[Skill]

Hmm I didn't think of that, silly me. It has. After the 3rd slip it became ... '747L'

[Illusionary]

(Original post by Skill)
Hmm I didn't think of that, silly me. It has. After the 3rd slip it became ... '747L'

In which case, as above it's just a case of your tax code being updated. "0T" indicates that you're not being given the benefit of any of your 'personal allowance' of income that you can receive each year without any Income Tax being due; "747L" indicates that you're being treated as having the standard £7,475 allowance (which, assuming that this is your only source of income and is at a constant rate, would fully cover your income for the year).

If you've not received a refund of the previously paid Income Tax, I'd suggest that you get in touch with your tax office to follow up on this.

[Skill]

(Original post by Illusionary)
In which case, as above it's just a case of your tax code being updated. "0T" indicates that you're not being given the benefit of any of your 'personal allowance' of income that you can receive each year without any Income Tax being due; "747L" indicates that you're being treated as having the standard £7,475 allowance (which, assuming that this is your only source of income and is at a constant rate, would fully cover your income for the year).

If you've not received a refund of the previously paid Income Tax, I'd suggest that you get in touch with your tax office to follow up on this.

I'm confused by the 'OT' tax code because I thought EVERYONE was entitled to their personal allowance of 7,475. I didn't know some were not entitled to it??

Also why are they changing it? Because from what I gathered most people get taxed weekly regardless of their earnings and then when April of the new year comes, they are then given a tax rebate. I thought me getting taxed weekly was normal and that come April I would receive a full rebate as I'd be earning under the personal allowance. So why as I not entitled to the personal allowance in the first place as you seem to suggest?

[Illusionary]

(Original post by Skill)
I'm confused by the 'OT' tax code because I thought EVERYONE was entitled to their personal allowance of 7,475. I didn't know some were not entitled to it??

Also why are they changing it? Because from what I gathered most people get taxed weekly regardless of their earnings and then when April of the new year comes, they are then given a tax rebate. I thought me getting taxed weekly was normal and that come April I would receive a full rebate as I'd be earning under the personal allowance. So why as I not entitled to the personal allowance in the first place as you seem to suggest?

Generally, everyone is (though some, particularly older, people are entitled to a greater allowance). The issue can arise if you don't give a form P45 or P46 to your employer, as they may have to assume that your allowance has been allocated to another job if you haven't confirmed that you don't have another job. The change now is likely because your records have been updated (maybe a form has been processed) so they now know to include the effect of the personal allowance here.

[ScouseEmma28]

Well, I understand that:

Main job (highest income): personal allowance of £7k+ per yr
2nd job (least income) : is a BR rate of 22%

So this applies even though im a student?

What about the holiday periods? Im sure there's a special exception for working holidays only?

All very confusing!

Cheers!

[iPhone]

Students are treated the same as others when it comes to income tax so yes, it still applies.

[TheCurlyHairedDude]

BR of 22%

That's more than emergency tax!

You're a student. I've had several jobs as a student and I didn't pay any tax at all.

[MoonGazer]

Then you just earned under your yearly personal allowance - your status as a student has no effect on whether you pay tax or not. If you're earning over 7k a year, you're going to get taxed on it. If you're not, however, speak to HMRC and have them split your allowance between both jobs, which should result in you having to pay a bit less tax on your overall earnings.

[Illusionary]

(Original post by ScouseEmma28)
Well, I understand that:

Main job (highest income): personal allowance of £7k+ per yr
2nd job (least income) : is a BR rate of 22%

So this applies even though im a student?

What about the holiday periods? Im sure there's a special exception for working holidays only?

All very confusing!

Cheers!

This is standard. If you have more than one job, all of your personal allowance (currently £7,475 per year for most people) will be allocated to your first/'main' job by default. You can change this split to a more appropriate one by contacting your tax office if you like.

22% isn't the currently basic rate of Income Tax - that's several years out of date now and the rate is now 20%.

If you're a student working only in holiday periods you can apply to have your income paid gross if you won't exceed your personal allowance for the year, but that's not the case here. Your options are to arrange a split of your personal allowance, or to wait until the end of the tax year (or until you leave employment fully) and get in touch with your tax office at that point to request a refund. Take a look at my guide in the TSR wiki (as linked to in the first post of this merged thread) for more info.

[reissbcfc]

I am on a temporary contract for a month at the end of each month I get a phone to say if my contract has been extended. I am on £5.25 an hour and not getting taxed.

I assumed that I would get taxed because PAYE assumes that I will be working for the whole year and then I would claim it back if left the job. Is this right?

Will I start to get taxed as soon as I have earned over the allowance?

Is it because I am on a temporary monthly contract?

[Illusionary]

(Original post by reissbcfc)
I am on a temporary contract for a month at the end of each month I get a phone to say if my contract has been extended. I am on £5.25 an hour and not getting taxed.

I assumed that I would get taxed because PAYE assumes that I will be working for the whole year and then I would claim it back if left the job. Is this right?

Will I start to get taxed as soon as I have earned over the allowance?

Is it because I am on a temporary monthly contract?

I wouldn't expect this to be because your contract. Have you completed a form P46 for your employer or given your form P45 to them (you probably have if you're not having Income Tax deducted)?

PAYE does assume that you're working for the rest of the year at the same level of income, yes, but it also takes account of your personal allowance (currently £7,475 for most people) effectively spread across the year. We're a fair way into the tax year now (which starts on 6 April each year), so your cumulative income to date since the start of the year will be compared to the proportion of your personal allowance attributable to the length of time that we are now into the year (almost eight months). If your cumulative income exceeds that proportion (approx. 8/12 of £7,475, or £4,983), you'd expect to be taxed at 20% on the excess; if your income is below that, I wouldn't expect you to see any Income Tax deduction.

If you can let me know your tax code, cumulative income to date and currently weekly income, I may be able to help further.

[Skill]

(Original post by Illusionary)
Generally, everyone is (though some, particularly older, people are entitled to a greater allowance). The issue can arise if you don't give a form P45 or P46 to your employer, as they may have to assume that your allowance has been allocated to another job if you haven't confirmed that you don't have another job. The change now is likely because your records have been updated (maybe a form has been processed) so they now know to include the effect of the personal allowance here.

I received my latest slip with the '747L' tax code yet I was taxed ...

- 'NI EE's' - £9.95
- 'PAYE' - £15.60

Total - £25.55

I'm confused. I thought I didn't have to pay NI tax. I thought I didn't have to pay the income tax as my new tax code entitles me to my personal allowance.

[Illusionary]

(Original post by Skill)
I received my latest slip with the '747L' tax code yet I was taxed ...

- 'NI EE's' - £9.95
- 'PAYE' - £15.60

Total - £25.55

I'm confused. I thought I didn't have to pay NI tax. I thought I didn't have to pay the income tax as my new tax code entitles me to my personal allowance.

How much did you earn this pay period and what's your cumulative income to date and cumulative Income Tax deduction to date since 6 April 2011?

NI is calculated for each pay period separately, with deductions at a rate of 12% on income in excess of £139 per week (unless you're under 16?).

[Skill]

(Original post by Illusionary)
How much did you earn this pay period and what's your cumulative income to date and cumulative Income Tax deduction to date since 6 April 2011?

NI is calculated for each pay period separately, with deductions at a rate of 12% on income in excess of £139 per week (unless you're under 16?).

This period was £221.89 before tax. Cumulative income reached £1082.19 after this £221.89 payslip / £196.34 payment after tax.

Tax deduction since April 2011? Not 100% sure but I think it's about £ 95 including the NI/Paye tax I mentioned in my last post.

I'm over 16.

[Illusionary]

(Original post by Skill)
This period was £221.89 before tax. Cumulative income reached £1082.19 after this £221.89 payslip / £196.34 payment after tax.

Tax deduction since April 2011? Not 100% sure but I think it's about £ 95 including the NI/Paye tax I mentioned in my last post.

I'm over 16.

I'm assuming that this was weekly pay rather than monthly? Your NI looks right: (£222-£139)@12%=£9.96.

Does your tax code have a "W1" suffix or something along the lines of "non-cumulative"? It looks like your Income Tax deductions have been calculated based just on this week's income and one week's personal allowance rather than the usual cumulative treatment: (£222-(£7,475/52))@20%=£15.65

The non-cumulative treatment would be worth following up with your tax office and/or employer for an explanation. IN any case, though, if you get to the end of the year and have overpaid Income Tax you should be able to reclaim it at that point.

[Skill]

(Original post by Illusionary)
I'm assuming that this was weekly pay rather than monthly? Your NI looks right: (£222-£139)@12%=£9.96.

Does your tax code have a "W1" suffix or something along the lines of "non-cumulative"? It looks like your Income Tax deductions have been calculated based just on this week's income and one week's personal allowance rather than the usual cumulative treatment: (£222-(£7,475/52))@20%=£15.65

The non-cumulative treatment would be worth following up with your tax office and/or employer for an explanation. IN any case, though, if you get to the end of the year and have overpaid Income Tax you should be able to reclaim it at that point.

No to W1 and non cumulative.

[Illusionary]

(Original post by Skill)
No to W1 and non cumulative.

Hmmm... that's definitely something to follow up with your employer/tax office to explain why that seems to be the treatment applied here, then. I'd expect to see cumulative treatment unless there's a specific reason why not.

[AshleyV]

dont have time to look through so sorry if this has already been answered.

i've been taxed on my past 2 months pay and my tax code says OT im under 18 so i figured im not supposed to be getting taxed at all? i tried calling the hmrc help line and it just told me to look on the site on how to claim a refund which i already looked at. Apparently i won't be refunded what i've been taxed until April next year? is there anyway i can get a refund sooner?

[Illusionary]

(Original post by AshleyV)
dont have time to look through so sorry if this has already been answered.

i've been taxed on my past 2 months pay and my tax code says OT im under 18 so i figured im not supposed to be getting taxed at all? i tried calling the hmrc help line and it just told me to look on the site on how to claim a refund which i already looked at. Apparently i won't be refunded what i've been taxed until April next year? is there anyway i can get a refund sooner?

Being under 18 has no effect on whether or not you're liable to Income Tax. However, a "0T" tax code doesn't sound correct if this is your only source of income - see my post in reply to Skill above: http://www.thestudentroom.co.uk/showpost.php?p=35039810

If you can get your tax code updated, you should receive a refund of any overpaid Income Tax via the payroll system at that point, but as an alternative, yes, to can request a refund of any overpaid Income Tax from HMRC following the end of the tax year in April, or when you leave employment. Take a look at my guide in the TSR wiki (linked to in the first post in this thread) for more info about how to claim a refund.

Have you completed a form P46 for your employer? if not, I suggest that you do so as that should allow your tax code to be updated

[problemsolver]

This isn't a concern for me right now, but if I had a website which earned significant income, say through adsense, would I have to take any action to pay tax on this?