Working casual jobs as a student gets you that much needed cash; but it also gets you paying taxes. The UK tax system is pretty straightforward, but can be complicated if you work part-time and for more than one employer.
Most students are taxed on the PAYE (Pay as you earn) scheme, which is designed to deduct the taxes you owe with each pay. This way you won’t end up owing a huge amount of tax at the end of the tax year. But the PAYE system does not take into account periods of unemployment. Income tax is calculated at a rate that’s only right if you work the full tax year on the same pay rate.
If you only work casually to supplement your studies, your annual income may drop to a lower tax bracket and you can end up having paid more taxes than you actually had to. You are then entitled to receive a tax rebate for the amount that was overcharged.
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