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Tax Tax Horrible Tax

#1
Original posted this in the TA section but im guessing there's more of my beans eating, countdown watching comrades here.

I am being hit with ridiculos income tax which im pretty sure i shouldn't be paying. Does anyone know the rules for tax on the TA for students. My unit aren't much help.

Cheers in advance.
 
#2
If its your only income you need to sign a P38 form(get from your payclerk),that allows you to not be taxed on earning up to about £4600 per year. Once you go over this they will more then likely stick you on base rate tax which is a bitch, i was on it for a while and they take something like 26% of your wages, if this is the case get a pay form at represents your life style (ie single man, married couple etc
 
#3
The rules of tax are that unless you have a summer job you must pay tax all year and then reclaim it at the end of said financial year.

£4grand rule still applies.
 
#4
Unless the rule have changed it depends on how much total earned income you have. If it falls below the annual personal allowance (approx £5,000 but don't quote me) you should be exempt for income tax (but not, I believe NI).

There is a form available from the Inland Revenue which allows you to state:

1. This is you only or your main job;
2. Your income only reaches a certain amount and;
3. you are a student.

Fill that puppy in, give it to your RAO and hey presto the tax will no longer be deducted. You should also be able to claim a rebate for any prior over payments.
 
#5
antphilip said:
The rules of tax are that unless you have a summer job you must pay tax all year and then reclaim it at the end of said financial year.

£4grand rule still applies.
bollocks
P38 is all you need, and a p60 for any back taxes from last tax year.
 
#7
Personally I didnt fill in any forms, just rang local tax office and abused them for nicking my cash. They told me to send my p60 and a letter to the main tax place at Cardiff (que ridiculous Welsh spellings over phone), received my new code last month..havent yet had my £600 back though :x
 
#9
Hmm chap from the tax office said that you could only not be taxed on earnings if it's a summer job. I believe theres info on the inland revenue site proving this...
 
#11
The form you need is a P38(S) if the following applies to you:

http://www.inlandrevenue.gov.uk/faqs/general.htm

I'm a full time student, why am I paying tax?

All individuals regardless of their age are liable to pay Income Tax if their income exceeds their personal allowance

If you only work during the three holiday periods (Christmas, Easter and Summer) and you estimate that your total income for the tax year will be less than the personal allowance, ask your employer for a form P38(S). Return the completed form to your employer to enable your wages to be paid without deduction of Income Tax.

Completion of this form is not applicable if you are working during term time (e.g. evenings or weekends).
TA pay is taxed as a second income, unless you tell them otherwise!

If the above does not apply to you, then you can cleam your tax back by producing a P60 at the years end. (If you work part time elsewhere you need to produce all your P60's by the way)

Personal allowances for 2004/2005 is £4,745 by the way...
 

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