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Self employed tax and national insurance?

BillieTheBotBillieTheBot Posts: 8,721 Bot
I have got another job but I'm thinking of quitting my new one so what I was saying about having two jobs weeks ago, forget it.

Well anyways, this job I've got, its basically where the money gets put into your own account but you have to pay out your own national insurance and tax payments. I have to do it either monthly or every three months apparently. I'm all so very confused. I mean, we get paid into our bank accounts and we get pay slips, why can't our tax and NI contributions be taken out as well? :yeees:

Well anyways, I'm not going to be at this job for long. I'm just going to have it I think until I finish uni for the year and I get a full time job for over the summer which is in about 10 weeks time.

I got told by my employer that I had to inform inland revenue so I could pay my tax and stuff but I'm a student? Will I still need to inform them even though I'm not liable to pay either tax or national insurance?
Beep boop. I'm a bot.

Comments

  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    yeh you definately need to let them know. you're not exempt from tax just because you're a student.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    *Stacey* wrote:
    I'm not liable to pay either tax or national insurance?

    Being a student does not exempt you from income tax and NI.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    if you're workiing a job as well, or will be- you just register as self employed and ask to hold your NI contributions til the end of the year to avoid over paying. Ask them for a guide to being self employed and they can even send you on a free course.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    .
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    i went over the earnings threshold over the summer so i've ended up paying tax for the last few months, it's only a little bit though and there's no reason why anyone should be exempt just because they're a student.
  • **helen****helen** Deactivated Posts: 9,235 Supreme Poster
    Students don't tend to have to pay because normally they don't earn enough just with small part time jobs, but I still don't know why this myth persists that students are exempt.

    They obviously haven't read TheSite's article ;)

    Here's the low down on tax Stacey which covers students :)
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    students do get taxed, im paying 22% for some reason at the moment
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    students do get taxed, im paying 22% for some reason at the moment

    cause they will have your tax code wrong, they probly have you on basic rate by accident
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    students do get taxed, im paying 22% for some reason at the moment

    They won't know your tax code, so you will be on the "emergency" tax code, which is a flat 22%.

    You'll get it back when things get sorted.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Well all this doesn't matter anymore as I've quit after 3 shifts. I hate the job with a passion so I've decided to keep my other job instead because at least I enjoy that one. I was only quitting so I could have more flexible hours. Thanks for all your advice anyways guys.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    I know u have quit, but the job sounded very dodgy to me. If a situation like that comes up again I would have a read of IR56. Everything you said made it sound like you were employed, and therefore the employer has the obligation to deduct the tax & NI. The rules for self employment vs employment are pretty complex. Basically if you are told when and where you are working, and someone else is dictating the pay then you are employed.

    The national insurance thing you mentioned refers to class 2 NIC, which the self employed pay. It's a fixed rate of £2.10 a week for every week of self employment. You can pay this by monthly direct debit, or quarterly on a paper bill.

    Although you are probably below the tax / NI thresholds, techically you should have registered for self employment and kept accounts so your income can be properly assessed.
  • Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    students do get taxed, im paying 22% for some reason at the moment

    Did you complete a P46 or hand in your last P45?

    If not then the employer has to slap you on 22% until they receive an alternative tax code.

    It's too late in the tax year to put it straight immediately, but send your 2005/2006 P60 from that employer to your tax office when you get it, and put in a covering letter listing all your employments during the 2005/2006 tax year. If the tax office need anymore information they will write to you.

    Hope that helps
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