'Taxman to take almost half a new graduate’s starting salary'

Wiggynut

I've just read this on the Times website!
is this true??????
(ps, why do all articles written for students assume that you have parents etc to help you out.. what about people that don't have families - I'm sure there are 18 years old that don't - I know I didn't at that age!)
I'll be a mature student in Sept and this makes depressing reading... when will I be able to afford a decent (rented) flat.. no chance of buying .. and at this rate never! (I'm talking about after graduating!)

The report calculates that a new graduate on an average starting salary of £27,155 would be left with only £13,862.26 a year to spend after student loan repayments, direct and indirect taxation, national insurance, pension contributions and council tax.
http://www.timesonline.co.uk/tol/news/politics/article2767109.ece

:eek:

I just hope I'm reading this wrong?!?!?!??!?!

[Deleted User]

Welcome to the rest of your life. You'll be paying tax for a long time

tinkerbell84

So apart from student loan payments, they'll be paying the same bills as the rest of us?

Shocking :rolleyes:

Bigdaddy

It is true, and apparently the average student overpays tax , cause the rules are so complicated.

Wiggynut

I think you both missed my point...

if you get a wage of £27,155 you only take home £13,862!

I've never earned over £15,000 myself - I've also paid tax for 22 years... I'm not expecting anything free... but isn't the take home too low for such a wage as that?

Wiggynut

Bigdaddy wrote: »

It is true, and apparently the average student overpays tax , cause the rules are so complicated.

this is after graduating.. .ie paying normal tax (not working throughout the actual course)

Wiggynut

tinkerbell84 wrote: »

So apart from student loan payments, they'll be paying the same bills as the rest of us?

Shocking :rolleyes:

I've paid tax for 22 years!
I'm 36... paid for myself since 15 - no family (well, met one online recently!)

JimmyTheWig

Wiggynut wrote: »

I think you both missed my point...

if you get a wage of £27,155 you only take home £13,862!

I've never earned over £15,000 myself - I've also paid tax for 22 years... I'm not expecting anything free... but isn't the take home too low for such a wage as that?

That's not the take home pay. It's got all sorts taken off it, such as council tax and VAT.

[Deleted User]

So, tax...
National insurance
income tax
council tax
VAT
petrol
alcohol

I'm pretty sure everyone is paying at least 50% of their pay to the government some how.. graduates aren't special. I thought the 'average' salary of 27k was a big high though

Bigdaddy

Wiggynut wrote: »

this is after graduating.. .ie paying normal tax (not working throughout the actual course)

Actually, I am refrring to students who are studying and working part time, who ought not to tax because there earnings are under the tax allowance for the year. Quite often employers and HMRC will put them on the incorrect tax codes and hence they will overpay tax. If students have more than one part time job , then in most cases they will pay tax, only because their earnings are necssarily over the tax free amount , it is more due to the tax system not allowing employers to split the tax code between employers easily.

It is something to look out for that's all! Its hard enought as it is , and you certainly do not want to pay tax when it is not due.

Graduates, of course pay tax in the usual way, but again, beware as the allowances in the first year of employment after graduating may not be correct, there is a risk here and it is worth checking with your employer at the time.

tinkerbell84

Bigdaddy wrote: »

Actually, I am refrring to students who are studying and working part time, who ought not to tax because there earnings are under the tax allowance for the year. Quite often employers and HMRC will put them on the incorrect tax codes and hence they will overpay tax. If students have more than one part time job , then in most cases they will pay tax, only because their earnings are necssarily over the tax free amount , it is more due to the tax system not allowing employers to split the tax code between employers easily.

It is something to look out for that's all! Its hard enought as it is , and you certainly do not want to pay tax when it is not due.

Graduates, of course pay tax in the usual way, but again, beware as the allowances in the first year of employment after graduating may not be correct, there is a risk here and it is worth checking with your employer at the time.

Guess what. It's super easy to split your tax code if you need to. It's also easy to get HMRC to check whether you have paid too much or too little tax at the end of each tax year.



It's sensationalist journalism - they've included bills that don't come off your pay, and these are bills that everyone pays!