[randomguy786]

So I got a summer job this year. I just finished year 13 and have a conditional offer, which I have firmed. I had my job induction today and filled in a p38 form, in which I said my institution was the University of Manchester. Was this correct?

Ill be working around 40 hours per week at around £5.50 per hour.

Can someone tell me the exact taxes that I will be paying?

[Genocidal]

Well you will pay National Insurance I think. Apart from that it will be just anything over the tax threshold at the 20% level, which is about £10,000 now (or it will be soon).

[boba]

£5.50 a week at 40 hours a week would be £220 a week.
this would be them times by 52 to get your projected yearly earnings of 11440 which is above the personal allowance so you would be taxed the normal rate of 20% so £44 a week.

since this is just a summer job? and you wont actually be working 52 weeks a year you probably wont actually exceed the personal allowance so can claim it back at the end of the tax year. alternatively I think there is some form you can fill in if you know you won't be exceeding the allowance so it wont be taken away in the first place (although if your wrong and you do you will then have to pay what you owe at the end of the tax year but this seems unlikely in your case)

edit:this is wrong as I forgot to take away the personal allowance when working out the amount of tax paid, but I can't be bothered fixing it. especially as the correct working out has been posted by someone anyway.

[randomguy786]

Yeah I filled in the P38 form, but since I only have a conditional offer at Manchester, I was worried that what I wrote was incorrect.

[boba]

(Original post by cl_steele)
I was under the impression that students can be tax emept but i could be wrong... and if its just a summer job you shouldnt hit the tax criteria either way so there should be a form you can sign that means you dont have it deducted otherwise you can claim it back ... serious pain but hey ho

students are not exempt from income tax

[boba]

(Original post by randomguy786)
Yeah I filled in the P38 form, but since I only have a conditional offer at Manchester, I was worried that what I wrote was incorrect.

I don't think it really matters, if for some reason you didn't meet your offer and weren't going you could just inform them come results day.

[cl_steele]

(Original post by boba)
students are not exempt from income tax

Apologies my mistake, if im reading HMRC site right though im a little right

If you're a full-time student with a holiday job, you may not need to pay tax through PAYE (you will still pay National Insurance if you earn more than the weekly threshold).

You can ask your employer for a form P38(S) (or download it below) if all the following apply:

you're a full-time student in the UK, only working in the holidays
you're returning to full-time education after the holiday
your total income for the year is below the personal allowance

If you have a part-time job during term time, you can't use form P38(S) just for your holiday job. Your employer will take care of the paperwork to make sure you don't pay too much tax.

[boba]

(Original post by cl_steele)
Apologies my mistake, if im reading HMRC site right though im a little right

yes because its a gaurentee that you wont meet the personal allowance because you can confirm you wont work all year.

"Use form P38(S) if you employ a student who works for you only in their holidays and whose earnings from your employment do not exceed their personal allowance for the tax year. If a student employee is covered by P38(S), you don't have to follow normal P45 and P46 procedures and you can pay them without deducting tax."

its still the fact that your not meeting the personal allowance that means you don't pay tax and if you do you will still have to be taxed despite the fact that you are a student

[cl_steele]

(Original post by boba)
yes because its a gaurentee that you wont meet the personal allowance because you can confirm you wont work all year.

"Use form P38(S) if you employ a student who works for you only in their holidays and whose earnings from your employment do not exceed their personal allowance for the tax year. If a student employee is covered by P38(S), you don't have to follow normal P45 and P46 procedures and you can pay them without deducting tax."

its still the fact that your not meeting the personal allowance that means you don't pay tax and if you do you will still have to be taxed despite the fact that you are a student

Ah well you learn something new everyday dont you, my bad :P allthis tax stuff is rather confusing though

[OU Student]

The tax allowance for 2012/2013 is £8105.

NI is worked out weekly.

[HurricaneDominic]

(Original post by randomguy786)
So I got a summer job this year. I just finished year 13 and have a conditional offer, which I have firmed. I had my job induction today and filled in a p38 form, in which I said my institution was the University of Manchester. Was this correct?

Ill be working around 40 hours per week at around £5.50 per hour.

Can someone tell me the exact taxes that I will be paying?

I'm in the exact same position as you but I am working around 30 hours per week this Summer and then the same whenever I will be back from University.
I am currently on £4.98/hour and have been getting taxed. So far they have taxed me around £60 so I am eager to claim it back. I will go to the tax office sometime this week and see what they can do for me. I know it's pretty easy to claim the tax back so it shouldn't be much trouble, however I wish they'd sort it out when you start the job.

[randomguy786]

(Original post by HurricaneDominic)
I'm in the exact same position as you but I am working around 30 hours per week this Summer and then the same whenever I will be back from University.
I am currently on £4.98/hour and have been getting taxed. So far they have taxed me around £60 so I am eager to claim it back. I will go to the tax office sometime this week and see what they can do for me. I know it's pretty easy to claim the tax back so it shouldn't be much trouble, however I wish they'd sort it out when you start the job.

Oh I see. Is that £60 National Insurance tax?

[HurricaneDominic]

(Original post by randomguy786)
Oh I see. Is that £60 National Insurance tax?

No, just 'tax to date'.
I have not been charged National Insurance.

[randomguy786]

(Original post by HurricaneDominic)
No, just 'tax to date'.
I have not been charged National Insurance.

I'm confused. What's tax to date? Is that income tax?

If you earn over £146 a week you have to pay 12% of it as national insurance tax. You earn £149.40 per week so don't you have to pay £17.93 as national insurance tax?

[Eridani]

(Original post by boba)
£5.50 a week at 40 hours a week would be £220 a week.
this would be them times by 52 to get your projected yearly earnings of 11440 which is above the personal allowance so you would be taxed the normal rate of 20% so £44 a week.

since this is just a summer job? and you wont actually be working 52 weeks a year you probably wont actually exceed the personal allowance so can claim it back at the end of the tax year. alternatively I think there is some form you can fill in if you know you won't be exceeding the allowance so it wont be taken away in the first place (although if your wrong and you do you will then have to pay what you owe at the end of the tax year but this seems unlikely in your case)

You only pay 20% for everything above the tax free threshold, so £8,105 would be tax free. 20% of £3,335, which is £667 would be the total amount of income tax paid over the year.
Income tax paid per week = £12.82
National insurance is 12% of the amount you earn between £146 and £817 per week, which in this case is £74. 12% of £74 is £14.80.
NI paid per week = £14.80

The second part of the quoted post about claiming overpaid tax is correct.

If I've made a mistake, let me know.

[HurricaneDominic]

(Original post by randomguy786)
I'm confused. What's tax to date? Is that income tax?

If you earn over £146 a week you have to pay 12% of it as national insurance tax. You earn £149.40 per week so don't you have to pay £17.93 as national insurance tax?

Tax to date is income tax, yes.

I have only had the job 3 full weeks so far and this week has been the only week so far that I have earned enough to be taxed national insurance, but I will get that wage slip next week. This week I have been given 35 hours where as last week I had 20-something and the week before only 16, but from now on it will be around 30 hours per week until I go to university in September. I will then get similar hours when I return during half terms.

[randomguy786]

(Original post by HurricaneDominic)
Tax to date is income tax, yes.

I have only had the job 3 full weeks so far and this week has been the only week so far that I have earned enough to be taxed national insurance, but I will get that wage slip next week. This week I have been given 35 hours where as last week I had 20-something and the week before only 16, but from now on it will be around 30 hours per week until I go to university in September. I will then get similar hours when I return during half terms.

Ahh I see. Why did they charge you income tax? Did you fill in the P38 form?

[HurricaneDominic]

(Original post by randomguy786)
Ahh I see. Why did they charge you income tax? Did you fill in the P38 form?

No I haven't yet. I will do it next week, most likely on Monday.
I'm in work tomorrow so I will see if my work can sort it out for me and if not I will go to the tax office.

[randomguy786]

(Original post by HurricaneDominic)
No I haven't yet. I will do it next week, most likely on Monday.
I'm in work tomorrow so I will see if my work can sort it out for me and if not I will go to the tax office.

Just print and fill out this form and then hand it to your manager or whoever deals with pay

[Illusionary]

(Original post by randomguy786)
So I got a summer job this year. I just finished year 13 and have a conditional offer, which I have firmed. I had my job induction today and filled in a p38 form, in which I said my institution was the University of Manchester. Was this correct?

Ill be working around 40 hours per week at around £5.50 per hour.

Can someone tell me the exact taxes that I will be paying?

Ths isn't correct - you're not eligible to use the form P38(S) procedures unless you're a student working only in holiday periods, currently enrolled on a course that will continue until at least the next 5 April. You're not yet enrolled (especially given that your offer is only conditional) so you've signed a declaration on the form that isn't true. You need to inform your employer and complete a form P46 instead (link). You'll then be taxed just as any other UK-resident employee would. This doesn't necessarily mean that you'll have any Income Tax deducted from your pay - in your case, while the calculations aren't immediately straightforward (they work on a cumulative basis, comparing your cumulative income to date for the year to the proportion of your 'personal allowance' that relates to the length of time since the start of the tax year.

The 'personal allowance' is an amount of income that you can receive in the tax year without paying any Income Tax. It's currently £8,105 for most UK resident individuals.

I've covered National Insurance Contributions below.

(Original post by Genocidal)
Well you will pay National Insurance I think. Apart from that it will be just anything over the tax threshold at the 20% level, which is about £10,000 now (or it will be soon).

As above, the personal allowance is currently £8,105. Under the coalition agreement of the current Government, we can expect it to increase to £10,000 by 2015.

(Original post by cl_steele)
I was under the impression that students can be tax emept but i could be wrong... and if its just a summer job you shouldnt hit the tax criteria either way so there should be a form you can sign that means you dont have it deducted otherwise you can claim it back ... serious pain but hey ho

Very much not the case - students are liable to Income Tax in the same way as any other individual. Even under the P38(S) procedures, this is a concession that doesn't alter an individual's ultimate liability, but rather the pattern of payment/refunds.

(Original post by randomguy786)
Yeah I filled in the P38 form, but since I only have a conditional offer at Manchester, I was worried that what I wrote was incorrect.

As above, this is incorrect.

(Original post by OU Student)
The tax allowance for 2012/2013 is £8105.

NI is worked out weekly.

Yep For others' reference, employee NI contributions are currently 12% on income in excess of £146 per week (With a lower rate on income in excess of £817 per week).

(Original post by boba)
I don't think it really matters, if for some reason you didn't meet your offer and weren't going you could just inform them come results day.

As above.

If I've missed any outstanding questions, please ask again.