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Tax
BillieTheBot
Posts: 8,721 Bot
I've been in my new job for about a month and a half now. In the first week or two, I got emergency taxed so I handed in my P46. Since then, I've not got taxed at all. I realise that for the first few weeks this may have been because they were returning the extra tax that was taken off me However, its gone beyond that now and I'm a little confused as to why I'm not getting taxed at all. I'm getting my national insurance taken off me.
This has been my first job since April (the new tax year). Do they let me earn my £5000 (or whatever it is) before they start taxing me again or something? Should I ring them up and ask them? I don't wanna get landed with some massive tax bill when they realise!
This has been my first job since April (the new tax year). Do they let me earn my £5000 (or whatever it is) before they start taxing me again or something? Should I ring them up and ask them? I don't wanna get landed with some massive tax bill when they realise!
Beep boop. I'm a bot.
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Comments
Its based on what you are expected to earn over the tax year, I presume you are expected to earn more than £5k in the year, ergo you should be taxed. What the tax office should do if you are in a full time job is calculate what you would earn if you carried on earning this for the full year and then tax you based on that.
Or at least I'm fairly sure thats how it works.
They assume you'll earn the same each week/month.
They then divide your allowance by a years worth of weeks/months and tax what you earn in a week/month that is over your allowance.
That's my understanding of it as well. And then if you don't earn £5k they give you all the money that they've taken away back
Students DO get taxed in their holidays, unless they arrange with HMRC and the employer that they will not earn over the lower earnings threshold (currently about £87 per week).
If you're not being taxed it could be because your tax code has changed to reflect the overpaid tax, but you should contact HMRC and find out why.
What Scary and Budda said. Tax allowances are based on what you should earn over the year in full. Give HMRC general advice line a call Numbers if you still need it You need your NI number and your Employers PAYE refernce (whoch if you explain to Payroll they should be happy to provide)
Your current tax code should be on your payslips (I'm assuming your paid weekly) It should be 522L but might have a different number. If it NT then the Revenue have told your Employer not to tax until further notice.
Freeallangels - we don't issue NT codes anymore and generally wouldn't have done to students anyhow - they tend to say they are working in the summer holidays only then carry on afterwards into term time - end up owing tax then they come whinging to me that they are students and don't pay tax :banghead: What we do now ask for estimated incomes from each employment and split your allowances between the two employments. Underpayments come about far too easily once you have given the employer authority to pay someone without taking any tax.
I had this problem once, and then had to explain to the person involoved that they did have to pay tax. I dont know where the "Students dont have to pay income tax" comes from, but its bull. And makes me want to hurt people when they say it as gospel
Oh yes...I think I hear it at least 10 times a day! Especially now the holidays are here. They turn up at my office, usually with their mums for some reason. It amazes me that these people have got into university, but are unable to complete a fairly simple form or remember where they have worked in the last year. Grrrrr.
The rest of the students at work aren't getting taxed this summer, and our payroll people are quick to hunt down the students and point out that they are unlikely to have to pay tax so fill in this ere form quick.
If a reasonable number of places do that, or that news gets around then you can see where the idea comes from. I suspect that very few students actually hit the tax threshold, so that will be where the idea comes from.
I rang up the tax office today and they told me that despite earning well over what should be taxed, I haven't earnt over the taxable amount or something. They told me I've got a few grand to earn untaxable and then I'll get taxed so I'll get taxed soon and I won't get charged for being undertaxed apparently.