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Tax - TSR guide and questions thread

It's separate - you pay NI from your wages, but you pay council tax whether you are earning or not.

Emergency tax will only be a couple of months hopefully, but yes, I think you have to wait until the end of the fiscal year.

Nope, you pay the same amount of council tax and you can't claim. Of course, whether your housemates are nice enough to share the discount (mine did) is a different matter.

Any more help, quote me :smile:

Thanks, that's what I was worried about. So looks like I will have to pay the majority of the council tax until they graduate and are no longer exempt then? Although one flatmate is my sister, so she may pay some towards it, fingers crossed!

Still stuck with the tax on my wage slip though. First deduction simply says 'Tax Paid', which is the huge amount they've deducted, and further down it says 'National Ins D', which is only £40.00, and they've taken both off. So what's the 'Tax Paid' bit if it's not NI?

Thanks for your help :smile:

Reply 1181

Lord Jon

21

Original post by rainbowfluff

Thanks, that's what I was worried about. So looks like I will have to pay the majority of the council tax until they graduate and are no longer exempt then? Although one flatmate is my sister, so she may pay some towards it, fingers crossed!

Still stuck with the tax on my wage slip though. First deduction simply says 'Tax Paid', which is the huge amount they've deducted, and further down it says 'National Ins D', which is only £40.00, and they've taken both off. So what's the 'Tax Paid' bit if it's not NI?

Thanks for your help :smile:

That would be your Income Tax.

National Insurance (NI) and Income Tax is deducted from your wages/salary.

Council Tax is paid separatley to your Local Council. :smile:

Emergency tax is often a huge amount but can be claimed back after you recieve the correct tax code.

Reply 1182

ian.slater

12

Original post by rainbowfluff

Ok, first off is probably the most stupid question, but what is the tax that comes out of your wages? Is this council tax, or do you have to pay that separately yourself?

I've just started a new job, which is only part time. As such, it's really low paid (£9200 per annum) Just got my first wage slip and I've been emergency taxed loads. How long can I expect to be on an emergency code for, and do I have to wait until April to claim the money back? The amount I've been taxed is ridiculous for what I earn.

Secondly, a council tax question. I rent with three students. They're all still at uni, whereas I've graduated. Our property is on the highest band, A, and we've just received our council tax bill for the year, which is nearly £1000.00. When it said 25% reduction for students, I thought it meant 25% per student, meaning I would only have my quarter share to pay. Turns out it's 25% reduction for all the students together!

Which basically means I've got to pay 75% of the council tax bill, which seems slightly unfair as I thought I'd only have to pay my share. That's nearly £750.00, which on my very low current salary I'm going to find extremely hard to pay. Is there any kind of claim I could make? Would it be possible to reduce the amount if I fall under a certain threshold, or would anyone be charged the same amount regardless of whether they earned 1 grand a year or 100 grand?

Sorry for boring post, just very confused :s-smilie:

Your employer will deduct Income Tax and National Insurance from your pay and send it to HMRC. £40 sounds about right for a month's NI for you.

In the long run, you will pay about £40 income tax as well. When you started, you will have been asked for a 'P45' from your last employer, which tells your new employer about you. If you don't have one - first job - you should complete a ?P46 that asks if this is your only job. If it is your only job, you should still pay around £40 per month tax. But you may get a refund at year end for the months you didn't work. If you haven't completed a P46, your employer may tax you at 'BR' - 20% on your whole pay - £150 pm. If that's happening - talk to your employer. Whatever happens, tax paid isn't lost forever - gets sorted out at year end.

Council Tax - different game. If you are only worker in house with three students - tough yes - you pay 75% of full rate, which may be a harsh £750. Talk to your District Council (or Met Borough) and ask whether you are entitled to 'Council Tax Benefit' because of your low income. I'm guessing you will be close.

Reply 1183

Illusionary

OP

19

Original post by Curtly_123

if your earning 9200, that is above the tax rate of 6000? so you pay 20%?

The standard 'personal allowance' threshold is currently £7,475, not £6,000, but yes, basic rate tax is currently charged at 20% on any income in excess of your personal allowance for the year.

ian.slater's got the rest of it pretty much covered - good post :yy:

My guide in the TSR wiki explains how to reclaim any overpaid Income Tax - see here: http://www.thestudentroom.co.uk/wiki/Income_Tax_and_National_Insurance

Reply 1184

Illusionary

OP

19

Original post by Ice_Queen

Emergency tax will only be a couple of months hopefully, but yes, I think you have to wait until the end of the fiscal year.

No, not necessarily - as above, see my guide in the wiki. :smile:

Reply 1185

alibee

2

Also to add that if you're on a low wage and liable for council tax, it's always worth applying for council tax benefit. Even if you're not entitled, there's nothing lost by applying. If you go into your council office they'll do a back of envelope calculation and see if you're likely to get any help.

Reply 1186

sara37

hi
iam studing a full time student ant the college ,iam doming HND , i do not work but my husband is working full time,
is there any refund tax from his salary , also i have akids i paid every month 300 child care after school ,the college did not pay for me becoase my husband is working a full time , the travel is very expansive for me , the cost ,tell me please any refund tak for full time studind

Reply 1187

Illusionary

OP

19

Original post by sara37

hi
iam studing a full time student ant the college ,iam doming HND , i do not work but my husband is working full time,
is there any refund tax from his salary , also i have akids i paid every month 300 child care after school ,the college did not pay for me becoase my husband is working a full time , the travel is very expansive for me , the cost ,tell me please any refund tak for full time studind

Each individual has their own personal allowance of income that you can receive each year without paying any Income Tax - currently £7,475 for most people - and this can't be shared between people, I'm afraid. Students are treated just the same as other individuals for most purposes here. I wouldn't expect your travel costs to be tax deductible for either of you in this situation.

Sorry that this isn't a great answer for you. :frown:

Reply 1188

sara37

thank you

i meant that is there arefund like 10% or 20% ,becouse one day there was a womwn who was studing she told me that , her husband is working a full time and she is studing a full time and she taks a refund tax , is it right and if i want to aske about it where and how

Reply 1189

sara37

- currently £7,475 for most people ,
sorry what do you mean by this

Reply 1190

Illusionary

OP

19

Original post by sara37

thank you

i meant that is there arefund like 10% or 20% ,becouse one day there was a womwn who was studing she told me that , her husband is working a full time and she is studing a full time and she taks a refund tax , is it right and if i want to aske about it where and how

You need to be clearer about your question - what tax exactly is it that you think might be refundable? Who would have paid it, and in relation to what?

Original post by sara37

- currently £7,475 for most people ,
sorry what do you mean by this

The personal allowance is an amount of income that you can receive each year without paying income tax, and this allowance tends to increase each year. Most people have an allowance of £7,475 for the year ended 5 April 2012, but there's a higher allowance for those aged 65, for example. See here: http://www.hmrc.gov.uk/pensioners/reducing-allowances.htm

Thanks

OP

Original post by hahahaha4564

Thanks

See here in my guide: http://www.thestudentroom.co.uk/wiki/Income_Tax_and_National_Insurance#Reclaiming_Overpaid_Tax :smile:

Reply 1193

Skill

10

Benn getting paid since 30/09/11 on a weekly basis on PAYE tax. Earning typically around £115/116 before tax and after tax around £91/£92. I accumulated £69.20 income tax by the 3rd payslip I received. Since then I haave not accumulated any income tax on my weekly pay. Total taxable pay amounts to £860.30 of which £69.20 is income tax. I'm confused? Why have I not been taxed for ages?

Reply 1194

Illusionary

OP

19

Original post by Skill

Benn getting paid since 30/09/11 on a weekly basis on PAYE tax. Earning typically around £115/116 before tax and after tax around £91/£92. I accumulated £69.20 income tax by the 3rd payslip I received. Since then I haave not accumulated any income tax on my weekly pay. Total taxable pay amounts to £860.30 of which £69.20 is income tax. I'm confused? Why have I not been taxed for ages?

What tax code is shown on your payslips for the weeks when you were, and when you weren't, taxed? It may be that your code has been updated/corrected between the two.

Did you complete a form P46 or hand in your form P45 to your employer and if so, when?

Reply 1195

Skill

10

Original post by Illusionary

What tax code is shown on your payslips for the weeks when you were, and when you weren't, taxed? It may be that your code has been updated/corrected between the two.

Did you complete a form P46 or hand in your form P45 to your employer and if so, when?

I don't see any code on my slips. It just says 'deduction item' 'PAYE' 'this period' '23.00' 'tax y.t.d' '23.00'

The times I haven't been taxed had the numbers missing in the 'deduction item' 'this period' 'tax y.t.d' section.

Can't remember about P45/P46. I think I might not have given them it as I didn't have it and I maybe did something else, but I really can't remember.

Reply 1196

alibee

2

Original post by Skill

I don't see any code on my slips. It just says 'deduction item' 'PAYE' 'this period' '23.00' 'tax y.t.d' '23.00'

The times I haven't been taxed had the numbers missing in the 'deduction item' 'this period' 'tax y.t.d' section.

Can't remember about P45/P46. I think I might not have given them it as I didn't have it and I maybe did something else, but I really can't remember.

The code won't be near that information. Your payslip should have some reference numbers and stuff on it, employee numbers, your name, is it near that? Or alternately near the bottom? There WILL be a tax code on there somewhere.

Reply 1197

Illusionary

OP

19

Original post by Skill

I don't see any code on my slips. It just says 'deduction item' 'PAYE' 'this period' '23.00' 'tax y.t.d' '23.00'

The times I haven't been taxed had the numbers missing in the 'deduction item' 'this period' 'tax y.t.d' section.

Can't remember about P45/P46. I think I might not have given them it as I didn't have it and I maybe did something else, but I really can't remember.

With the numbers that you've given it looks as though the issue here is a correction to your tax code, but I couldn't say for certain. There should be a code along the lines of "747L" or "BR" on your payslips. Without knowing that I can't really advise any further, except to suggest asking your employer.