Below follows the GSD’s reply to the Government's statement on the Student Taxation:

In his press release today the Minister for Taxation has asserted that there ‘has been no change in the way the  Tax Office applies the student income exemption’ and furthermore that the issues students had been facing  had ‘no connection to any Budget measures’.  

Roy Clinton MP the GSD Shadow Minister for Public Finance stated the following:  

“The Minister should first of all note we requested clarification from the Income Tax Office (“ITO”) and not  himself. He may also wish to look at the Guidance notes issued by the Income Tax Office with the PAYE tax  tables for 2024/25 which reads in respect of students:  

‘Students with an assessable income not exceeding £11,450, are exempt…’  

And compare it to the guidance issued for 2023/24 which reads:  

‘Students who are employed are exempt…’  

It is evident that the Income Tax Office had an intention to implement the Minister’s Budget measures for  2024/25 contrary to the Minister’s assertions that there was no connection to the tax issues student were facing.  We have also seen correspondence from the ITO to that effect.  

Whereas I welcome the Minister confirming that nothing should be changed by the Income Tax Office it is  self-evident that there was clearly an attempt by the ITO to implement the Budget measures he announced  without any legal backing.  

It is also clear the Minister is wrong in saying this confusion has nothing to do with the Government’s policy  changes announced at the budget. The opposite seems true. This confusion again could have been avoided if  a Finance Bill had been introduced at the Budget.”