Tax help

TheEffect

I'm so confused and know nothing about tax, so some advice would be very much appreciated.

I am 18, just finished college (in june), but started my first ever job in March. When I applied for the job, I was a student and hadn't had a job before and therefore I've never been taxed (it's a part time job, but have been doing quite a few hours recently). I'm leaving this job in 4 weeks time and would have earned around £2000 since starting in March. No NI or TAX has been taken from my wages.

In June, I started a second full time job as soon as I left college as a teaching assistant. I told them I had no P45 from my last job as I'm still at this job. When the TA job has paid me, they have taken tax (think it's 22%) and NI from the beginning.

I was told that you can earn around £6000 a year tax free. Is this correct? Is it correct that the TA job are taxing me straight away and that the part time job have never taxed me? Do I give the P45 that I'm getting from the part-time job when I leave to my current employer or do I keep it and give it to my next employer?

Would I be able to claim any tax back in April, or is the tax I'm paying now correct? Does everyone claim back some tax in April or is it only if you've overpaid tax?

As you can tell, my knowledge of tax isn't great, and the HMRC website confuses me. I need someone to explain this to me. Any responses are appreciated!

coffee_prince

Hi, I'm not an expert either but you said any replies...

Yes at the end of the financial year if your earnings are below £6475 then you can claim back the tax you have paid. You should ring them up and it gets done, though very slowly

TheEffect

coffee_prince wrote: »

Hi, I'm not an expert either but you said any replies...

Yes at the end of the financial year if your earnings are below £6475 then you can claim back the tax you have paid. You should ring them up and it gets done, though very slowly

Thanks! I would have earned more then that by April. I earned £2000 since March at the part-time job (I've been doing full time over the summer holidays) which hasn't been taxed, and I would have earned around £9000 at the TA job before tax.

coffee_prince

how was your first job paid, was it cash or do you have a wage slip?

TheEffect

coffee_prince wrote: »

how was your first job paid, was it cash or do you have a wage slip?

Paid straight into my bank account. Each month I get a pay slip with what I've earned, tax deduction (£0), national insurance (£0) and what I've earned since working at the company.

coffee_prince

Is there not a tax code on that slip? I dont understand how you can work at two places and recieve two wage slips and have two diifferent tax codes

TheEffect

coffee_prince wrote: »

Is there not a tax code on that slip? I dont understand how you can work at two places and recieve two wage slips and have two diifferent tax codes

When I started the part-time job, I was in education and had no other job. I've mentioned to the managers that I've got another job, so not sure if they needed to change my tax.

The tax code on my pay slip for the part-time job is 647L. I'll have to find the full-time job payslip tomorrow.

fengirl_2

OK, you are in a bit of a muddle, not helped by people not really giving you correct replies.
Can you pelase clarify - are you still in your TA job? Or have you left. And are you still in the first job?

TheEffect

fengirl wrote: »

OK, you are in a bit of a muddle, not helped by people not really giving you correct replies.
Can you pelase clarify - are you still in your TA job? Or have you left. And are you still in the first job?

I am still in the TA job. I started the TA job in June and will work there until July 2010. I am still in the first job, working my notice of 4 weeks there. I have 3 weeks left.

fengirl_2

OK.
The TA job is taxing you at basic rate as you have not given them a P45. You are not paying tax on your first job because it is below the taxable limit. I think that when you leave job 1, you wont get a P45 because you have not paid tax. If however you do receive one, things will be easy - you just hand it in to your TA job and your tax will sort itself out.
If you dont get a P45 from job 1, then you need to ask the payroll dept at the TA job for a form P46 which you sign to say this is your only job. You will then be put on E code which is better than basic rate.
Then you need to contact the tax office dealing with your TA job and tell them about the 1st job, how muc you earned there this year. They will then be able to issue a proper code number to the TA job, taking into account the earnings from the first job and any refund will come through your pay.

Mudd14

So your part time job is where you are on a 647L tax code and getting your free allowance and the TA job you are on a BR.

When you leave your part time job you will get a P45 which should be given to your TA job, they will then be able to change your tax code from a BR to 647L and a tax refund will be due through your TA job payslip, normally shown as a negative PAYE amount.

Until you leave your part time job it will continue like this unless you ask your part time job to put you on a BR code and your full time TA jon to use a 647L, ie reverse the codes for each job.