Student with 2 part time jobs

butterfly_girl_3

hey, im currently in full time education in university and i have 2 part time jobs. one is 4 hours and the other is 14 and they're both paid at £5.73. the 14 hrs job i recently started and i got taxed around £125 off approx £500. i read on the hm revenue site that for a student you can have up to £105 or so tax free a week, well i earn £103.14 a week and thats still under the threshhold for the year which i belive is £5225 a year. does it matter how many jobs i have or is it the total annual income from wherever that has to be 5225??
and can i reclaim the 125 which they took from this months pay.
thanks in advance
x

Debt_Robot

I had this problem too this year when I had too part-time jobs.

The £125 that they took, was it for NI or PAYE?

From what I have been told, did you start the 4hr job outside termtime? If so, this could be why HM are getting excited. The £105 rule only applies during term time.

butterfly_girl_3

no no the 4 hr job i've had for over a year and i'll check where the money was deducted and past back in few mins x

Debt_Robot

Okay, I think that you need to call HM Revenue asap. I am not sure if they work today but try calling them because this sounds like you may need to discuss it with them.

Having said that, have you had the 4hr job during holiday hours or only in term time?

butterfly_girl_3

ok the total pay which i had was 550.08 and from that they took 110 PAYE tx and 14.42 NI EES deduction. im on tax code BR for some reason x

Debt_Robot

I found the following below which may explain why you are being taxed:

Other special tax codes

BR
This code is an abbreviation of "Basic Rate". It is applied by HMRC to employees who are liable to pay income tax at the basic rate, i.e. 20%. You may be given this tax code if you have two jobs - in one of the jobs you have a suffix code so that you receive your "tax-free pay"; in the other you must pay tax at 20% on all of the earnings. If you have two pensions, the state pension and an occupational pension, this code may be used to deduct tax from your occupational pension.

Your employer is also allowed to allocate this code for new employees in certain circumstances if HMRC has not yet provided an official tax code.

If you have this code, your employer is required to deduct tax at 20% from all of your earnings. You do not have any "tax-free pay".

Example: Your weekly earnings are £300. Your employer deducts £60 tax, i.e. 20% of £300.

It is from a webpage called Paypershop - put that in Google.

I think this makes sense now as to why you are being taxed.

butterfly_girl_3

hmm but it also says that everyone is entitled to something like 6000 tax free for the year 08/09 and im earning less than that, i dunno maybe i should just call them and see x

CLAPTON

Students aren't treated any differently from real people as far as tax and NI is concerned.
Real people and students are entitled to earn 6035 this tax year before tax is due.
However, what your employer actually deducts depends upon partly on what you have told him when you joined and partly on the HMRC rules.

The 6035 tax free allowance is usually allocated against your first job... what is you tax code for your first job?
If you have a second job you usually get a BR tax code i.e. everything at 20%.
If your first job is the higher earner of the two then this works out OK for most people. (i.e. if the main job brings in 6035 over the year then the second job should be BR) and the tax will be correct.

However in your case it means you are being over taxed.

You have several options

a. you can wait until the end of the tax year and reclaim your tax. (not a great option.

b. you can contact tthe HMRC and ask for your tax free allowance to be allocated to your higher income job... this will improve things but you will still be a bit overtaxed and will need to claim at year end.

c. you can ask them to divide your tax free allowance between the two jobs... a bit more complicated but then you should pay no tax if they get it right.

Ni is different ... you get charged at 11% on everything over 105 per week on each job separately.

Mi_bargains

Call your tax office, telephone number should be on your payslips, they should be open on Saturday until either 2pm or 4pm.

Tell them you have 2 jobs and you want to split your personal allowance, they will ask you for the split (how much allowances you want on each job). Once this has all been setup and the new codes issued, you will get the refunded tax and NI, straight into your pay. (Chances are that one of your jobs will not show up on your records and HMRC will ask you to call them back with your employers PAYE reference number, your payroll number and your estimated income in this job)

It may take a 3/4 weeks to set this up (and a few telephone calls), but once it is setup you will not have to pay any tax or NI.

CLAPTON

Mi_bargains wrote: »

Call your tax office, telephone number should be on your payslips, they should be open on Saturday until either 2pm or 4pm.

Tell them you have 2 jobs and you want to split your personal allowance, they will ask you for the split (how much allowances you want on each job). Once this has all been setup and the new codes issued, you will get the refunded tax and NI, straight into your pay. (Chances are that one of your jobs will not show up on your records and HMRC will ask you to call them back with your employers PAYE reference number, your payroll number and your estimated income in this job)

It may take a 3/4 weeks to set this up (and a few telephone calls), but once it is setup you will not have to pay any tax or NI.

in general NI is not refundable.

jennifernil

You only pay NI once your pay gets over a certain amount in any week or month, depending on how you are paid. So if you had NI deducted then it was because you were over that amount in that pay period.
You cannot really avoid this, and you will not get it back. Same happens to my student daughter.