tax Watch

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James_W
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#1
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If someone is on a temp contract, £5 an hour, 7 hour days - how much of that is taxed?
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ruthiepoothie
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(Original post by James_W)
If someone is on a temp contract, £5 an hour, 7 hour days - how much of that is taxed?
it depends how much you have earn't since april

why, are you being taxed?
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James_W
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i've earnt ****all since april..... but i just started a job (im under 18)
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kikzen
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(Original post by James_W)
i've earnt ****all since april..... but i just started a job (im under 18)
you should not have to pay tax (you can claim it back)
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ruthiepoothie
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(Original post by James_W)
i've earnt ****all since april..... but i just started a job (im under 18)
well....

basically over a year from april to april you get a tax free allowance of around £4000...this is what you are allowed to earn before paying any tax. In the records at the inland revenue, you will have a tax code...this is what your employers will use to know how much tax to take off your earnings. They shouldn't take any tax from you until you have reached your tax free amount (after you have earn't £4000..) then you will be in the bottom tax bracket which i think is around 10% but i'm not sure.... However, if your employers have not yet got your tax code, they may use an emergency tax code, which means they will tax you at around 20% until they get your proper tax code- but don't worry- if they do this you will get the money back when they sort your tax codes out.

Hope this makes sense...

Ruthie xx
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jpowell
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Tax isn't calculated weekly, it is calculated yearly. The personal allowance for the next tax year is £4 745, so as long as you earn less than that you will not be taxed. Then the next £2 020 is taxed at 10% then £2020-31 400 is taxed at 22% and anything above that is taxed at 40%.
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James_W
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So on a temporary contract.. being on a contract for £5/hour - I will not be taxed?
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James_W
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By the way, I was hoping for money quickly - which is why I don't want to have to claim it back at the end of the year
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dave134
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(Original post by James_W)
So on a temporary contract.. being on a contract for £5/hour - I will not be taxed?
Probably lose 20% in tax.

Once you finish, you will get a P45, which you can send off to the revenue with a covering letter and they will send you back the tax.

You will also have National Insurance deducted, that is not repayable however.
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jpowell
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(Original post by James_W)
So on a temporary contract.. being on a contract for £5/hour - I will not be taxed?
How long is the contract? And the best thing to do would be to ask your temp agency for details.
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PQ
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fill in this form http://www.inlandrevenue.gov.uk/forms/p38s.pdf and get your employer (the agency) to send it off to the inland revenue - then you won't be taxed and should get a refund in your pay packet...
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chats
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i'm quitting work in september, i earnt less than £4500 and got taxed. do i have to wait till next april to claim back my tax?
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PQ
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(Original post by chats)
i'm quitting work in september, i earnt less than £4500 and got taxed. do i have to wait till next april to claim back my tax?
If you were only working for the holidays then you should have filled out the above form...you could try filling it out now and trying to get it sorted before your final pay packet but most likely you'll have to wait until april.
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dave134
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(Original post by chats)
i'm quitting work in september, i earnt less than £4500 and got taxed. do i have to wait till next april to claim back my tax?
I managed to claim tax back just with a P45 as soon as I finished.

If you then earn anything else you will probably need to sort all the figures out via Self-Assessment.

Edit: PQ is right to point people to the P38S. That is the one I think dedicated to students with the P38 being a seperate form for non-students in a similar position.
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chats
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(Original post by Pencil Queen)
If you were only working for the holidays then you should have filled out the above form...you could try filling it out now and trying to get it sorted before your final pay packet but most likely you'll have to wait until april.
oh ok thanks. when i come to think about i may get a job again in january and that may make my earnings go over £4500 so i'll just wait till april.
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PQ
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(Original post by chats)
oh ok thanks. when i come to think about i may get a job again in january and that may make my earnings go over £4500 so i'll just wait till april.
£4,745 according to the form linked....so you might be ok.
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chats
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sorry last question. when they say you're allowed earnings of £4615 that you dont get taxed on do they mean the amount you have made in the year after or before you were taxed?
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PQ
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(Original post by chats)
sorry last question. when they say you're allowed earnings of £4615 that you dont get taxed on do they mean the amount you have made in the year after or before you were taxed?
for April-April:

2003-04 (£): 4 615

2004-05 (£): 4 745
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chats
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(Original post by Pencil Queen)
for April-April:

2003-04 (£): 4 615

2004-05 (£): 4 745
i mean for example i made £6000(net), and that worked out £4500(gross) then would i get tax back?
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PQ
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(Original post by chats)
i mean for example i made £6000(net), and that worked out £4500(gross) then would i get tax back?
No the allowances are for gross pay - ie before any tax (the larger figure - I think you have gross and net mixed up)

on £6k you would pay no tax on the first £4745 then 10% on the rest (up to £6765) so 6000-4745=1255...10% of that = £125.50pa

http://www.inlandrevenue.gov.uk/students/taxandu.pdf
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