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Full-time student/Tax

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
I'm 17, I'm a full-time student and I work part time.

I've been paying tax/national insurance the past few months. I thought this was because of how much I've earned this tax year. However, today I was told that because I'm a full-time student, I shouldn't pay any tax regardless of how much I've earnt.

True or false?

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    As far as I know, you have an upper limit to the amount you can earn, even as a student (I think it's around £5k or £6k). After that, you start having to pay tax on it.

    I'll double check and let ya know.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    i beleive Chem:Lab is right, even though I am a full time student i have been assesed and have a tax allowance of roughly £4500 so i will only get taxed on any earnings above that

    I will never be taxed on any of the £4500 though (having said that i am unemployed at the moment so am not earning anything at the mo :p)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Everyone, irrelevant of status gets a Personal allowance, and this varies from person to person. The current basic rate is £4895, you pay 10% on the next £1,920 for income tax, 22% on the next £27,980, 40% above this. You will also pay National Insurance at 11%, on the amount after your Personal Allowance.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Panthro wrote:
    Everyone, irrelevant of status gets a Personal allowance, and this varies from person to person. The current basic rate is £4895, you pay 10% on the next £1,920 for income tax, 22% on the next £27,980, 40% above this. You will also pay National Insurance at 10%, on the amount after your Personal Allowance.

    :yes:

    the tax allowances are slightly different for married couples, but other than that, i'm pretty sure they're the same for everyone.

    the reason most students don't pay tax is because they earn below the tax free allowance. if you earn over, you're taxed.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Also if differs if you are over 65, 75, if you are registered disabled......but yeah most people are on the basic allowance
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Panthro wrote:
    You will also pay National Insurance at 10%, on the amount after your Personal Allowance.

    I thought you always paid national insurance, regardless of personal allowance? :confused:
    Does that mean I'll get my national insurance back with my tax for this past year?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Okie dokie, thanks for clearing that up. I thought that was how it worked, but just wanted to check. :)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kate1, you do not get refunded any "overpayment" in NI contributions, as every penny you contribute goes towards your pensions and JSA entitlements. If you are charged too much for your earnings, then tough.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kate1 wrote:
    I thought you always paid national insurance, regardless of personal allowance? :confused:
    Does that mean I'll get my national insurance back with my tax for this past year?

    You wouldn't normally have paid NI on the first £4895, although if you did you can claim it back - mistakes can be refunded.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    You pay NI on the amount you earn each week if it is over a specific amount is how I thought it worked. But no you can't claim NI payments back, just overpayed tax.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kazbo wrote:
    You pay NI on the amount you earn each week if it is over a specific amount is how I thought it worked. But no you can't claim NI payments back, just overpayed tax.

    Unless they were mistakely takem from you ;)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Panthro wrote:
    Unless they were mistakely takem from you ;)
    Not even then. Any overpayments are not refunded.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Yeah, I just claimed my tax back, having earnt less than £4400 quid, all £85 of it. That makes me marginally less poor. Yay!

    You can only reclaim from the previous tax year (April 2004-2005) unless you make a statement saying you'll not be working until the current tax year finishes. Ask your current employer for the number of their tax office, give them a call, they'll talk you through it. It's likely they'll want any P60 and P45 forms you've been issued. If you don't have them then your employer can write you a statement of earnings.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    "Not even then. Any overpayments are not refunded."

    "...the refund of National Insurance Contributions which have been paid by mistake or in excess of the annual maximum limits."

    From the Inland Revenue themselves.... :razz:

    ETA:

    Here is the address if you are looking for a NI refund:


    Refunds Group
    Inland Revenue National Insurance Contributions Office
    Benton Park Road
    Longbenton
    Newcastle upon Tyne
    NE98 1ZZ
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Lil Laura wrote:
    I'm 17, I'm a full-time student and I work part time.

    I've been paying tax/national insurance the past few months. I thought this was because of how much I've earned this tax year. However, today I was told that because I'm a full-time student, I shouldn't pay any tax regardless of how much I've earnt.

    True or false?

    Everyone is liable to pay tax if they earn over their personal allowance. I hate it when people say to me "I'm a student so I don't have to pay tax" There are some provisions in place for students working in the holidays only (form P38s) , but if they earn over their personal allowance then they pay tax like everyone else.

    Kaffrin - Married Couples Allowance / Additional Persons Allowance was abolished in 1999/2000 for the majority of people, and replaced by Child Tax Credit. Married Couples Allowance now only exists for married couples born before 1935.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kermit wrote:
    Kate1, you do not get refunded any "overpayment" in NI contributions, as every penny you contribute goes towards your pensions and JSA entitlements. If you are charged too much for your earnings, then tough.

    Except it doesnt at all, it goes to other peoples pensions and we keep our fingers crossed and hope there will be a pension for us when we get there.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Aye, exactly bongbudda does speak the truth. The rise from 10 to 11% last year was to pay for increased NHS funding. Not all NICs go to pensions.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Which is the complete mockery of the whole system, we hand over our money and just trust there is some when we get old.

    NI contributions shouldn't be spent on the NHS or other tax things, they should be purely pensions, but raising income tax is unpopular so they just raise NI instead.
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    In summary:

    EVERYONE under the age of 65 who is fully able must pay tax on anything they earn over £4750(ish) [this amount changes from year to year]
    If you earn over £92 a week [subject to changes] you will be charged 11% National Insurance on everything you earn over this amount.
    If you overpay tax, you WILL get a refund.
    If you overpay National Insurance, you will NOT get a refund easily, it's very difficult to get :no:
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Kath2003 wrote:
    In summary:

    EVERYONE under the age of 65 who is fully able must pay tax on anything they earn over £4750(ish) [this amount changes from year to year]
    If you earn over £92 a week [subject to changes] you will be charged 11% National Insurance on everything you earn over this amount.
    If you overpay tax, you WILL get a refund.
    If you overpay National Insurance, you will NOT get a refund easily, it's very difficult to get :no:


    Everyone regardless of age is liable to pay tax when they exceed their personal allowance. The basic personal allowance is £4895 for 2005/2006 for those under 65yrs of age. Your tax code is personal to you and it may differ to your friend's tax codes. For example you may have underpayments coded out or you may be in receipt of Benefits in Kind which will reduce your personal allowance.

    Once you reach the age of 65 you can claim Age Related Allowances. Your tax code may increase depending on your level of income.

    With National Insurance it depends on the class of National Insurance you are trying to reclaim. You pay different classes of National Insurance on different types of income (e.g Self Employment - class 2 and 4, employment class 1 & 1a). You also pay different percentages of National Insurance based on whether you are contributing to a works pension scheme. Some classes are more easily refundable than others.

    Sorry to be pedantic. I've been dealing with peoples tax myths all day and it's starting to get to me. :crying:
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    spanner wrote:

    That fact sheet gives the 2003/2004 basic personal allowances!! It's 2005/2006 now ;)
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    is it on what you've earnt ever, or wat you've earnt since you became a student?

    also i get a bursary from the nhs for my course which i dont get taxed on, so should i have had to have earnt £4000 from my job before i get taxed? or will the money i earnt before i became a student be counted too?
  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    is it on what you've earnt ever, or wat you've earnt since you became a student?

    also i get a bursary from the nhs for my course which i dont get taxed on, so should i have had to have earnt £4000 from my job before i get taxed? or will the money i earnt before i became a student be counted too?

    Being a student has nothing to do with it really. The tax year starts on 6th April every year, and you get a clean slate. If your NHS bursary is non-taxable then no it doesn't count towards your taxable income. You will have a tax code that is operated on any employment income you have which will ensure you pay the right amount of tax. The tax code splits your personal allowance over 52 weeks of the year, so no, you don't earn £4895 and then start paying tax. You get approx £92 a week tax free and then you pay tax according to the rate bands on the remainder of your pay. It's too complicated to explain tax tables, PAYE and wk1 codes on here, but I hope you get the gist of what I'm on about. :)
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