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why am i getting taxed so much please help

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
im 16 and am in full time education still ( college).

i have two part time jobs as i had NO money before( not even bus money into town, so these jobs are really making my life easier).

i work 2 hours a day=10 hours a week at my cleaning job, at £5.80 an hour.
i work 3/4 hours a day=11 hours a week at my waitressing job, at £4.00 an hour.

now i keep getting letters through the post telling me to fill in a form about how many jobs i have and what i earn. my dad told me not to tell them about both jobs as il get taxed more.
so ive sort of ignored them until i can figure out what to do.

but then this morning i got a letter in the post from inland revenue telling me my tax code and that i will be taxed 22% of all my wages.

this seems a HUGE amount for the amount i earn.
can someone please tell me if this is correct ( and so i should just accept the tax system) or if this is too much? what is the law on taxes, as my dad said you have to be earning at least £5000 a year before you get taxed.

please help,
love a money-less Scarlet.x

Comments

  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    my dad told me not to tell them about both jobs as il get taxed more.
    I'm pretty sure thats illegal!
    It is true you have to be earning so much a year before you start getting taxed but chances are you are doing. The amounts you earn in a year that you get taxed on will not be the actual amounts you earn but will be averaged out to estimate how much you are likely to earn in a year (april to april)
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    You need to fill in the forms and tell them about everything so you get taxed right.

    Then you'll get a tax code. You pay tax at fixed rates depending on your annual income. You get an 'personnal allowance' which is usually just over £4000 a year, on which you pay no tax. Fill in your 'I'm in full time education' form, and the other ones and send them back. Assuming you're on a payroll you'll then start having any tax you do have to pay deducted from your wages.

    With that income you probably won't have to pay any, but as you haven't told the IR anything they have made some assumptions. Payroll at one of your jobs should be able to help too.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    The form is for your benefit, not HMRC's.

    If you don't tell them what you are working then they cannot assign you a tax code, and you will therefore be taxed at emergency rate, which is a flat 22%.

    You will get overpayments refunded after April, but it is important that you tell HMRC what your jobs are, so they can give you the right tax code. You should be filling out a P46 for your main job so that your tax-free allowance of £88 a week can be taken into account.

    You're getting charged emergency tax because HMRC don't know which job your main one is, and they don't know who your employers are. They will eventually find out, but its important to tell them, because they do take their time about it.

    There isn't any criminal comeback on not filling out the form, but its in your interest not theirs.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    my cousin was on emergancy pay and he didnt even know then he got a big fat cheque with all his money back later that year, fill them out.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    im 16 and am in full time education still ( college).

    i have two part time jobs as i had NO money before( not even bus money into town, so these jobs are really making my life easier).

    i work 2 hours a day=10 hours a week at my cleaning job, at £5.80 an hour.
    i work 3/4 hours a day=11 hours a week at my waitressing job, at £4.00 an hour.

    now i keep getting letters through the post telling me to fill in a form about how many jobs i have and what i earn. my dad told me not to tell them about both jobs as il get taxed more.
    so ive sort of ignored them until i can figure out what to do.

    but then this morning i got a letter in the post from inland revenue telling me my tax code and that i will be taxed 22% of all my wages.

    this seems a HUGE amount for the amount i earn.
    can someone please tell me if this is correct ( and so i should just accept the tax system) or if this is too much? what is the law on taxes, as my dad said you have to be earning at least £5000 a year before you get taxed.

    please help,
    love a money-less Scarlet.x

    Hiya. I work for HMRC and dish out these forms for a past time. You have been sent that form because HMRC know where you are working but suspect you are paying too much tax. They don't have any previous record for you and therefore have to assume your personal allowance has been used elsewhere, especially as you have 2 jobs.

    The tax free personal allowance and subsequent rate bands are spread over the 52 weeks in the tax year (April 6th to April 5th) Please just fill the form in in and don't leave any gaps from the date they specify. You are only earning about £102 a week which means your total tax bill for a whole year will be about £26.90, taking into account both your employments and assuming you have worked at both for a full year. Once that form is in they can look at your income and split your tax code between your two jobs and you will even get a repayment via your wages.

    I can see where your Dad is coming from, usually most people use up all of their £5035 at their main job, and therefore any second job is taxed at 22%. You aren't even touching the 22% rate band so don't worry and put both on the form.

    If you need any help give me a PM.
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