Student and paying tax?

emma_b_4

hi, im a student nurse and have recenlty done su=ome agency work. i didnt think id get taxed but i have been taxed, agency says i have to sort my own tax code out ..
i get bursary NHS of approx 5k a year, but i have fulltime student status for things like ctax. do i need to pay tax as normal?
if not, what do i need to do?
also, can i claim any of tax back from anything else?

thankyou for your help

crossleydd42

If you're doing work, you need to get a P45 from the Tax Office. This will give you your Personal Tax code. You then hand it to the agency and they will apply the tax code to your earnings, NIL band, then 10%, then 22%. without a P45, all earnings are taxed at 22%. A P45 will enable the agency to regularise any overpayment.

emma_b_4

can i rin g them for a p45?

isasmurf

The tax office doesn't issue P45s. You must be given one when you leave any job. If you have not worked before, or do not have a P45 you should ask your employer for a P46. Your employer will then send this to HMRC to obtain a tax code for you. It is their job to obtain a tax code from HMRC for you (but ultimately only you are responsible for checking you are on the correct tax code).

You may find HMRC's microsite for students helpful.

emma_b_4

yes i have worked beofre but was kept on as a relief worker at old job and cant remember if i got p45, although i was very busy at the time, i know where it will be if i got one so i will have a look, thanks,
if not, would it be the agency that gives me a p46? im finding them very unhelpful!

Bossyboots

Yes, the agency should give you the P46.

You can complete one of these even if you are still on the books of another company.

roger_c

Emma you can download and print off the P46 from the Revenue's website this is the link:

http://www.hmrc.gov.uk/forms/p46.pdf

Hope that helps, once you've filled in your bit, get your agency to fill in the next bit and then they have to post it to the Revenue.

Toastie_Footwarmer

Hello!

As far as I'm aware its an urban myth that student's don't pay tax. The only tax they are exempt from (in England at least) is Council Tax. For short answer see BOLD text at bottom of post!!

The (pseudo)science bit:
The Inland Revenue set a £figure each tax year that everyone, regardless of tax code, is allowed to earn up to without paying any tax. A "personal tax free allowance" type thing.

Again, regardless of tax code, anyone who has earned above this set "personal allowance" figure in a particular tax year, is eligible to pay tax for that year on the amt earned over the "pers. allowance" figure. Very roughly speaking, the amt of tax paid after this allowance is calculated on a sliding % scale (depending on how much £'s you have earned over the "Pers Allow.").

The amt allowed tax free per person per year is usually in the region of £4500.00 -£5000.00/tax annum. Also the amt allowed tax free changes with each new tax year.

The short answer is that if a student earns over the "personal allowance" figure in any tax year, they will have to pay tax.

Sorry about long windedness but am fed up of hearing student hating types whinging about how student's don't have to pay tax!!!!!!! :mad:

surfcat

..and following from that Toastie, any whinging taxpayers are welcome to take jobs earning less than 4500 (or therabaouts) per year, and thus avoid tax altogether.

Savvy_Sue

Toastie_Footwarmer wrote:

As far as I'm aware its an urban myth that student's don't pay tax. The only tax they are exempt from (in England at least) is Council Tax. For short answer see BOLD text at bottom of post!!

I suspect that some of the confusion arises from the fact that if they are only working during vacations, AND do not expect to earn more than the personal allowance, there is a form which can be completed to allow them to be paid gross of tax. However, more and more students these days work both in vacations and term times, which means the form is relevant to fewer and fewer people.

I don't know if HMRC worry too much if it is used by someone working both vacations and term-time, but the main proviso is that the student does not expect to earn more than their personal allowance.

Toastie_Footwarmer wrote:

The short answer is that if a student earns over the "personal allowance" figure in any tax year, they will have to pay tax.

Indeed. And if they have tax deducted and then find they haven't earned enough for that to be justified, they can reclaim it at the end of the tax year. The reverse of this is that if they find at the end of the tax year that they've been paid above the personal allowance without any tax having been deducted, they need to declare it to HMRC.

However, some employers are less than methodical in their method of working out which tax code to use - there was a separate post a while back where it seemed an employer was just putting people onto BR even when it seemed to those of us who'd run payroll that that wasn't appropriate. The OP may have fallen into such a hole. Which is where it helps if YOU know what your employer should be doing with a P45 or P46!

sarahlouise210

The NHS bursary for nurses is not subject to tax or national insurance - even when it is payable above the level of the Personal allowance. Any income you receive above this from another employer will be subject to tax. You would need to check if you could have your tax free allowance on top of the Bursary though as the main reason that the bursary is tax and NI free is because it is anticipated it is your only income. You may also have to notify your faculty Office and NHS students grant unit if your financial affairs have changed as this may affect the bursary you can receive. Do not use a P45 if you have left the employment before April 2005. At the end of the day all that is in question is how much tax you will pay on the second income - you are lucky that the bursary is tax free but because you have this status for the bursary does not mean you can receive income from other sources and expect it tax free. You need to contact your own tax office who will have knowledge of the NHS bursary procedures and will know how additional income should be taxed.