tax

Walkerie · 24 Oct 2006 at 22:17

how much can u earn before u get taxed at the age of 18 in full time education?

Raymond Lin · 24 Oct 2006 at 22:22

WalkeruK said:
how much can u earn before u get taxed at the age of 18 in full time education?

Being in education plays NO part of how much tax you pay. The ONLY variable is amount you earn.

Your tax code will give a hint, should be around £4500.

csmager · 24 Oct 2006 at 22:23

Raymond Lin said:
Being in education plays NO part of how much tax you pay. The ONLY variable is amount you earn.

Your tax code will give a hint, should be around £4500.

£5035 for 06/7. Still have to pay NIC if you earn over £97/week.

yermum · 24 Oct 2006 at 22:29

Ask your employer for a student tax form. This enables you to earn an amount of money before you pay any tax. Sorry that I can't be more specific but I can't remember the name of the form. You could also ring your local tax office for more specific advice.

csmager · 24 Oct 2006 at 22:33

yermum said:
Ask your employer for a student tax form. This enables you to earn an amount of money before you pay any tax. Sorry that I can't be more specific but I can't remember the name of the form. You could also ring your local tax office for more specific advice.

It's an R85, iirc. Not a particularly special form, the £5,035 personal allowance still applies.

EDIT: Sorry, P38. Only applies to holiday work. The R85 is a form to fill in to stop the banks deducting tax from your interest if you earn under your PA.

Vonhelmet · 24 Oct 2006 at 22:36

Was just learning on my tax course how even as a child you are liable to income tax... Most people think kids are exempt due to their age, but it's only because a paper round doesn't usually get you past the threshold!

Kol · 24 Oct 2006 at 23:50

csmager said:
It's an R85, iirc. Not a particularly special form, the £5,035 personal allowance still applies.

EDIT: Sorry, P38. Only applies to holiday work. The R85 is a form to fill in to stop the banks deducting tax from your interest if you earn under your PA.

P38(S) to be exact

yak.h'cir · 25 Oct 2006 at 01:46

I've been working in the country for only a few months this year and am due to go abroad again soon to work. For the few months I have worked here i've been taxed quite a lot, even though i've probably only earnt about £7000. Will I be able to claim some of the tax back now (as I understand it they should only be taxing me on ~£2000), or will I have to wait till April?

Raymond Lin · 25 Oct 2006 at 01:48

yak.h'cir said:
I've been working in the country for only a few months this year and am due to go abroad again soon to work. For the few months I have worked here i've been taxed quite a lot, even though i've probably only earnt about £7000. Will I be able to claim some of the tax back now (as I understand it they should only be taxing me on ~£2000), or will I have to wait till April?

you can claim now, but you'll have to sign a declaration that you will not work in this country until the start of the next tax year ( April 2007 ). They'll refund any tax they own you.

But since you earn £7000, which is over the threshold, you will get tax, just not as much as someone earned £40,000.

crashuk · 25 Oct 2006 at 01:52

yak.h'cir said:
I've been working in the country for only a few months this year and am due to go abroad again soon to work. For the few months I have worked here i've been taxed quite a lot, even though i've probably only earnt about £7000. Will I be able to claim some of the tax back now (as I understand it they should only be taxing me on ~£2000), or will I have to wait till April?

you have to wait till next year, £5,035 not taxed ,10% of 0 - £2,150, so you would only pay £200 pounds in tax , ni you dont get back.

yak.h'cir · 27 Oct 2006 at 09:11

Thank you!

I think i'll wait till the end of the tax year then, don't want to prohibit myself from working just incase something unexpected happens!

jezsoup · 27 Oct 2006 at 09:13

Sorry to hijack, but over the summer I earnt just under 5000, this is under the tax threshold, but I was taxed over 700 on my earnings. Do I need to get some forms to fill in to get this money back or is it done automatically at the end of the tax year?

yak.h'cir · 27 Oct 2006 at 09:58

Might be done automatically, it happened to me once many years ago. But I wouldn't count on it. I think the simplist way to do it is at the end of the tax year post off any p45s you've got for that year to the local tax office with a covering letter. Make sure you keep copies. Shouldn't take too long to sort out once April comes around.

According to Raymond if you are not going to work at all for the rest of the year you can claim now. But I wouldnt want to do that since its would be annoying if your plans changed and you needed to go back to work.