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Tax - TSR guide and questions thread

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Applying to Uni? Let Universities come to you. Click here to get your perfect place 20-10-2014
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    (Original post by cryptology)
    Hey,

    i had 2 jobs recently while at uni and even though they knew i was a student, i still got taxed, i wanted to find out how to get the tax money back as students are not meant to be taxed. Any advice would be great.

    Crypt.
    First of all, being a student has no effect on whether you should be paying Income Tax. The important factor is your level of annual income. If your income is above your tax-free 'personal allowance' (currently £6,475 per year for most people), you'll pay tax on the excess, regardless of your status as a student.

    Without more details of your employment I can't give you tailored instructions for how to reclaim any overpaid Income Tax, if you did indeed overpay. However, you can find a guide to how to reclaim for a variety of situations in my guide here, which you'll also find linked to in my stickied thread in this forum.
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    *bangs head against the nearest hard surface*
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    (Original post by sandettielightvessel)
    *bangs head against the nearest hard surface*
    It's very tempting to try to get the sticky in size 30 font for a day... :p:
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    Hi,

    I used to be a full time worker until September of last year, earning £16100 a year. Also this would be closer to £17k after the occasional overtime. Then as of Sept i went part time when i started uni, dropping my hours down to just below the tax threshold.

    Am i right in thinking that in April i should get a fair amount of tax back?
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    (Original post by Sean_M)
    Hi,

    I used to be a full time worker until September of last year, earning £16100 a year. Also this would be closer to £17k after the occasional overtime. Then as of Sept i went part time when i started uni, dropping my hours down to just below the tax threshold.

    Am i right in thinking that in April i should get a fair amount of tax back?
    If you've been employed continuously then you'll already have received any tax refund that you're entitled to, so I wouldn't expect you to receive anything further, I'm afraid. The 'Pay As You Earn' (PAYE) system automatically corrects the total amount of Income Tax that has been deducted from you earnings each time that you're paid.
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    Hi

    I started working for Tesco in July 2008. I'm a full-time student and the yearly wage (for the job) is/was well under the ~£6.5k limit. I completed a P45 at the time of interview but for whatever reason it took 2 months before HMRC were informed I wasn't earning enough to be taxed. In those 2 months I was taxed £56.80 and I'd like to know how I go about getting it back? I've checked HMRC website and it hasn't helped and I just sat on hold for ~15 minutes waiting to speak to somebody from HMRC, before getting bored.

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    Mitch.
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    http://www.thestudentroom.co.uk/wiki...vious_tax_year
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    (Original post by Mitch92uK)
    Hi

    I started working for Tesco in July 2008. I'm a full-time student and the yearly wage (for the job) is/was well under the ~£6.5k limit. I completed a P45 at the time of interview but for whatever reason it took 2 months before HMRC were informed I wasn't earning enough to be taxed. In those 2 months I was taxed £56.80 and I'd like to know how I go about getting it back? I've checked HMRC website and it hasn't helped and I just sat on hold for ~15 minutes waiting to speak to somebody from HMRC, before getting bored.

    Rep for help.
    Mitch.
    I see that Quady's already linked you to my guide, but to quickly summarise, if you were working during the months after July 2008 this will have been in a previous tax year. To reclaim any overpaid Income Tax, write to your tax office enclosing the form P45 that you should have received when you left the job and explaining that you want to request a refund. You can find contact details for your tax office here.
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    Thanks for that

    (Original post by Illusionary)
    I see that Quady's already linked you to my guide, but to quickly summarise, if you were working during the months after July 2008 this will have been in a previous tax year. To reclaim any overpaid Income Tax, write to your tax office enclosing the form P45 that you should have received when you left the job and explaining that you want to request a refund. You can find contact details for your tax office here.
    I'm still working at Tesco Illusionary, I'll finish sometime in early July. So when I leave and they return my P45 I shall write to them.

    Thanks!!
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    (Original post by Mitch92uK)
    I'm still working at Tesco Illusionary, I'll finish sometime in early July. So when I leave and they return my P45 I shall write to them.

    Thanks!!
    Could you clarify exactly what periods you've worked for Tesco (or any other employer) since 2008? You should be able to reclaim any overpayment from the last tax year (6 April 2008 to 5 April 2009) now, without having to wait until you leave your current period of employment. Each tax year is dealt with separately.

    As a point to note, you'll get a new P45 when you leave your current employment rather than having the same one returned to you. When you give a P45 to a new employer, you should keep Part 1A for your records on each occasion.
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    (Original post by Illusionary)
    Could you clarify exactly what periods you've worked for Tesco (or any other employer) since 2008? You should be able to reclaim any overpayment from the last tax year (6 April 2008 to 5 April 2009) now, without having to wait until you leave your current period of employment. Each tax year is dealt with separately.

    As a point to note, you'll get a new P45 when you leave your current employment rather than having the same one returned to you. When you give a P45 to a new employer, you should keep Part 1A for your records on each occasion.
    July 2008 - Present I've worked for Tesco on an annual salary of ~£2.5k
    I don't believe I have any part of my P45 .
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    (Original post by Mitch92uK)
    July 2008 - Present I've worked for Tesco on an annual salary of ~£2.5k
    I don't believe I have any part of my P45 .
    Ah, okay - that changes things a little.

    Could you check your last payslip before the end of the last tax year (likely from March 2009) and let me know what is shown as the 'tax code'? It may be that you've already received a refund of the tax that you paid initially. Once your P45 is processed by a new employer, they should be able to put you onto a tax code that gives you the correct personal allowance. The 'Pay As You Earn' (PAYE) system that's used to collect Income Tax (and National Insurance) from employees automatically corrects the total amount of Income Tax that you've paid over the year each time that you're paid. If your tax code is correct (likely "647L"), this should be the case for you. Your payslip may also show cumulative deductions for the year, which would be another way of checking this.

    For the current tax year, again check your tax code, to make sure that you're paying the right amount of Income Tax. If it's "647L" then it's most likely fine, but let me know if it's anything else.

    Finally, don't worry about not having received a P45 from Sainsbury's. You will only get one when you leave a period of employment, so you won't have had one from them given your circumstances. However, you should have received a P60 from them following the end of the last tax year, summarising your income from them during the year. You'll receive a P60 if you're employed at the end of the tax year. Again, keep hold of this as it's an important record.
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    whats the procedure for this, do they take the money straight out of your bank or do they send you a paper bill and then you pay it?

    what if the company folds, does it still have to be paid?
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    invoice
    payable whatever
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    (Original post by Illusionary)

    Could you check your last payslip before the end of the last tax year (likely from March 2009) and let me know what is shown as the 'tax code'? It may be that you've already received a refund of the tax that you paid initially. Once your P45 is processed by a new employer, they should be able to put you onto a tax code that gives you the correct personal allowance. The 'Pay As You Earn' (PAYE) system that's used to collect Income Tax (and National Insurance) from employees automatically corrects the total amount of Income Tax that you've paid over the year each time that you're paid. If your tax code is correct (likely "647L"), this should be the case for you. Your payslip may also show cumulative deductions for the year, which would be another way of checking this.

    For the current tax year, again check your tax code, to make sure that you're paying the right amount of Income Tax. If it's "647L" then it's most likely fine, but let me know if it's anything else.

    Finally, don't worry about not having received a P45 from Sainsbury's. You will only get one when you leave a period of employment, so you won't have had one from them given your circumstances. However, you should have received a P60 from them following the end of the last tax year, summarising your income from them during the year. You'll receive a P60 if you're employed at the end of the tax year. Again, keep hold of this as it's an important record.
    647L is the code on my payslip. I don't think I received the money back?
    I do have a copy of my P60.
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    (Original post by tinktinktinkerbell)
    whats the procedure for this, do they take the money straight out of your bank or do they send you a paper bill and then you pay it?

    what if the company folds, does it still have to be paid?
    Are you referring to Income Tax or Corporation Tax? In eaither case, you'll be sent a penalty notice by HMRC showing the penalty (you'll have 30 days to appeal) and requesting payment.

    In the case of a company that becomes insolvent and goes into liquidation, any outstanding liabilities to HMRC will be dealt with by standard insolvency procedures (and may end up going partly/wholly unpaid), but they won't in general become liabilities of the owners (shareholders) of the company.
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    (Original post by Illusionary)
    Are you referring to Income Tax or Corporation Tax? In eaither case, you'll be sent a penalty notice by HMRC showing the penalty (you'll have 30 days to appeal) and requesting payment.

    In the case of a company that becomes insolvent and goes into liquidation, any outstanding liabilities to HMRC will be dealt with by standard insolvency procedures (and may end up going partly/wholly unpaid), but they won't in general become liabilities of the owners (shareholders) of the company.
    im talking corporation tax

    i dont really understand your second paragraph, so if the company folds the late penalty might not have to get paid
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    (Original post by tinktinktinkerbell)
    im talking corporation tax

    i dont really understand your second paragraph, so if the company folds the late penalty might not have to get paid
    A corporation tax penalty is a liability of the company, not the company's owners. If a company becomes insolvent (i.e., is unable to pay its debts as they fall due) then there is a procedure known as 'administration' which can lead to the company being 'wound up' (basically, closing down) and any assets that it holds being used to pay debts in a specific order of priority. If there aren't enought assets to cover a penalty, then yes, it may go (wholly or partly) unpaid. In such circumstances, however, the owners of the company wouldn't recover anything from the company when it folds.
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    (Original post by Illusionary)
    A corporation tax penalty is a liability of the company, not the company's owners. If a company becomes insolvent (i.e., is unable to pay its debts as they fall due) then there is a procedure known as 'administration' which can lead to the company being 'wound up' (basically, closing down) and any assets that it holds being used to pay debts in a specific order of priority. If there aren't enought assets to cover a penalty, then yes, it may go (wholly or partly) unpaid. In such circumstances, however, the owners of the company wouldn't recover anything from the company when it folds.
    so we could fold the company and not have to pay?
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    (Original post by tinktinktinkerbell)
    so we could fold the company and not have to pay?
    There are circumstances when this could happen, yes, but I wouldn't recommend relying on this. For a start, if the company has any assets, these will likely be used to cover the penalty before you can have any claim on them (assuming that this is your company). For the sake of £100, it's not really worth having a company insolvency to your name.

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