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Should I be paying tax at my age with the amount I earn? watch

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    Hi Everyone

    I started doing paper round in September 2012 at the age of 14 and I started to earn around £80 per month (increasing to £108 after a few months since I took on extra work).

    I work every day of the year (apart from Christmas) for roughly 1hour-1hour and a half on each weekday and 2-3hours per weekend day.

    I turned 16 not too long ago (9th May) so I knew that there would probably be some stuff that I'd have to pay for.

    I thought about tax, but I thought that you had to earn x amount of money before you were eligible to pay tax.

    I am in full time education and I will be entering Sixth Form.
    I earn £108 per month, but I received my first pay slip yesterday which had a "tax deduct." of 20% (£21.60) leaving me with £86.40. Should I be paying tax?

    Regards,
    Jared.

    Edit1: I'm on the Pay As You Earn scheme if that makes any difference.
    Edit2: Tax code is: OT M1
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    (Original post by JaredzzC)
    Hi Everyone

    I started doing paper round in September 2012 at the age of 14 and I started to earn around £80 per month (increasing to £108 after a few months since I took on extra work).

    I work every day of the year (apart from Christmas) for roughly 1hour-1hour and a half on each weekday and 2-3hours per weekend day.

    I turned 16 not too long ago (9th May) so I knew that there would probably be some stuff that I'd have to pay for.

    I thought about tax, but I thought that you had to earn x amount of money before you were eligible to pay tax.

    I am in full time education and I will be entering Sixth Form.
    I earn £108 per month, but I received my first pay slip yesterday which had a "tax deduct." of 20% (£21.60) leaving me with £86.40. Should I be paying tax?

    Regards,
    Jared.

    Edit1: I'm on the Pay As You Earn scheme, if that makes any difference.
    Age/education status etc makes no difference to whether you pay tax, but with the amount you earn, no, you shouldn't be paying tax. 20% is your emergency tax rate, so sounds like they're missing something or some forms haven't been filled in. You're best to ring HMRC and ask them to change your tax code. They may need some extra info from you, but you'll get your tax back eventually.
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    (Original post by JaredzzC)
    Hi Everyone

    I started doing paper round in September 2012 at the age of 14 and I started to earn around £80 per month (increasing to £108 after a few months since I took on extra work).

    I work every day of the year (apart from Christmas) for roughly 1hour-1hour and a half on each weekday and 2-3hours per weekend day.

    I turned 16 not too long ago (9th May) so I knew that there would probably be some stuff that I'd have to pay for.

    I thought about tax, but I thought that you had to earn x amount of money before you were eligible to pay tax.

    I am in full time education and I will be entering Sixth Form.
    I earn £108 per month, but I received my first pay slip yesterday which had a "tax deduct." of 20% (£21.60) leaving me with £86.40. Should I be paying tax?

    Regards,
    Jared.

    Edit1: I'm on the Pay As You Earn scheme, if that makes any difference.
    Jared,

    I'm not an expert so hopefully someone can clarify but I assume this is the first year you've worked? You're probably on an emergency tax system for one year until they figure out your yearly income.

    Right now you can earn up to £10,000 between May 2014 until May 2015 and you won't be taxed on that. Anything over than then you will be taxed 20% on anything above (but not including) £10,000.

    You're in an interim stage so as of the next financial year (end of April 2015) you should have your tax gifted back to you because you're earning below the threshold.

    Can I just ask when you started your job?
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    No you should not. You are a long, long way off from paying tax if you are earning £108 per month.

    You need to earn £10,000 per year (£833 per month) to have to pay tax.

    It doesn't matter if you are on PAYE. You need to talk to whoever handles your wages. You'll probably have to wait until the end of the tax year (2015 April/May) for HMRC to refund your overpaid tax.
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    No, you should not be taxed. There is a £10,000 personal allowance before you start paying tax. Call HMRC and get them to change your tax code, and you should be refunded your excess tax payments.

    Oh, I wish I was only paying 20% income tax. *daydreams*
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    As others have said, you should not pay tax as you earn less than £10,000. You are on the wrong tax code. The easiest way to correct it is to call HM Revenue and Customs and explain your circumstances. You will need your National Insurance Number and ideally the details on your payslip to speed things up. They will write to your employer with your new tax code and the tax you have paid should be reimbursed to you via your employers PAYE system (ie in your next paypacket). HMRC contact details are below. If you would rather email HMRC follow this link:

    http://www.hmrc.gov.uk/incometax/ema...code-wrong.htm


    otherwise, the contact number is:

    8.00 am to 8.00 pm, Monday to Friday
    8.00 am to 4.00 pm SaturdayTel: 0300 200 3300
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    Did you hand in a P45 / fill in a P46 when you started? You'd only get a P45 if you've left a job.
 
 
 
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