Llanelli small businesses face summer Olympics challenge, warns expert

Some 18,327* students are expected to look for temporary work across Wales this summer and with London 2012 adding more pressure to employers’ holiday rotas, a local tax specialist is warning local businesses not to skimp on the paperwork.

Roger Bowen who runs TaxAssist Accountants in Llanelli said: “Small firms across Llanelli will be taking on students throughout this summer and with the London Olympics putting even more pressure on employers’ summer holiday rotas and work schedules, it could be tempting to pay workers cash in hand to cut costs and avoid paperwork. But employers who don’t comply with employment law run the risk of both civil penalties and criminal convictions.”

Roger said that if a student’s income was more than £107 per week; employers must account for National Insurance, complete forms P11 and P14 for them and include them on their P35. However, they could earn up to £144 per week before any National Insurance or tax had to be accounted for.

But provided they were in full-time education, only worked during the holidays and their total income was less than the personal allowance, students could apply for an exemption from being taxed.