If you are thinking of temporarily employing a student over the summer holidays it’s important to note that under Real-Time Information (RTI) the procedure for employing students has changed, and the P38(S) form is no longer valid.
If you employ students you must treat them, for payroll purposes, in exactly the same way as any other employee in that they must be added to your payroll as normal (they must provide either a P45 or P46) and details need to be submitted to HMRC.
If you have previously used the P38(S) process for students there is an explanation of the specific steps to be followed under the new RTI system on the HMRC website: http://www.hmrc.gov.uk/payerti/employee-starting/special-situations/students.htm#1 or contact Sue Stephens for more information.
When you operate PAYE in real time (for most employers this is from 6 April 2013), the P38(S) process is no longer available.
It might be a good idea to bring this change to the attention of any future students you employ during the holidays.
For any further information or advice on payroll matters please contact Sue Stephens