banks and help in maximising income.
The Student Money Service also produce a leaflet specifically for placement students - remember to pick one up before you leave (also available online via the SMS webpages).
If you are having financial difficulties before you go, then don’t let the problem escalate – go and see the Student Money Service as soon as you can.
Student Money Service
Wessex House 2.33
01225 38 6968
studentmoney@bath.ac.uk
Access to Learning Funds (formally hardship funds)
The Access to Learning Fund is administered by the University and exists to help students with financial difficulties. The amount available is limited and priority will be given to students with exceptional needs e.g. single parents who require assistance with child care, mature students with dependants, emergency expenditure etc.. Money from the fund is available to UK undergraduate students, including placement students. Undergraduate students must apply for the full amount of Student Loan available to them before they can be considered. You can apply for part of this fund at any time, but please be aware that administrators of these funds are not very sympathetic to situations that could have been sensibly foreseen. Contact one of the advisors at the Student Money Service for advice if you are in any doubt about your funding before you fully commit to a placement.
International Awards
It is possible for you to use your placement as an opportunity to study abroad in a European University. There are exchange agreements between our University and others in Europe so that it is still formally recognised as part of the degree. The scheme is called SOCRATES. If you choose to do this, you may be able to receive a supplement to your LEA grant to contribute to the extra costs arising from studying abroad. This award is not automatic but to apply for it, or to find out more details contact the Study Abroad Administrator 01225 386766