Paying Tax on T.A pay for students

Discussion in 'Army Reserve' started by Maggs84, Dec 4, 2007.

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  1. Does anyone know if students have to pay tax on their T.A pay and if so what rate it is set at.

  2. Being a student doesn't mean you don't have to pay tax, although you are of course in different tax brackets since you're in full time education. Its the sam as everything though - when you earn more than a certain amount per year you start paying tax. Same as if you had a weekend job in a pub or something.
  3. You should be able to collect a tax reclaim form from your unit to fill in & return to the tax office which should get you a refund on the tax.
  4. the TA system is set up assuming that TA solideirs have a 'real job' which more than eats their tax allowance and therefore thedefault setting has always been to tax code 'BR' i.e. you are taxed at the basic rate with no tax allowance

    many students who earn don't earn enough taxable income to cover the basic tax allowance ( as student support from the govt and any support from parents etc which has already been taxed doesn't count...)

    P46s sticks in my head for some reason in relation to this
  5. As it should!

    A P46 should be completed by the taxpayer (student) to get a proper tax code for this income. Ask the clerk for a P46 and complete it as being your main or only income. Hand the completed form back to the clerk and eventually the Tax Office will respond. That way you should get a proper tax code and get your tax allowences.

    Failing that you will have to complete a proper tax return for each year to reclaim the tax taken, (no fun at all, get the P46 done soonest!).

    (edited to make slightly more sense after review)
  6. If they want to be difficult about it they can be - I had the pay clerk tell me that I couldn't sign one because I couldn't say that I would not work during the entire tax year and would not earn more than the basic rate.

    Generally, though, UOTC staff let you sign them as a matter of routine and gross pay from then on. The alternative is reclaiming it after April, which is a nuisance, and may cause them to send a review form to you every year for the rest of your life.
  7. P46 is what an employer fills in when they don't have a P45. It won't exempt you from tax. MoD automatically place all TA soldiers on BR (basic rate) so there's no requirement for a P46 submission.

    Inland Revenue allows students to declare that they won't earn above the Income Tax threshold during vacation time and be exempt from PAYE - a form P38(S), but you need to be careful, because if you add the TA pay to a holiday job of some sorts, you might go over the threshold.

    Also as the P38(S) is only to cover you during vacation time, not term time, you're technically running foul if you also attend TA training during term time.

    Otherwise, continue to have the Army deduct tax at source, and claim it all back after April. Think of it as a savings plan.
  8. mm im a student with a part time job earning no more that my tax free allowence, and ive got a br tax code for my ta pay
  9. To be blunt it is not the pay clerks place to tell you that; to make the correct declarations to HMRC is your responsibility not the pay clerks. A P46 declaration is the way to allocate your tax code and thereby receive your tax allowance. You are entitled to choose which income receives the allowances and which gets a "BR" code if you have multiple incomes.

    True - the taxpayer has an opportunity to declare the income as their main source of income and therefore should have the full tax code.

    Just because MOD puts every TA soldier on a BR code does not mean it has to stay that way. As a taxpayer you are entitled to have the correct tax deducted at source and minimise your personal admin.

    (payroll staff and disinterested HMRC civil servants are the bane of my life at the moment, I'm an accountant/IFA trying to close down the tax and pension accounts of too many clients before the end of their accounting years).
  10. msr

    msr LE


    Any chance of a wiki page about this?

  11. I have just done my first wiki entry. I hope it improves rather than detracts on those that edited before; "Taxation and the TA"
  12. msr

    msr LE

    Great. Here is the link: