How much will I get taxed?

support_bae

support_bae

support_bae

Gangster
Associate
Joined
10 Mar 2009
Posts
475
How much will I be taxed?
I usually work 16 hours a week but this week I will be doing 2 extra 4-hour shifts. I will be working a total of 24 hours this week.

My wages work out as the following:

8hrs x £10.28 (Sunday Pay)
16hrs x £6.85

Total this week: £191.84

On this page: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10010537

Under the 'If you're a student' section it says I don't pay tax if all the following apply:

  • you're a full time student in the UK, only working in the holidays
  • you're returning to full time education after the holiday
  • your total income for the year is below the Personal Allowance

I answer yes to all of the above...

If I don't get taxed, how much will I pay in national insurance?

Everyone gets a personal tax-free allowance (£6,475 in 2009-2010). You don't pay tax on anything you earn below this amount.
The National Insurance you pay also depends on your earnings. You don't pay any National Insurance if you earn less than £110 a week.
Click to expand...

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10010537

Thanks.
 
You don't pay any tax. You pay 11% of your earnings in NI contributions. Click the link on the page you linked, it explains it all.
 
mame said:
I thought the student tax-free thing was a myth?
Click to expand...

You can apply to not have tax withheld at source if you are in full time education and working during the holidays etc, as long as you don't go above the personal allowance. That's the only difference afaik, students earning over the PA get taxed like everyone else. (i think that's what it's upto now after april 6th)
 
mame said:
I thought the student tax-free thing was a myth?
Click to expand...

No it's not. But it's only really tax free because you won't normally earn over the personal allowance during the holiday.

If your a student and earn £200k in the holiday you can be sure they will tax you... (If only :()
 
Energize said:
It is, personal allowance is all that matters. Why on earth the government put 3 different bullet points when all they needed to mention was the personal allowance I don't know.
Click to expand...

Because in a situation that is quite peculier to students, it's mroe than possible to earn enough in a few weeks to put you above the weekly threshold for tax but earn less over a whole tax year to be above the PA and so students can apply to not have tax witheld at source if they aren't going to earn over the PA, saving them the cashflow issues of getting taxed and then waiting for a rebate
 
mame said:
I thought the student tax-free thing was a myth?
Click to expand...

You are correct.
There is no such thing as "You don't pay tax because you are a student".
This myth gets posted on these very forums often.
Most students don't pay tax because they don't earn over their personal allowance.
In effect "being a student" means they aren't paying tax - not because they are a student, rather, like everyone, they are allowed to earn a certain amount tax free.
 
stoofa said:
You are correct.
There is no such thing as "You don't pay tax because you are a student".
This myth gets posted on these very forums often.
Most students don't pay tax because they don't earn over their personal allowance.
In effect "being a student" means they aren't paying tax - not because they are a student, rather, like everyone, they are allowed to earn a certain amount tax free.
Click to expand...

However if you are a student and you work during the summer only then you are able to inform HMRC so that they don't tax you pro-rata.

For example, if you started a job on July 1st at £250/week you would normally be taxed an amount (about £15/week) based on HMRC's assumption that you will have earned £9750 by the end of the tax year. If you then quit the job in September you would have to wait until the end of the tax year to claim back the tax you've paid...

but as a student you can avoid paying that tax in the first place by telling HMRC when you will stop working (in advance) and that you won't be breaking the tax-free earning threshold.

I don't think there is a way to do this if you're not a student, even if you know your work is temporary. So being a student does have some advantages in tax affairs.
 
Last edited:
cactuscake said:
However if you are a student and you work during the summer only then you are able to inform HMRC so that they don't tax you pro-rata.

For example, if you started a job on July 1st at £250/week you would normally be taxed an amount (about £15/week) based on HMRC's assumption that you will have earned £9750 by the end of the tax year. If you then quit the job in September you would have to wait until the end of the tax year to claim back the tax you've paid...

but as a student you can avoid paying that tax in the first place by telling HMRC when you will stop working (in advance) and that you won't be breaking the tax-free earning threshold.

I don't think there is a way to do this if you're not a student, even if you know your work is temporary. So being a student does have some advantages in tax affairs.
Click to expand...

Yes - but once again it is because you are unlikely to hit the personal allowance.
Let's say you work in the Summer Holidays only.
As a student, are you going to find a job that pays you mor than £6400 over 8 weeks?
Highly unlikely.
So again the reason you're not paying tax is due to you being under the personal allowance - not for being a student.

I agree that a student only working summer holidays can return forms so they don't pay tax, rather than having to claim any tax back.
But again it isn't strictly because they are a student.
 
You must log in or register to reply here.
Back
Top Bottom