The tax fairy has been....

Discussion in 'Army Reserve' started by jason123, Oct 17, 2010.

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  1. Hello to all,

    My question to arrsers is this, I'm currently a full time student/bum/government leech and serving with a local unit. However I'm finding myself getting taxed quite alot, I know I'm not earning over the tax threshold to be paying PAYE tax so I am entitled to this back, however it seems that nobody at my unit is quite sure of how I should go about this, some have said it's to do with the military system and I should contact Cardiff, others say HM revenue.

    Anybody out there a student and claimed tax back and if so how?

    Cheers in advance.
     
  2. I used to just write to the taxman in April each year (same letter different date) and get a cheque back about 6 weeks later. It was just a brief statement explaining the situation and as your only source of income, I guess they check via your NI number and send a cheque when satisfied.

    There is a form that my company clerk always wanted me to fill out to stop paying it but I preferred to get the cheque then go on the smash.
     
  3. same sort of story gone full time student after 22 years pension doesn't go over threshold just rang the tax office and they were brilliant sorted in 5 mins and backdated to when i enrolled, result!
     
  4. Fill in a p38 form
     
  5. Thanks for the replies, much appreciated. Kom 42, my money will not be spent going on the smash, I'll spend it sensibly on things like cheap hookers and cocaine.

    Dragon, did you have to wait to April to get the money you were taxed back or did it come through with wages?
     
  6. msr

    msr LE

    I am sure JD150 will be along soon with the right answer ;)

    msr
     
  7. Follow this link to HMRC.

    HM Revenue & Customs: Students: Working in term time and the holidays

    Form P38 applies to Students during holidays, not when they're working during term time, which is how TA employment is classed. As kom42 suggests, write to the taxman at the end of the year, with a copy of your P60 requesting a refund. You might think it unlikely that you'll earn over £6,475 in the year, but TA pay, plus any other little schemes you may have going could eat up your allowances quicker than you'd think.
     
  8. There should be a form to complete at your Unit Admin Office that will stop/reduce tax deduction from your TA pay, though it could be a while before your tax coding is corrected. When it is corrected, the excess tax that you've paid will be refunded in your TA earnings.

    That's fine if you don't have any other employment but if you do, you'll have the same rigmarole at your other place of work. But you may find that you end up with a hefty bill at the end of the next tax year if you step over the threshold - as neither MoD nor your other employer will be aware of your total earnings.

    It could be safest to let your TA earnings be over-taxed and claim back the excess at the end of the tax year direct from HMRC. Less chance of a nasty surprise.
     
  9. Fill in the student's declaration section of a P38(S) form available from here: http://www.hmrc.gov.uk/forms/p38s.pdf

    In the employers section enter the following PAYE reference: 948/WZ82056. Leave the rest of the employers section blank.

    Post it to this address:

    Process Team
    MP 335
    APC
    Kentigern House
    65 Brown Street
    GLASGOW
    G2 8EX.

    APC will then amend your details and you should stop paying tax. Give a few weeks to see the effect. As for tax already paid speak to HMRC directly to claim it back (they will ask for the PAYE reference above) then proceed as per their advice.

    Note you must fill out a P38 every new tax year whilst you are still a student.
     
  10. For unit staff: Tax information should be processed as part of the enlistment process. See JPA BPG 'TAFMIS Record Creation and Activation of New Hire - TAFMIS Records on Recruitment' revision 4 para. 24-28 dated 25 Jun 10.
     
  11. Cheers JD150, perfect answer as my next question was how to I prevent further taxing.

    Thanks for all the replies!
     
  12. april it was sorted out between taxman and army pensions and put straight into bank, yee ha!