Tax - TSR guide and questions thread
Discussion about all the financial aspects of life - from bank accounts, overdrafts and budgeting to tax, savings and investments. For discussion about student loans, grants, and bursaries please use the Student Financial Support subforum.
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Re: Student pay & Tax
If your internship was between 6 April 2011 and 5 April 2012, now is the right time to claim the tax element back, if you had no other earnings. This assumes your total earnings were below £7475. You can find out how from http://www.hmrc.gov.uk/students/
I think students have a simplified form to fill out to reclaim tax rather than having to do self assessment. -
Re: How much is tax?Students, like everyone else, are only exempt if their income is less than £6105 per year.(Original post by IAmTheKing)
I'm pretty sure students are exempt from paying income tax... Not sure about national insurance though. A quick look on direct.gov should clarify thing for you though.
The national insurance thing is based on weekly earnings. -
Re: How much is tax?
OP, if you are only working through the summer break and will not be earning over the usual tax free allowance for the financial year and will not be in paid employment at any other point of the financial year then you can fill out a form P38(S) from the tax office which you then send to your payroll department and you shouldn't pay tax on those earnings. However if you want to work throughout the year or will earn over your tax free allowance then I'd just allow tax to be calculated in the normal way and you should get back any overpayment at the end of the financial year in your wages.
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Re: Tax - TSR guide and questions thread£8,105 for the current tax year (April 6 to April 5), but I'm sure that was just a typo as I know that you know what you're talking about.(Original post by OU Student)
Students, like everyone else, are only exempt if their income is less than £6105 per year.
The national insurance thing is based on weekly earnings.
Basic rate Income Tax is then 20% on income in excess of that threshold.
Employee National Insurance Contributions (NICs) are a 12% deduction on weekly income in excess of £146 (2% on any in excess of £817/week, if you were fortunate enough to earn that much).
Yep, good suggestion. Here's a link to the form: http://www.hmrc.gov.uk/forms/p38s.pdf(Original post by moonkatt)
OP, if you are only working through the summer break and will not be earning over the usual tax free allowance for the financial year and will not be in paid employment at any other point of the financial year then you can fill out a form P38(S) from the tax office which you then send to your payroll department and you shouldn't pay tax on those earnings. However if you want to work throughout the year or will earn over your tax free allowance then I'd just allow tax to be calculated in the normal way and you should get back any overpayment at the end of the financial year in your wages. -
Re: Tax - TSR guide and questions threadYeah, it was a typo.(Original post by Illusionary)
£8,105 for the current tax year (April 6 to April 5), but I'm sure that was just a typo as I know that you know what you're talking about.
Basic rate Income Tax is then 20% on income in excess of that threshold.
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Re: How much is tax?what is this?(Original post by moonkatt)
OP, if you are only working through the summer break and will not be earning over the usual tax free allowance for the financial year and will not be in paid employment at any other point of the financial year then you can fill out a form P38(S) from the tax office which you then send to your payroll department and you shouldn't pay tax on those earnings. However if you want to work throughout the year or will earn over your tax free allowance then I'd just allow tax to be calculated in the normal way and you should get back any overpayment at the end of the financial year in your wages. -
Re: Tax - TSR guide and questions threadhttp://www.hmrc.gov.uk/incometax/personal-allow.htm(Original post by Wowzer_88)
what is this?
Currently £8,105 for the year ending 5 April 2013 for most people. -
Income Tax
Right, I worked for 5 days consecutively from the 26th of June till 30th of June. This is the only week i worked for that whole month. I recieved my payslip and i was taxed at 20% of the income i got. I finished A Levels in June and awaiting to go uni in October. Should i have been taxed?
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Re: Income Tax(Original post by H.Maleki)
Right, I worked for 5 days consecutively from the 26th of June till 30th of June. This is the only week i worked for that whole month. I recieved my payslip and i was taxed at 20% of the income i got. I finished A Levels in June and awaiting to go uni in October. Should i have been taxed?
Sounds like you might be on emergency tax. Call up HMRC and see if you can get another tax code issued.Last edited by Eridani; 19-07-2012 at 18:49. -
Re: Tax - TSR guide and questions threadThe issue is likely that you didn't complete a form P46, as OU Student suggests. I'm assuming that you're no longer employed? If you expect your income for the full tax year (ending on 5 April 2013) will not exceed your 'personal allowance' of income that you can receive without having an Income Tax liability (currently £8,105 for most people) and you don't expect to work again until 5 April 2013, you can use a form P50 to request a refund of any overpaid Income Tax from HMRC. Here's a link: http://www.hmrc.gov.uk/pdfs/p50.pdf(Original post by H.Maleki)
Right, I worked for 5 days consecutively from the 26th of June till 30th of June. This is the only week i worked for that whole month. I recieved my payslip and i was taxed at 20% of the income i got. I finished A Levels in June and awaiting to go uni in October. Should i have been taxed?
If it's what I think this is, this isn't technically 'emergency tax' - but I know what you're getting at (see here).(Original post by David_DC)
Sounds like you might be on emergency tax. Call up HMRC and see if you can get another tax code issued. -
Re: Tax - TSR guide and questions thread
Hi
I'm 17 and working in the summer between A levels and uni. I was given p38 form by agency bt don't think it's the right form for me. It asks for current school until April 2013, but being between 6th form and uni, not sure what to put.
I know I'll be definitely earning <£8000. Which, if any, form should I fill out?
Thank you
I tried explaining all this to the agency and they weren't helpful at all. -
Re: Tax - TSR guide and questions threadUnfortunately you can't use the form P38(S) if you're not currently on a course that will continue to the end of the tax year (5 April 2013). You'll need to complete a form P46, which doesn't allow for this special treatment. Depending on your pattern of income, though, you may not have to pay Income Tax and later reclaim it even without the form P38(S) route.(Original post by Pin)
Hi
I'm 17 and working in the summer between A levels and uni. I was given p38 form by agency bt don't think it's the right form for me. It asks for current school until April 2013, but being between 6th form and uni, not sure what to put.
I know I'll be definitely earning <£8000. Which, if any, form should I fill out?
Thank you
I tried explaining all this to the agency and they weren't helpful at all.
Here's a link: http://www.hmrc.gov.uk/forms/p46.pdf -
Re: Tax - TSR guide and questions threadI completed a P46 and took it to my interview before i started, the dumb asian guy looked at it and said 'oh you dont need this' then threw it away, i called up hmrc and they said go to your payroll department and fill out a p46 and call us back 28 days later, im still currently employed with the company, i also have another job but i only earn roughly £50 every two weeks from my other employer(Original post by Illusionary)
The issue is likely that you didn't complete a form P46, as OU Student suggests. I'm assuming that you're no longer employed? If you expect your income for the full tax year (ending on 5 April 2013) will not exceed your 'personal allowance' of income that you can receive without having an Income Tax liability (currently £8,105 for most people) and you don't expect to work again until 5 April 2013, you can use a form P50 to request a refund of any overpaid Income Tax from HMRC. Here's a link: http://www.hmrc.gov.uk/pdfs/p50.pdf
If it's what I think this is, this isn't technically 'emergency tax' - but I know what you're getting at (see here). -
Re: Tax - TSR guide and questions threadI'm guessing that you might not have received a form P45 from your former employer then? You'd need to pass that to your new employer to get this position straight. If you've not received one, follow up with your former employer as you're entitled to receive it.(Original post by H.Maleki)
I completed a P46 and took it to my interview before i started, the dumb asian guy looked at it and said 'oh you dont need this' then threw it away, i called up hmrc and they said go to your payroll department and fill out a p46 and call us back 28 days later, im still currently employed with the company, i also have another job but i only earn roughly £50 every two weeks from my other employer
Basic rate Income Tax is then 20% on income in excess of that threshold.
That happens to even the best at times!