Do I need to pay tax?

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nicolegrace1207
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I’m working full time from now until September, earning £1200 a month, will I need to pay tax?
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cleveranimal56
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Probably, can't you check this on gov.uk or something?
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GabiAbi84
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Yes. And if at the end of the year you haven’t earned over the threshold then you will get a tax rebate.
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Theloniouss
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At £1200/month you're slightly above the income tax threshold, so you'll be paying some (about £30/month). If you earn less than £12,579 in a year, you don't pay any income tax so you'll get all of that refunded. You will have to pay NI though (which is taxed by pay period rather than annually), and that will be about £50/month.
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nicolegrace1207
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(Original post by Theloniouss)
At £1200/month you're slightly above the income tax threshold, so you'll be paying some (about £30/month). If you earn less than £12,579 in a year, you don't pay any income tax so you'll get all of that refunded. You will have to pay NI though (which is taxed by pay period rather than annually), and that will be about £50/month.
I won’t be earning over £12579 tho as I’m only working until September, so it’s not a full year of working. Do they take this into account or will I still have to pay tax?
Edit : just saw that you said they’ll refund me, is it not easier for me to just not pay the tax if it’s gonna come back to me anyway?
Last edited by nicolegrace1207; 1 month ago
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Theloniouss
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(Original post by nicolegrace1207)
I won’t be earning over £12579 tho as I’m only working until September, so it’s not a full year of working. Do they take this into account or will I still have to pay tax?
Yeah, like I said - if you earn less than £12579 in a year (which you will be), they refund all of the tax after the end of the financial year. I think you can also contact HMRC and get a refund sooner.

Because tax is paid by your employer directly via PAYE, you can't not pay tax even if you're going to earn less than the threshold.
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threeportdrift
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(Original post by nicolegrace1207)
I won’t be earning over £12579 tho as I’m only working until September, so it’s not a full year of working. Do they take this into account or will I still have to pay tax?
It doesn't matter, HMRC/the taxman assumes jobs are full time and permanent, because most are. They don't know the specific details of every job contract. So you will probably pay tax through PAYE (pay as you earn) ie it will be taken off your total monthly pay before the rest goes into your bank account.

You then have 2 choices - you ring HMRC and tell them the specific details of your job and they will change your tax code and you won't get taxed (save NI maybe), or you wait until the end of the tax year (April) and they will rebate you what you have over-paid.
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martin7
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(Original post by nicolegrace1207)
I’m working full time from now until September, earning £1200 a month, will I need to pay tax?
If you have a P45 from a previous job, hand it in. The P45 states your tax code, and how much you've earned and how much tax you've paid so far this tax year. Your employer should then tax you correctly, and you won't overpay.

If you don't have a P45, your employer should ask you to complete a "new starter check list". They'll probably need to check with HMRC to find out what tax code to use, but if you're working there till September, it's likely they can get you on the right tax code anyway. You might end up paying some tax, but not as much as you might otherwise do.

If you do end up paying too much tax, it will get refunded later.

Bear in mind that you'll be paying National Insurance too, and that's calculated per pay period. Unless your employer has somehow calculated that incorrectly, you won't get any of that back.
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nicolegrace1207
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(Original post by threeportdrift)
It doesn't matter, HMRC/the taxman assumes jobs are full time and permanent, because most are. They don't know the specific details of every job contract. So you will probably pay tax through PAYE (pay as you earn) ie it will be taken off your total monthly pay before the rest goes into your bank account.

You then have 2 choices - you ring HMRC and tell them the specific details of your job and they will change your tax code and you won't get taxed (save NI maybe), or you wait until the end of the tax year (April) and they will rebate you what you have over-paid.
Ohhh, so the tax comes out of my monthly wage? I thought I would get my full wage then have to pay the taxes myself ( I’ve never had a job in my life lol)

Would you say it’s easier to call up the HMRC or to just wait till they rebate it.
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nicolegrace1207
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(Original post by martin7)
If you have a P45 from a previous job, hand it in. The P45 states your tax code, and how much you've earned and how much tax you've paid so far this tax year. Your employer should then tax you correctly, and you won't overpay.

If you don't have a P45, your employer should ask you to complete a "new starter check list". They'll probably need to check with HMRC to find out what tax code to use, but if you're working there till September, it's likely they can get you on the right tax code anyway. You might end up paying some tax, but not as much as you might otherwise do.

If you do end up paying too much tax, it will get refunded later.

Bear in mind that you'll be paying National Insurance too, and that's calculated per pay period. Unless your employer has somehow calculated that incorrectly, you won't get any of that back.
I’ve never worked in my life, this is my first job and I’m just trying to save up for university. This whole taxes thing is really stressing me out as I don’t want to do it wrong and then have to pay it later in the year whilst at university.
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martin7
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(Original post by nicolegrace1207)
I’ve never worked in my life, this is my first job and I’m just trying to save up for university. This whole taxes thing is really stressing me out as I don’t want to do it wrong and then have to pay it later in the year whilst at university.
If your only income is from having a job, then tax is really straightforward. Your employer deducts the tax from your pay using a system called PAYE (pay as you earn) and passes it directly to HMRC.
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threeportdrift
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(Original post by nicolegrace1207)
Ohhh, so the tax comes out of my monthly wage? I thought I would get my full wage then have to pay the taxes myself ( I’ve never had a job in my life lol)

Would you say it’s easier to call up the HMRC or to just wait till they rebate it.
No, the employer takes out the income tax and national insurance (and student loan) first, and they just pay you the remainder - it's called PAYE.

It depends really if you can get by with the tax taken out and want to use it like a savings until after the tax year, or whether you want as much money as possible as soon as possible.
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nicolegrace1207
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(Original post by threeportdrift)
No, the employer takes out the income tax and national insurance (and student loan) first, and they just pay you the remainder - it's called PAYE.

It depends really if you can get by with the tax taken out and want to use it like a savings until after the tax year, or whether you want as much money as possible as soon as possible.
Ah thank you! Also, Idk if you know the answer to this question but will working now affect my student finance? My mum is low income and I am entitled to the full amount of maintenance loan, however I’m scared that if I work from now until I go to university, that I’ll be entitled to a lower amount?
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threeportdrift
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(Original post by nicolegrace1207)
Ah thank you! Also, Idk if you know the answer to this question but will working now affect my student finance? My mum is low income and I am entitled to the full amount of maintenance loan, however I’m scared that if I work from now until I go to university, that I’ll be entitled to a lower amount?
So work out how much you will earn before you finish the job, add it to the income your Mum gets and see if it is more than the threshold for the full maintenance loan. I doubt it will be.
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IWMTom
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(Original post by nicolegrace1207)
Ah thank you! Also, Idk if you know the answer to this question but will working now affect my student finance? My mum is low income and I am entitled to the full amount of maintenance loan, however I’m scared that if I work from now until I go to university, that I’ll be entitled to a lower amount?
Your income from working doesn't contribute towards the household income figure you'll give to SFE.
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