Does anyone know about tax and P/T work please?

michellen34

Hi I start my job on Monday working p/t 16 hours minimum wage earning £91.68 per week, I currently volunteer where i am going to work and my boss has rang the tax people to ask if i need a tax code(I'm the first person they have took on and he didn't know), they said i don't but talking to a friend (of a friend) tonight she said i won't need a tax code for this year but next i will , she mentioned two figures as a personal allowance £6420 and £4600, i am now totally confused, I was on income support and she said my stamp has been paid for the amount of time i've been a SAH parent on IS but it won't be paid now if i earn under the tax threshold then she said regarding the £4600 i would be a £100 over, does anyone know about tax and pensions please? I am totally lost??

michellen34

sorry should say SAHP stay at home parent

Savvy_Sue

Since you don't have a P45, your employer needs to give you a P46, which can be downloaded from the HMRC website. The answers you give on that enable your employer to work out what tax code to use, then it's sent off to HMRC and they may change it.

If this is the very first person to be employed on the payroll, then the employer needs to register as a new employer with HMRC. They are very helpful, and have a phone helpline. I'm not clear about whether the boss is a volunteer, or is self-employed, or what.

There are two bits of PAYE: one is income tax, and I think on those figures you wouldn't be earning enough to have to pay tax this year. The other bit is National Insurance. If you're under the threshhold for that as well, you will still get HRP (Home Responsibilities Protection) payments made as long as you are receiving Child Benefit in your own name. That's the only thing I can think of in relation to pensions.

michellen34

Thank you Savy_Sue I'll speak to my employer again today (he's a volunteer by the way aswell)

fengirl_2

As you are earning under the tax and NI limit, your employer does not need to register for PAYE and HMRC do not need to know about you.

michellen34

Hi Fengirl, what about the HRP as savy_sue mentioned, is that done automatically?
Thanks for that info

seven-day-weekend

As long as you are claiming Child Benefit in your own name and not earning enough to pay NI, Home Responsibilities Protection should be automatically applied.

michellen34

Great, Thank you seven-day-weekend