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Under 18 paying tax - help! P46

Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
Hey guys!
(Please note I'm 16, 17 next week)
So I've been told until I'm 18 or earning over £10,000 a year I won't be taxed.
I started my first job in October 2014 and since payday 1 I've been taxed - my employer told me to fill out a P46(in process).

Since February 2015 I've started working another job, and am getting taxed for that also. The employer from my first job told me I shouldn't be and I should fill out a P46 too.

Should I or should I not be paying tax? Any information appreciated - thanks!

Comments

  • Former MemberFormer Member Posts: 1,876,324 The Mix Honorary Guru
    Your age is irrelevant for income tax in the UK. It is based on how much you earn, not how old you are.

    The first £10,000 you earn in a tax year (which runs April to April) is not taxed (unless you earn over £100,000/year). This "personal allowance" is split over the whole year, so generally you'll only pay tax on anything over £833pcm/£192pw.

    Usually the "personal allowance" is included in your tax code for your main job.

    If you have a second job, you will usually be taxed at 20%, as the "personal allowance" is not included. But this is only if HMRC know about both jobs. If they don't, sometimes they apply the "personal allowance" twice, meaning that you are not paying enough tax.

    If both of your jobs pay roughly equal amounts you can ask HMRC to split your "personal allowance" across both jobs, but HMRC tend to be reluctant to do this. You'll need to speak to HMRC about it.

    If your first employer hasn't been given a tax code from HMRC you'll be taxed at 20% in that job. This is sometimes called "emergency tax".

    You need to make sure that HMRC know about both jobs. If you earn more than £10,000 a year you may be paying too little tax, and if you earn less than that you may be paying too much tax.

    You can apply for a rebate for any overpaid tax after April; you'll need to speak to HMRC to get the relevant forms.

    TaxAid have a good article about it: http://taxaid.org.uk/guides/information/issues-for-employees/employee/paye-with-two-jobspensions
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