Questions about tax, NIC etc

dragonfly2008

Im not an expert btw . Few questions though. Persons A and B doing just over 3 weeks work, 5.95 per hour, 37.5 hours a week.

Person A, has worked the same hours and wage all year (as above). Hands the new employer his p45. How much tax etc will he pay on 3 weeks work ?


Person B doing the same hours etc, has earnt less than 5,435 with in the tax etc year (as far as inland revenue are concerned). Hasn’t given new employer p45.

Will person B pay tax etc on the 3 weeks earnings, how much if they do ?

Will person B be given an emergency tax code, and how much tax etc will they pay on 3 weeks work if they are ?

Would person B be able to claim tax back due to being given an emergency tax code (how, when, where)

Sharon87

Well person B would probably pay 20% of his earnings in tax. This happened to me at the temp agency. I paid over £100 in emergency tax, which I can claim back at the end of the tax year. I haven't even earned the 6k something which is tax free yet!

Person A would get his personal allowance split over 52 weeks, then once he has earned that (say it's £100/week for example), anything over £100 would be charged at 20%.

Sharon87

Here's my workings for Person A

223.13 - overall wage
104.52 - tax free portion

118.61 - taxed
94.88 - after tax

104.52 + 94.88 = 199.40

So Person A would get £199.40 - before NI has been taken off.

Person B - 223.13 - take 20% = £178.50 - before NI contributions

dragonfly2008

Sharon87 wrote: »

Here's my workings for Person A

223.13 - overall wage
104.52 - tax free portion

118.61 - taxed
94.88 - after tax

104.52 + 94.88 = 199.40

So Person A would get £199.40 - before NI has been taken off.

Person B - 223.13 - take 20% = £178.50 - before NI contributions

I feel sickened

How do they justify over £40 a week in tax alone on a job that pays barley above minimum wage. I cant help but think something must be wrong .

Ebany

Something is wrong, but its because person B hasn't handed in their P45 or completed a P46. Its not the company or the government doing anything wrong.

If they complete a P46 they will be treated the about the same as Person A, as the company won't know that they haven't earned much so far this year. They will get each weeks tax allowance and each week will be viewed individually until the tax office get back to the company and tell them the correct amounts to deduct. If they hand in their P45 they will pay no tax.

dragonfly2008

Ebany wrote: »

Something is wrong, but its because person B hasn't handed in their P45 or completed a P46. Its not the company or the government doing anything wrong.

If they complete a P46 they will be treated the about the same as Person A, as the company won't know that they haven't earned much so far this year. They will get each weeks tax allowance and each week will be viewed individually until the tax office get back to the company and tell them the correct amounts to deduct. If they hand in their P45 they will pay no tax.

oh ok, everything is a bit clearer now. The company said someone would get in touch about payroll, i assume thats when id either send them a p45 or fill in a p46. But its only 3 weeks work and ive still not heard anything.

I dont want to end up paying a ridiculous amount of tax for the earnings, simply because the company were too slow on the up keep do i.