Am i supposed to be taxed?

Vinodpatel

I have got a young persons account with barclays and the only income i get is from my EMA payments aslo i got a few hundred pounds from weekly allowances from London school of Economics (LSE) saturday school. I dont know if this counts as income and whether it should be taxed, but the gross interest earned quarterly has always been taxed. so my question is should i be taxed and if not what can i do about it.

Extant

If you earn less than a certain amount, then no, you should not be taxed - but you need to inform Barclays of that. You can do so by requesting an R85, which is a government form. Upon receipt, we'll stop with-holding tax and refund any paid this tax year. Past tax years need to be re-claimed through HMRC.

Vinodpatel

BarclaysManager wrote: »

If you earn less than a certain amount, then no, you should not be taxed - but you need to inform Barclays of that. You can do so by requesting an R85, which is a government form. Upon receipt, we'll stop with-holding tax and refund any paid this tax year. Past tax years need to be re-claimed through HMRC.

Well I don't work and so I don't get any income from that but since last year I have got about £1500 from Saturday schools, EMA, Diwali and for my birthday. So does this count as income and if so the personal tax allowance is £6475 and I have not received any where near that amount.

Thanks

Lokolo

Gifts don't count as taxable income, neither will EMA.

http://www.adviceguide.org.uk/index/life/tax/tax-exempt_and_taxable_income.htm

Any non taxable income can be ignored when it comes to working out if you pay tax or not...

Vinodpatel

So the EMA, Diwali and birthday money are tax-free but what about the LSE Saturday school payments.

The list says nothing about my Saturday school allowances as I was given £12 per Saturday (to persuade students to attend) and £7 for travel costs which they reimburse. The travel costs could come under fares to school but what about the allowances as i was given a check BY LSE which I deposited into my account.

Lokolo

I have no idea. But that won't take you over your personal allowance anyway. So you can get tax free interest from savings etc.

Go into branch with an R85 form. Just don't forget to inform them when you do start earning more than personal allowance.

Vinodpatel

By the way I was talking about a young persons account (I get 0.1% interest which then gets taxed) and not a savings account if it makes any difference.

Lokolo

Doesn't make a different, but to be honest, neither will filling in the form. You will get an extra penny at the most, probably cheaper not to send the form off as it will be more expensive to print it out than the extra money you will get.

How old are you? (i.e. how long are you going to be a non tax payer for? So you in upper or lower sixth? planning on going to uni?)

Vinodpatel

I am in upper sixth form and am planning to take a gap year and will most probably get a job and so i see your point and probably won't send the form.

Lokolo

Ok well if you are going to start getting a job you will become a taxpayer once earning more than £540 a month (or £125.52 a week), which I assume you will in your gap year.

You might want to start thinking about savings accounts if you are going to be earning that, and presumbly parents won't make you pay rent or anything.

Just something to think about instead of preparing for exams

margaretclare

It used to be the case that students did not pay any tax at all.

Forget about your birthday and Christmas presents - no one pays tax on such presents! If we did the taxman would be running round in circles and unable to keep up with all the presents people give to each other.