Tax - TSR guide and questions thread Watch

rurounikenji
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Hey guys,

i need some help working my head around the whole tax thing. From my understanding, tax is collected from our paychecks etc automatically via by the employer. Correct me if i am wrong.

I have heard that i can claim back the tax. How do i go about doing that? I worked one time doing some flyering for some company for about 3- 6 months and 3 or 4 years later ( i think), i received a cheque which was my tax refund or something. I was told that you get sent back the tax like 3 or 4 years later, randomly. However, i have also been told that i can claim it back without having to wait. Throughout my time as a student, i have worked part time at places - prob 20 hours max a week. I think i paid tax....Not sure lol. Also, every time i left a workplace, i was sent a p45 form (or something like that). What is that form for?

On my payslip, there is a section that is labelled deductions. In this box, it says that i have paid £192.80 to tax and £35.10 to National insurance. Then underneath this, it shows the total deductions of 227.90 and then the net payment of 736.62. I received 736.62 in my account, so i'm guessing that's after all the deductions have been taken etc. However, i am confused because in the column above, titled year to date totals, it mentions that " tax paid - 251.80". Have i paid that 251.80 as well as the 227.90 total deductions towards tax? Also, how i claim back the tax paid (and which one do i claim? And, can i claim back the National Insurance? I read somewhere that it goes towards pension's or something.

I work in retail and i have to wear a uniform to work. I read somewhere that if you wear uniform, you can claim back tax. Does this apply to those working in retail? And how do i go about doing this?

Sorry for the 21 questions. Free free to correct me if i am wrong. Much appreciated.

Thanks!
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Tiger Rag
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You can't claim back national insurance, unless you've overpaid it.
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Illusionary
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(Original post by rurounikenji)
Hey guys,

i need some help working my head around the whole tax thing. From my understanding, tax is collected from our paychecks etc automatically via by the employer. Correct me if i am wrong.

I have heard that i can claim back the tax. How do i go about doing that? I worked one time doing some flyering for some company for about 3- 6 months and 3 or 4 years later ( i think), i received a cheque which was my tax refund or something. I was told that you get sent back the tax like 3 or 4 years later, randomly. However, i have also been told that i can claim it back without having to wait. Throughout my time as a student, i have worked part time at places - prob 20 hours max a week. I think i paid tax....Not sure lol. Also, every time i left a workplace, i was sent a p45 form (or something like that). What is that form for?

On my payslip, there is a section that is labelled deductions. In this box, it says that i have paid £192.80 to tax and £35.10 to National insurance. Then underneath this, it shows the total deductions of 227.90 and then the net payment of 736.62. I received 736.62 in my account, so i'm guessing that's after all the deductions have been taken etc. However, i am confused because in the column above, titled year to date totals, it mentions that " tax paid - 251.80". Have i paid that 251.80 as well as the 227.90 total deductions towards tax? Also, how i claim back the tax paid (and which one do i claim? And, can i claim back the National Insurance? I read somewhere that it goes towards pension's or something.

I work in retail and i have to wear a uniform to work. I read somewhere that if you wear uniform, you can claim back tax. Does this apply to those working in retail? And how do i go about doing this?

Sorry for the 21 questions. Free free to correct me if i am wrong. Much appreciated.

Thanks!
Yep, by default income tax and National Insurance is collected from employees 'at source', by direct deduction from pay before it's actually received. This is known as Pay As You Earn (PAYE).

Following the end of each tax year (5 April), HMRC perform a reconciliation exercise which should lead to repayments being processed without action for taxpayers with straightforward affairs and employment arrangements; it's not a 'random' repayment after several years, but there is a time lag before the re conciliations will be completed.

PAYE deductions for income tax are calculated on the assumption that you continue earning over the full year, so can lead to overpayment if you earn at a higher rate during a given earlier period, If you cease employment during the year and don't expect to take up another job before the end of the year, you can request a refund of any amounts overpaid from HMRC earlier. Form P50 can be used for this, but it can be as simple as calling HMRC to explain your position so that's worth trying first.

If your income for the year to 5 April 2015 is no greater than £10,600, that should be covered by your 'tax free' personal allowance (assuming no deductions fro that allowance, e.g., for taxable benefits), such that no income tax is ultimately due.

See here for direct.gov's explanation of Form P45, which employers should issue to all employees leaving their employment: https://www.gov.uk/paye-forms-p45-p60-p11d/p45

The "year to date totals" will also include any amounts that have been deducted in earlier pay periods during the tax year, to give a cumulative total.

You're unlikely to be able to reclaim the National Insurance Contributions, as their calculation is done for each pay period in isolation, not with direct reference to an annual threshold. Payment of NICs above a certain threshold gives entitlement to certain state benefits, which yes, income the state pension.

You won't be able to get a deduction for the cost of your uniform in your circumstances (and in any case, did you pay for it or was it provided for you?). Deductions are only typically available for specialist clothing, e.g., of a protective nature. More info: https://www.gov.uk/tax-relief-for-em...hing-and-tools

I'd suggest that you take a look at the LITRG's Tax Guide for Students (link below) in the first instance if you have further questions, but please do also ask if you can't find what you need

http://www.taxguideforstudents.org.uk/



(Original post by OU Student)
You can't claim back national insurance, unless you've overpaid it.
Well, wouldn't that be the expectation of any such payment that you make?

The point that I think you'll be trying to get at is that National Insurance Contributions are (for employees) calculated and payable for each pay period in isolation, rather than with direct reference to an annual threshold - meaning that low annual income wouldn't be a justification for reclaiming contributions relating to a given week/month of higher pay.
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Philbert
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I've just started a PhD and will receive a tax-free stipend, and I also have a fair bit of money saved in high-interest accounts. Will I be able to register for gross interest on my savings accounts, or will I still be taxed on the interest? I don't want to state how much my stipend is, but it's above the minimum of £14k or whatever it is now, if that makes any difference. Cheers.
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Illusionary
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(Original post by Philbert)
I've just started a PhD and will receive a tax-free stipend, and I also have a fair bit of money saved in high-interest accounts. Will I be able to register for gross interest on my savings accounts, or will I still be taxed on the interest? I don't want to state how much my stipend is, but it's above the minimum of £14k or whatever it is now, if that makes any difference. Cheers.
Your taxable income is the key thing here. If you're comfortable that the stipend is tax-free then yes, you should be fine to register with Form R85(S). Your bank should be able to provide a copy, potentially with some details pre-populated for you, but here's a blank copy from HMRC: https://www.gov.uk/government/public...m-6-april-2015

Note that from next April this will no longer be relevant, with bank interest paid gross by default.
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Rakas21
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Been working part time and got a tax code of 0T/1. Is this right, I should be well under the limit.
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Illusionary
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(Original post by Rakas21)
Been working part time and got a tax code of 0T/1. Is this right, I should be well under the limit.
Is this your only job? If yes, the code is almost certainly incorrect. You need to pass your employer their pages of your form P45 from a previous job this year, if you have one, or else complete a starter checklist to provide equivalent information (link).
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Reality Check
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(Original post by Rakas21)
Been working part time and got a tax code of 0T/1. Is this right, I should be well under the limit.
No, there's a problem there unless you've been grossly underpaying tax in previous years!
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Rakas21
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(Original post by Reality Check)
No, there's a problem there unless you've been grossly underpaying tax in previous years!
Got is sorted early in the year.
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Reality Check
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(Original post by Rakas21)
Got is sorted early in the year.
Sorry - just seen the date of your post! Glad it's sorted, anyway.
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Quady
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Any ideas how as a worker under PAYE I claim back interest deducted at source within my Personal Savings Allowance?
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Maddz
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Hello can anyone advise me on .....!?
Got a job over summer break, I'm staying with friends over the summer as it's local to the job. I'm an independent student so I have no "home" (parental) address. Is it ok to give tax office my uni address?
Now, if anyone has any further questions, fire away! [/QUOTE]
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EVIEG
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Really glad I came across this thread, super useful information regarding taxes, which is exactly what I've been searching for help with lately as I've had a couple of issues to resolve. I'd also like to share a really great website I came across the other day, I had to do some calculations regarding my take-home pay after taxes (I'm a secondary school teacher). I used this tax calculator: https://www.income-tax.co.ukAllows you to do some really useful things, simple to use and saved me a huge headache! Hope everyone else finds it useful
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