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If you need an extra year of immigration permission due to adding a placement year to the course that was on your CAS*, you can apply either before or after (but not during) your placement.  You can make your application inside or outside the UK. If you apply within the UK, your application must be submitted before your current visa permission ends.   

To reduce the amount of Immigration Health Surcharge (IHS) payable as part of your application, you may decide to apply after your placement has ended as long as you have enough time left on your existing immigration permission. 

If you have added a year to your course hoping/planning to find a placement, you may want to delay making an application for the extra year of visa until you know you have secured a placement offer. This will prevent you paying for an extra year of visa that you may not ultimately use.  An extra year of the Immigration Health Surcharge would also be payable which will not be refunded if you do not undertake a placement and complete your course a year earlier than your visa expires.

*If you are able to change your course to a new one that is different from that on your CAS without changing your visa (as covered here). UKVI do not allow you to add and take a placement year later unless you have first obtained extra visa for the remainder of studies from an overseas visa application.

Before adding a placement year, you should ensure that you will not exceed the study time limits that apply to Student visas.  A five-year limit generally applies to study at bachelor’s degree level (this includes integrated foundation years or shorter pre-sessional courses and placement years).  Some degree subjects that generally require longer to complete are exempt from the time limit, e.g. Architecture.  UKVI may extend this time limit on an individual basis where there are exceptional compelling and compassionate circumstances.