Explain My Payslip

lolpaul

I'm a full time student and have recently started my first part time job.

On my first payslip it has the following:

NI Cat. - A
Tax Code - B

Can someone explain to me what tax code B is?

I'm earning under £110 a week.
This month's pay I've made around £330 but have been taxed £65.

Is this correct? I thought you don't get taxed if you earn under your free allowance...

Please help

brazilianwax

Do you mean tax code BR?

Did you complete a P46?

Money_Grabber13579

I assume it's what your employer is using for the tax code BR or Basic Rate, where all your income is taxed. That will probably be because either the revenue have instructed them to do so, or your employer doesn't know what tax code you should be on. If your have had no other income up until this point, then you should probable be on 647L. I think you need to fill in a P46 and give it to your employer.

lolpaul

brazilianwax wrote: »

Do you mean tax code BR?

Did you complete a P46?

This is my first job so I don't have a P45. My personnel manager said he will fill in a P46 for me.

Payslip says Tax Code B. Not BR. I'm having trouble finding information on tax code B.

brazilianwax

lolpaul wrote: »

This is my first job so I don't have a P45. My personnel manager said he will fill in a P46 for me.

Payslip says Tax Code B. Not BR. I'm having trouble finding information on tax code B.

There is no tax code B.

You have to complete the P46, not your manager. And until you do and it's applied you won't have a tax free allowance and will keep overpaying tax (which you'll then need to claim back).

You can download the P46 from the HMRC website.

Money_Grabber13579

It's only B because the system the employer is using has shortened it to that. If you research BR, you'll find the info you need.

lolpaul

Ok thanks. I'll pop into work tommorow and request a P46.

brazilianwax

lolpaul wrote: »

Ok thanks. I'll pop into work tommorow and request a P46.

Or just get one now and take it in with you!

http://search2.hmrc.gov.uk/kbroker/hmrc/forms/viewform.jsp?formId=760

lolpaul

Thats grand.

Mudd14

Also if your a student you can fill out P38(s) form and pay no tax, your code will be NT (no tax), providing you are working in holidays etc. Goggle P38(s) for more info.

Valli

and you will get a refund if you overpay your tax BTW

P38 only applies if the student is working solely during holidays...that would seem not to be the case here.

OP you should get a tax code of 647L (unless there are extra allowances or deductions)

This gives you an amount of £6475 you won't pay tax on during the financial year.

You divide that by 12 to get the monthly amount you won't pay tax on. Divide it by 52 to get the weekly amount. BY that calculation you can see that you shouldn't have paid any tax on your earnings this month.

If then you work for longer hours during the summer and earn more you might pay more tax or some tax that week/month BUT at the end of the tax year it will all be balanced out and you can then get a refund. This is because we pay tax to HMRC as Pay As You Earn (PAYE).

HTH