Summer is a busy time for many UK businesses — especially in hospitality, retail, tourism, and agriculture. Bringing in students or seasonal staff can be a great way to manage the increased workload, but it’s important to stay on top of your tax and payroll responsibilities.

Here’s a quick guide to what employers need to know before hiring temporary workers this summer.

Seasonal or student workers are typically:

• Hired for a short-term period (e.g., summer months)
• Students on a break from education
• Often working part-time or irregular hours

Even if they’re only with you for a few weeks, they’re still legally considered employees — and that means certain tax, NI, and employment rights apply.

Yes — almost always.

Unless the student is genuinely self-employed or working unpaid under specific rules (e.g., certain internships), you’ll need to:

• Add them to your PAYE system
• Issue a payslip
• Report their earnings to HMRC via RTI (Real Time Information)

Even if they earn below the tax threshold, you must report them to HMRC.

Students don’t get special tax rules just because they’re in education. Standard tax and NI rules apply:

✅ Income Tax: If their total annual earnings exceed the Personal Allowance (£12,570 for 2025/26), they’ll pay tax — even if they only work in summer.

✅ National Insurance: You only deduct this if their weekly pay exceeds the NI threshold (currently £242 per week for employees in 2025/26).

If they’re likely to stay under the threshold, you still need to process them correctly — but no deductions may be needed.

If you happen to be an owner-managed business adn the sole employee, you will also benefit by receiving an increased Employers Allowance.

You’ll need to collect:

• Full name, address, and date of birth
• National Insurance number
• Starter checklist (formerly P46) — especially if they don’t have a P45

This ensures you use the correct tax code and don’t over- or under-deduct.

Even short-term and student workers have basic rights, including:

• Minimum wage
• Holiday pay (accrued)
• Protection from discrimination
• A safe working environment

Make sure your contracts, hours, and working conditions comply with UK employment law.

❌ “Students don’t pay tax”
✔️ They do — if they earn over the personal allowance.

❌ “They don’t need a contract”
✔️ All workers are entitled to a written statement of employment.

❌ “You can pay them cash-in-hand”
✔️ Not unless it’s recorded properly and reported to HMRC.

At Llewellyns Chartered Certified Accountants, we support businesses with:

• PAYE setup and seasonal worker onboarding
• Payroll processing and RTI submissions
• Compliance with HMRC and employment law
• Advice on employment contracts and student hiring

We’ll ensure your summer hires are paid properly and your reporting is spot-on — so you can focus on running your business.

📞 Get in touch today if you’re hiring short-term staff this summer. We’ll help you stay compliant and avoid any costly payroll surprises.