Will I be taxed?? - help!

So in my gap year I'm basically going to be saving from August 2016 until October 2017 (14 months). I've been offered a full time job which is 37.5 hours a week and about £7.50 an hour, although it's Waitrose so I would get the March bonus and seasonal premiums. It's already expensive to get there (annual travel card is over 2000 I think). So all in all, excluding extras, my basic pay would be £14,625 annually, or £16,875 for the 14 months. I know the tax threshold is £11,000, but because I'd be starting in August, having made less than £11,000 before the next tax year, will I be taxed or not? It's a really long journey and it won't really be worth it for me if I'm paying so much for travel as well as being taxed, but I'm not really sure how the system works because I've never had a job as an 18 year old (I'm 18 now). If you could help it would be so so useful, thank you! :smile:

Reply 1

claireestelle

22

Original post by elizahughes

So in my gap year I'm basically going to be saving from August 2016 until October 2017 (14 months). I've been offered a full time job which is 37.5 hours a week and about £7.50 an hour, although it's Waitrose so I would get the March bonus and seasonal premiums. It's already expensive to get there (annual travel card is over 2000 I think). So all in all, excluding extras, my basic pay would be £14,625 annually, or £16,875 for the 14 months. I know the tax threshold is £11,000, but because I'd be starting in August, having made less than £11,000 before the next tax year, will I be taxed or not? It's a really long journey and it won't really be worth it for me if I'm paying so much for travel as well as being taxed, but I'm not really sure how the system works because I've never had a job as an 18 year old (I'm 18 now). If you could help it would be so so useful, thank you! :smile:

If its comes to less than £11000 between august and april then you wont be, you would be paying national insurance though. (national insurance is if you earn over £155 a week so 8k a year)

Reply 2

Kieran1996

12

You won't be taxed from August 2016 to March 2017 (tax year 2016-17) as HMRC already know for sure you won't earn above the threshold (£11000).

But you will pay tax from April 2017 until October 2017 because as far as HMRC are concerned you will definitely be earning more than £11000 in tax year 2017-18 (I know you will leave in October 2017 but HMRC do not care, stupid I know). However once you leave in October 2017 you can ask HMRC for a tax refund - I'm assuming you'll be going to uni [returning to study in HMRC terms] so it'll be fairly simple and you'll get your tax back by March 2018 at the latest.

I am in a somewhat similar situation rn (on a gap year) but I am on a fixed term contract and I assume your contract with Waitrose is not fixed term?

(edited 7 years ago)

Reply 3

elizahughes

OP

14

Original post by claireestelle

If its comes to less than £11000 between august and april then you wont be, you would be paying national insurance though. (national insurance is if you earn over £155 a week so 8k a year)

Thank you!

Reply 4

elizahughes

OP

14

Original post by Kieran1996

You won't be taxed from August 2016 to March 2017 (tax year 2016-17) as HMRC already know for sure you won't earn above the threshold (£11000).

But you will pay tax from April 2017 until October 2017 because as far as HMRC are concerned you will definitely be earning more than £11000 in tax year 2017-18 (I know you will leave in October 2017 but HMRC do not care, stupid I know). However once you leave in October 2017 you can ask HMRC for a tax refund - I'm assuming you'll be going to uni [returning to study in HMRC terms] so it'll be fairly simple and you'll get your tax back by March 2018 at the latest.

I am in a somewhat similar situation rn (on a gap year) but I am on a fixed term contract and I assume your contract with Waitrose is not fixed term?

Yeah it's a permanent position and I will be going to uni, that's why I'm being so particular about the money, it's so expensive!! Thank you, info really helped :smile:

Reply 5

Kieran1996

12

Original post by elizahughes

Yeah it's a permanent position and I will be going to uni, that's why I'm being so particular about the money, it's so expensive!! Thank you, info really helped :smile:

Yup it is expensive! I don't train but I drive to work atm which is about £200 a month so I'm in a similar situation as you may be in, if you're living at home it should be affordable

Is there a reason you want to work? I'm guessing it's to save?

No worries, feel free to ask if you're not sure about anything else