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.

Announcements Posted on
Enter our travel-writing competition for the chance to win a Nikon 1 J3 camera 21-05-2013
Sign in to Reply
  1. edjunkie's Avatar
    • Benevolent Member
    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.
  2. OU Student's Avatar
    • Section Moderator
    • Indie Kid
    Re: Student pay & Tax
    NI is worked out on a weekly basis. You can only claim it back if you overpaid.

    Did you work at any other time over the year?
  3. Wowzer_88's Avatar
    • Respected Member
    • Posts: 157
    How much is tax?
    Literally know nothing about tax as this is my first job
    but im a student and working from now till september
    i earn £6.50 an hour
    am i even meant to pay tax?
  4. OU Student's Avatar
    • Section Moderator
    • Indie Kid
    Re: How much is tax?
    That depends on how much you're earning. Your tax allowance should be £8105 per year.
  5. IAmTheKing's Avatar
    • Exalted Member
    • Posts: 342
    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.
  6. OU Student's Avatar
    • Section Moderator
    • Indie Kid
    Re: How much is tax?
    (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.
    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.
  7. moonkatt's Avatar
    • Section Moderator
    • Overlord in Training
    • Location: Brum
    • Posts: 2,326
    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.
  8. Illusionary's Avatar
    • Section Leader
    • Supersonic Moderator
    • Location: Manchester
    Re: Tax - TSR guide and questions thread
    (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.
    £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.

    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).

    (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.
    Yep, good suggestion. Here's a link to the form: http://www.hmrc.gov.uk/forms/p38s.pdf
  9. OU Student's Avatar
    • Section Moderator
    • Indie Kid
    Re: Tax - TSR guide and questions thread
    (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.
    Yeah, it was a typo.
  10. Illusionary's Avatar
    • Section Leader
    • Supersonic Moderator
    • Location: Manchester
    Re: Tax - TSR guide and questions thread
    (Original post by OU Student)
    Yeah, it was a typo.
    :console: That happens to even the best at times! :lol:
  11. Wowzer_88's Avatar
    • Respected Member
    • Posts: 157
    Re: How much is tax?
    (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.
    what is this?
  12. Illusionary's Avatar
    • Section Leader
    • Supersonic Moderator
    • Location: Manchester
    Re: Tax - TSR guide and questions thread
    (Original post by Wowzer_88)
    what is this?
    http://www.hmrc.gov.uk/incometax/personal-allow.htm

    Currently £8,105 for the year ending 5 April 2013 for most people.
  13. H.Maleki's Avatar
    • Exalted Member
    • Location: With your mum
    • Posts: 390
    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?
  14. OU Student's Avatar
    • Section Moderator
    • Indie Kid
    Re: Income Tax
    Did you fill in a P46? Your tax allowance (which has nothing to do with being a student) is £8105.
  15. Eridani's Avatar
    • Full Member
    • Posts: 85
    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.
  16. Illusionary's Avatar
    • Section Leader
    • Supersonic Moderator
    • Location: Manchester
    Re: Tax - TSR guide and questions thread
    (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?
    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
    (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.
    If it's what I think this is, this isn't technically 'emergency tax' - but I know what you're getting at (see here).
  17. Pin's Avatar
    • Exalted Member
    • Posts: 276
    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.
  18. Illusionary's Avatar
    • Section Leader
    • Supersonic Moderator
    • Location: Manchester
    Re: Tax - TSR guide and questions thread
    (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.
    Unfortunately 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.

    Here's a link: http://www.hmrc.gov.uk/forms/p46.pdf
  19. H.Maleki's Avatar
    • Exalted Member
    • Location: With your mum
    • Posts: 390
    Re: Tax - TSR guide and questions thread
    (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).
    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
  20. Illusionary's Avatar
    • Section Leader
    • Supersonic Moderator
    • Location: Manchester
    Re: Tax - TSR guide and questions thread
    (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
    I'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.
Sign in to Reply
Share this discussion:  
Article updates
Moderators

We have a brilliant team of more than 60 volunteers looking after discussions on The Student Room, helping to make it a fun, safe and useful place to hang out.

Reputation gems:
The Reputation gems seen here indicate how well reputed the user is, red gem indicate negative reputation and green indicates a good rep.
Post rating score:
These scores show if a post has been positively or negatively rated by our members.