income tax

tinmachine

i am a student and earn about £70 per week and i have just got a letter from the tax office to say i owe them money which will leave me with no wages this week. They are also going to tax me about £4 each week on my wages of £70. I cannot understand how they have reached this decision as i was led to believe you are allowed to earn £6,475 per year before paying tax. I have no other source of income.
Is this correct they have replaced my tax code from 647L to 312L. Any advise will be appreciated.

CLAPTON

you need to find out why they have changed your tax code to 312L... do you have a notice of coding... if so what does it say

otherwise phone them up and ask why they have changed it.

TM1976

Difficult to say without knowing why they think you owe tax.

If you have underpaid tax in a previous year it's possible that they try to collect that through your tax code.

System

tinmachine wrote: »

i am a student and earn about £70 per week and i have just got a letter from the tax office to say i owe them money which will leave me with no wages this week. They are also going to tax me about £4 each week on my wages of £70. I cannot understand how they have reached this decision as i was led to believe you are allowed to earn £6,475 per year before paying tax. I have no other source of income.
Is this correct they have replaced my tax code from 647L to 312L. Any advise will be appreciated.

If they have reduced your code and it's due to you owing tax then it must be because you underpaid in a previous tax year. You need to contact them to find out in what year this underpayment arose.

dzug1

tinmachine wrote: »

I cannot understand how they have reached this decision as i was led to believe you are allowed to earn £6,475 per year before paying tax. .

Not quite - you don't earn £6475 and THEN pay tax. The allowance is spread pro rata over the year