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Summer’s Coming! Financial Information for impending graduates (2011/12)... Payment of student loans: loans become payable from the April after you graduate, or leave your course. You will pay 9% on everything that you earn over £15,000. If you are employed, this will be deducted directly from your wage slip, in the same way as tax and national insurance is paid. You may be entitled to Social Security Benefits: If you are unable to secure work or if the work you do find is part-time/ low waged you may be able to claim benefits from when your course officially ends. Job Seekers Allowance is a benefit paid to people looking for work. In order to qualify you need to be ‘available for and actively seeking work’. If you are intending to move onto postgraduate study you may also be eligible for this benefit during the summer period, providing that they can evidence that they are seeking work. You may also be entitled to Housing Benefit and Council Tax Benefit. However, please note that if you are under 35 years old your Housing Benefit will usually (some exceptions apply) be restricted to being paid on the basis of a single room rate. Council Tax: Once you are no longer a full-time student, you will be liable to pay Council Tax if you are living in a rented property. Depending upon your income, you may qualify for some Council Tax Benefit to assist you with paying your Council Tax. Housing: if you have signed a housing contract (private housing or university accommodation) you will be liable to pay rent for the duration of the tenancy agreement even if you vacate the accommodation early. You may be able to negotiate an earlier release date but remember to obtain any new agreements in writing. Tax and National Insurance: the basic tax allowance for all people under the age of 65 years in 2011/12 is £7475p.a You will pay tax on earnings over this amount. National Insurance contributions are payments which most working people make towards the National Health Service and to enable them to get entitlement to some social security benefits. For employed earners, contributions are paid as a percentage of income above a certain level. Self-employed people pay a set weekly rate .Someone who is unemployed or unable to work through sickness may have contributions credited to her/his national insurance record. If you are employed, you will begin to make National Insurance Contributions on earnings over £139pw Student overdrafts: Most student overdrafts have no fees whether you’re overdrawn or in credit, unless of course you exceed the overdraft limit. Ideally, you should aim to pay this off before the interest free period ends (it is therefore important to ask the Bank when this interest free period ends). If this is not possible, you should consider switching this to a Graduate Account which may give you a further one to three years of interest free credit. Charges will, however apply once the interest free period on the Graduate account ends. For more details visit the Money Saving Expert: http://www.moneysavingexpert.com/students/graduate-bank-accounts
Contact us if you have any further financial questions www.staffsunion.com/summerscoming