Can I opt out of PAYE?

I’m working at a warehouse just to save money for the summer and I know I won’t earn over £12000 this year, is there anyway I can stop them from deducting tax from my weekly pay?

Reply 1

artful_lounger

Universities Forum Helper

You shouldn't get taxed while PAYE unless you are earning enough to get taxed. If you do get taxed, but earn less in the whole year than you should've been taxed for, then you should get this reimbursed by HMRC at some point.

In any case, you probably won't be allowed to opt out of being PAYE if you were hired as a PAYE employee (rather than a self-employed contractor).Also being PAYE, even if you have to be repaid the taxed amounts later (assuming you are taxed incorrectly) is still probably easier than being technically self-employed and having to declare your own income etc to HMRC yourself.

Reply 2

threeportdrift

Careers Forum Helper

Original post by Hisksjd

I’m working at a warehouse just to save money for the summer and I know I won’t earn over £12000 this year, is there anyway I can stop them from deducting tax from my weekly pay?

PAYE isn't the issue, you are simply on the wrong tax code. Phone HMRC and tell them you are on a fixed term contract and ask for them to adjust your tax code. Be careful though, the limit isn't about this job, it's about everything you earn up until April 6th 2022, so think about anything else you may earn in that period.

Reply 3

Hisksjd

Original post by threeportdrift

The job isn’t exactly a fixed contract but i know i will be quitting at the end of the summer, it’s weekly pay but they’ll deduct PAYE from my wages each week

Reply 4

Hisksjd

Original post by artful_lounger

The job is weekly pay so i get taxed each week over the threshold weekly amount but I’d rather them not take the money at all than wait almost a year to get it back

(edited 2 years ago)

Reply 5

Muttley79

Original post by Hisksjd

The job is weekly pay so i get taxed each week over the threshold weekly amount but I’d rather them not take the money at all than wait almost a year to get it back

https://www.gov.uk/tax-codes

Your tax code is wrong because you've just started - get in touch with HMRC

Reply 6

mathperson

Original post by Hisksjd

I’m working at a warehouse just to save money for the summer and I know I won’t earn over £12000 this year, is there anyway I can stop them from deducting tax from my weekly pay?

You will get this tax back as a rebate, so don't worry.
Only thing worth checking is that you're not paying "emergency tax".

Reply 7

threeportdrift

Careers Forum Helper

Original post by Hisksjd

The job isn’t exactly a fixed contract but i know i will be quitting at the end of the summer, it’s weekly pay but they’ll deduct PAYE from my wages each week

You are focussing on the wrong thing. PAYE is the mechanism by the way tax is taken. There is zero chance of getting out of this unless you are self employed or a company director etc.

Your issue is that you are paying too much tax

That is because HMRC as a matter of routine (because the majority of jobs work this way) assumes that everyone’s job is full time and permanent. This means most people appear to earn over the tax threshold and so need to pay tax. This system means that people are far more likely to get a tax rebate at the end of the year than a large tax bill.

If you don’t want to wait until the end of they tax year to get a rebate, then you have to ring up HMRC and give them the details of your job. They will then change your tax code and less or no tax will be taken.