Does a bank account get taxed?

Hi guys, I’m 19 years old and I’m starting a part time job as a tutor in a tuition centre. I’m going to be paid by bank transfer, so I wanted to know whether my pay will automatically be taxed and then sent to my account, or if it will be sent to my account and then taxed. This is my first job so I’m not sure how the whole system works, and the gov.uk website is very confusing. I’d appreciate if someone could break this down for me. Thank you!

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Reply 1

Medkid100

I’d be earning around ~£10000 a year for reference

Reply 2

marple

Original post by Medkid100

I’d be earning around ~£10000 a year for reference

Most people are paid under PAYE - the employer deducts tax and national insurance and pays this over to HMRC. The employee receives their net salary.
Everyone has a personal allowance which is the amount you can earn before paying tax. At present, this is £12,500. Make sure you fill in a starter form (print from here is your employer doesn't give you one https://www.gov.uk/government/publications/paye-starter-checklist ) to make sure you are put on the right tax code. If the employer puts you on an emergency code, you will get tax deducted, although you will get this back once your proper code is sorted out.

Good luck with your new job.

Reply 3

ch0c0h01ic

Original post by Medkid100

Check with company payroll first and foremost - they will be able to clarify whether you need to file a self assessment tax return.

Be wary of tutoring/supply teaching companies, many will try to avoid paying by PAYE and specify that you use an "umbrella company". Avoid this at all costs because you will often be charged for this "service" and they are notorious for miscalculating tax, national insurance, pension and student loan liabilities (which can mean significant tax bills at a later date!).

Reply 4

Muttley79

Original post by Medkid100

This sounds very dodgy - what age are you tutoring?

Reply 5

Medkid100

Original post by Muttley79

This sounds very dodgy - what age are you tutoring?

I’m tutoring primary school and gcse students.
What aspects of it sound dodgy?

Reply 6

Muttley79

Original post by Medkid100

I’m tutoring primary school and gcse students.
What aspects of it sound dodgy?

What qualifications do you have to do that? Are you familiar with the Primary National curriculum and the changes?

The rate of pay should tell you this is not a great place to work for.

Reply 7

RogerOxon

Original post by Medkid100

Are you going to be an employee?

There are NI contributions to pay too.

Reply 8

RogerOxon

Original post by Muttley79

The rate of pay should tell you this is not a great place to work for.

They said part-time, so it's hard to know the rate of pay.

Reply 9

Medkid100

Original post by Muttley79

What qualifications do you have to do that? Are you familiar with the Primary National curriculum and the changes?

The rate of pay should tell you this is not a great place to work for.

I’m not sure what the primary national curriculum is but I have been DBS checked.
Also, is the rate of pay too low/high or something which makes it sound dodgy? I don’t know any friends in the same company that I’m due to work for so I’m not sure how to tell how a tuition centre works.

Reply 10

Medkid100

Original post by Medkid100

The children who I am tutoring are also kids of my mums friends who I know very well, would this affect me?

Reply 11

threeportdrift

Careers Forum Helper

Original post by Medkid100

Are you being employed by this tutoring company, or have they told you you are 'self employed'?

Reply 12

Medkid100

Original post by threeportdrift

Are you being employed by this tutoring company, or have they told you you are 'self employed'?

They told me that they are employing me, no mention of self employment AFAIK

Reply 13

StriderHort

Original post by Medkid100

They mean do you have any idea what you need to teach? :redface:

Reply 14

Medkid100

Original post by StriderHort

They mean do you have any idea what you need to teach? :redface:

Ah yes sorry 😂
Yh I’ve been given a scheme of learning which shows what I’ll be teaching throughout the course of the year

Reply 15

Medkid100

Also I’ve been selling my own ebooks online on my website which can be bought through PayPal, will my bank account get taxed as a result of this, since I’m receiving income from online? Not sure about this either

Reply 16

Muttley79

Original post by Medkid100

Ah yes sorry 😂
Yh I’ve been given a scheme of learning which shows what I’ll be teaching throughout the course of the year

Does it fit with the National curriculum - I'm sorry but this sounds like it is ripping off parents. If you know the families I wouldn't do this.

If children need additional help they need to speak to school.

I'd look for something better tbh. Teachers have a degree plus additional training ...

Reply 17

threeportdrift

Careers Forum Helper

Original post by Medkid100

They told me that they are employing me, no mention of self employment AFAIK

Then they will take the appropriate tax and NI off your pay before it arrives with you under what is called PAYE, Pay As You Earn. When you get your payslip check the tax code, it should be BR something. You then need to work out if you are likely to earn more than £12,000 odd in the year April 2020-April 2021. If not, then phone the tax office and explain that, and they will change your tax code and you should not be paying any tax. I'm not a tax advisor, you will have to learn all the nuances around that!

Reply 18

username5383500

Original post by Muttley79

Teachers have a degree plus additional training ...

Not that missing either of these invalidates someone's ability to teach.

Reply 19

Medkid100

Original post by Muttley79

Yes it fits with the national curriculum. The topics that I’m covering are also thought in school so it allows to consolidate their learning. The kids’ parents also requested me to teach their kids specifically a the tuition centre, how would I respond to them?