I'm not sure if i'm being taxed correctly

Former Member

Basically I started a new job in September and I've been being taxed since then. In my previous job I wasn't taxed (I earned less because I had less hours but I'm not sure if that makes any difference).

My tax code for my current job is '0T W1'.

I'm 20 years old and a student.

Can anyone give me advice about how much tax I should be paying. I'm only really asking because my mum told me she thinks I'm being taxed more than I should be.

Former Member

Being a student is irrelevant.

http://taxaid.org.uk/situations/employee/form-p46#high_1 according to the bottom of that page, your employer may not have enough information to complete a P46 for you. You may need to ask to fill one in.

Former Member

Ok thanks. I'll see what my boss says.

Former Member

Looking at the following website might help you out
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/IncomeTax/Taxcodes/DG_078568

There is a myth that students are tax exempt, which is a lie. More often than not students dont pay tax because they don't work enough hours to earn more than the threshold.

The normal amount you can earn per year without paying income tax is £7475, except you don't earn that much in a year and start paying tax, they split it up into monthly (divided by 12) or weekly (divided by 52), so that works out at around £143 a week before you start paying tax. If it turns out that by the end of the year you have earned less than the £7475, you can claim your tax back, but usually with the PAYE scheme that is operated by many company payrolls, your tax liability will level out over the rest of the year.

Former Member

It's nothing to do with hours either. It's because they generally don't earn enough.

Former Member

Melian wrote: »

It's nothing to do with hours either. It's because they generally don't earn enough.

It is to an extent, student studying tend not to be able to work enough hours to therefore earn enough to push them over the threshold.

You say its nothing to do with hours, like you think there isnt a link between the amount of hours you work and the amount you earn.

Former Member

G-Raffe wrote: »

It is to an extent, student studying tend not to be able to work enough hours to therefore earn enough to push them over the threshold.

You say its nothing to do with hours, like you think there isnt a link between the amount of hours you work and the amount you earn.

It's not. If you work 16 hours at minimum wage, you won't get taxed. But if you work 16 hours at £10 an hour, you will get taxed.

Your last sentence makes no sense at all.

Former Member

Im saying that because of the pressures of study, students tend to do less hours than a full time job. It doesnt matter how much you get paid in the world, if you are on an hourly rate and you work less hours, you earn less. Thats what I was on about.

I dont think its an unfair generalisation to make that students generally don't earn over the threshold because of the small numbers of hours they do. Yes you are correct Melian and I'm sorry that my argument is based on pedantics here. Please forgive me.

However at whatever hourly wage a student earns, if they dropped out of study and worked a lot more hours, fair to say that are more likely to start paying tax, or pay more if it.