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Tax - TSR guide and questions thread

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inbetweeners
Hi Im a 16 year old in school and i am now working coaching some tennis were i will be payed 32 pound a month. Just some questions will i have to pay tax and if so how much. I am a full time student in year 11.

Being a full-time student has no effect on whether you should be paying Income Tax (or National Insurance). Generally, everyone in the UK can receive a certain amount of income, known as their 'personal allowance', each year before having to pay any Income Tax. Currently, the 'standard' personal allowance is £6,475 for most people, which works out at just over £124 per week. :smile:
PercyChatsworth
You can earn £6,475 in the 2010/11 tax year before you have to pay tax. The tax year runs from 5 April 2010 to 4 April 2011.

Very close, but not quite. The 2010/11 tax year runs from 6 April 2010 to 5 April 2011. :smile:
so no tax then
Illusionary
Very close, but not quite. The 2010/11 tax year runs from 6 April 2010 to 5 April 2011. :smile:


Grrrr - I hate making mistakes!

No tax OP - unless you get lots of tips :p:
inbetweeners
so no tax then

Correct, though as I assume that you'll be an employee you should check the 'tax code' shown on your payslips to ensure that you're being taxed correct. If it's "647L" this is probably correct, but watch out for a "BR" code which would mean that you'd be taxed as though you have a nil personal allowance. If you do end up on a code that looks wrong, give your tax office a call and they should be able to arrange for it to be changed. You can find contact details for your tax office here. :smile:
im confused im not very good at this i am getting a cheque every month wich is of 32 pounds it will go straight in to my bank , do i need to tell tax people , are you sure they wont tax it. please can you explain simpler . Whats a BR code thanks
inbetweeners
im confused im not very good at this i am getting a cheque every month wich is of 32 pounds it will go straight in to my bank , do i need to tell tax people , are you sure they wont tax it. please can you explain simpler . Whats a BR code thanks

You probably don't have anything to worry about. :smile:

When you're paid, your employer should be operating a system called 'Pay As you Earn' (PAYE) which is used to collect Income Tax (and National Insurance, which is another form of tax on income) from employees' pay. A 'tax code' is a way of communicating the level of 'personal allowance' that should be applied when calculating tax deductions, as not everyone gets the same allowance for various reasons. A "BR" code stands for "basic rate", indicating that basic rate tax (at 20%) is deducted from all of your income, without any personal allownce.

You should receive a payslip from your employer (assuming that you will be an employee) each time that you're paid, and among other things this will state the tax code that's being applied to calculate the amount of tax (if any) that's deducted from your pay. For now, I'd suggest that you just check the code on your first payslip, and if it's not "647L" (which indicates the standard personal allowance of £6,475) then ask again and we can help you further.

You can see a more detailed explanation in the guide that I've written for the TSR wiki here, if you're interested. :smile:
ok well my tennis instructor said i dont need to give him my number so is that ok
inbetweeners
ok well my tennis instructor said i dont need to give him my number so is that ok

I'm not sure what number you're referring to here, sorry.
lee_91
hi, i have a casual contract but have recently been promoted.
some months i will earn £500+, and others < £100

so, annually i do not earn above the treshold for NI but on a monthly basis i have twice exceeded 1/12 of it.

should i be paying NI in the months i exceed to monthly threshold or should i get a rebate as i do not earn enough annually.

i have looked up the figures but do not have them to hand...i u need to no more about my situation please ask

all help appreciated...lee

As mentioned above, the thresholds for National Insurance apply for each pay period rather than annually as is the case for Income Tax. As an employee, if you earn more than £110 in a week, or £476 in a month (2010/11 rates), then you'll have NI deducted at a rate of 11% on the excess over this threshold. You can't claim a refund of NI on the basis of your overall annual income being below the equivalent (scaled-up) annual threshold.
that card i got when i was 16 about working
inbetweeners
that card i got when i was 16 about working

Your National Insurance number card, perhaps?


If you're going to be their employee then query this with your instructor, as I would usually expect them to need this. You might find this helpful, from direct.gov: http://www.direct.gov.uk/en/Employment/Understandingyourworkstatus/Workersemployeesandselfemployment/DG_10027916
They said he didnt need it ,so is that ok because he said he didnt need it because i wont earn past that amount
inbetweeners
They said he didnt need it ,so is that ok because he said he didnt need it because i wont earn past that amount

In terms of the amount of Income Tax and National Insurance that you'll be paying it's probably fine, though I'm a little worried that you're not going to receive proper records of your earnings, in the form of payslips (and a P45 when you leave work). Check that you will be getting these, as you're legally entitled to (and you're also required to keep these records yourself).
if i dont get a payslip could i get done for tax evading . Hes giving it to me like cheque in hand everymonth why do i need the earning records. I didnt get records for a paper round or when i worked in a chinese. This is only a 2 hour a week job so is it important
right to get this straight no money will be taken from me?
so yep last thing i get it every month in a cheque so should i keep bank statements as reference if i dont get a payslip. But im sure i wouldnt have to pay tax though because im earning below the tax amount thanks
No money should be taken from you, but the documentation that you receive depends on your employment status, which depends on the precise arrangements of your employment. If you're a 'worker' (or freelance) then you don't have a right to payslips, but if you're an employee then you do. I'd suggest reading some of the information from direct.gov here, but I would emphasise that you really shouldn't worry too much about this. I'd just suggest having a quick word with your instructor to confirm the arrangements. :smile:
well he said im a helper who will get paid, i will check with him but im not evading tax
inbetweeners
well he said im a helper who will get paid, i will check with him but im not evading tax

I didn't mean to imply that you were! :smile:

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