students and tax

Katrina-trying_to_save!?!

do people at uni pay tax on their wages????

Stevenj214

Yeh, there's no special exemption from tax for students. So you would get taxed on anything above ~£80 a week same as everyone.

Katrina-trying_to_save!?!

my friend was tlkin to a fella who works in tesco and he said he didnt need to pay it. musta been a tax rebate or something.

thanks for the reply x.

Robert_Sterling

Stevenj214 wrote:

Yeh, there's no special exemption from tax for students. So you would get taxed on anything above ~£80 a week same as everyone.

I think the tax free part is nearer £100 per week than £80 per week.
Then the next £20 per week is at the rate of 10%

i.e. On the first £120 per week of income the tax is only £2 per week.

tenof26

i thought income tax was let off, but national insurance tax you still had to pay

so you still have to pay some tax, just not as much as everyone else


Although there is a wage limit, i think if you are earning over £1000 a month, then they are liable to tax you, but if you then earnt less than £1000 a month over the whole year, you can claim it back

or something stupid like that

(i may have got names and times wrong, but either way, its just as stupid)

HGLTsuperstar

Students have same personal allowance as everyone else, so if they earn above it, tax kicks in

malky39

This is a common misconception by students. The system by which income tax works in the Pay As You Earn (PAYE). Each person has a personal allowance indicated by your tax code. E.g. tax code 489L = £4890 of tax free earnings per year. So anyone who does not earn over this does not pay tax, this is where students get the myth 'students dont pay tax' as most students do not work enough to make them over the threshold. Should they do more work say over the holidays they will get taxed, but should it work out that they still do not work over the threshold thay will recieve a tax rebate for any over payments after the current tax year has ended. Should they work enough to earn ovr the threshold they will pay tax like any other worker at the rates of 10%,22% then 40%.
So overall yes students do pay tax, but only if they work enoguh to do so, which many do not.
Hope this had cleared some things up.

Katrina-trying_to_save!?!

thanks everyone for the replies...

Robert_Sterling

tenof26] wrote "i thought income tax was let off" It is not

"but national insurance tax you still had to pay" Not on the first £100 per week

"Although there is a wage limit, i think if you are earning over £1000 a month, then they are liable to tax you, but if you then earnt less than £1000 a month over the whole year, you can claim it back" This is not correct

malky39

"Although there is a wage limit, i think if you are earning over £1000 a month, then they are liable to tax you, but if you then earnt less than £1000 a month over the whole year, you can claim it back" This is not correct [/QUOTE]
Exactly if this was the case you would be able to earn 12000 a year without paying tax no way.

Only way of not paying tax or avoiding high tax is to move, either to a tax free country or state i.e. Dubai, Monaco (if you can afford it) andora or nevada all income tax free or if you wnat to stay in britain Isle of man highest tax band 20%

Savvy_Sue

IF you are only working during vacations, and IF you (and your employer) reasonably believe that your earnings will be less than your taxable allowance for the current tax year, THEN you can fill in a P38S for your employer and in those circumstances you don't have to pay tax. Note that that may not be the exact form because the tax allowance is wrong, it's over £5000 for the current tax year.