Explain My Payslip

whatatwit

Mudd14 wrote: »

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.

I always feel that the P38(s) can be very misleading.
A lot of people have the idea that this means that a student doesn't have to pay tax at all.
Unfortunately, even students are liable to tax & NIC with the same rates and allowances as the rest of us.

The P38 system worked well when a student was working during the holidays, with the grants system as it is now, a lot of students are working all the year round and earn over the personal allowance.

To make sure you are paying the correct amount of tax, fill in a P46.
If you are earning under the weekly/monthly tax free amount, then the unused allowances will roll over.
Make sure you keep all your payslips and at the end of the tax year, you can check if you have paid the correct amount of tax.