I’m in the middle of my degree and worked over the summer. Should I have paid tax?

Former_MSE_Wendy

Q. I’m in the middle of my degree and worked over the summer. Should I have paid tax?

A. It’s extremely rare for anyone to pay tax if they earn less than £6,475 a year. Students just working over the summer (and returning to uni in Sept) should have filled out a P38(S) form with their employer to declare themselves a student. If you didn’t, it’s likely you paid ‘emergency tax’, which you should be able to claim back.

To check if you’re due a rebate call your local tax office (find it) or complete form P50. If you’re due a refund it’ll be sent back to you by cheque.

If you earned over £6,475, use the Income Tax Checker to get a guide to the tax you should’ve paid. If in any doubt speak to the tax office.

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suzyQ_2

I'm in the same boat. Although I completed a P38S, I still got tax and NI deducted (
Can I claim back the NI as well as the tax?

Lokolo

suzyQ wrote: »

I'm in the same boat. Although I completed a P38S, I still got tax and NI deducted (
Can I claim back the NI as well as the tax?

NI is only reclaimable if you paid higher rate instead of normal rate. You cannot get refunds otherwise. In your case, its likely to be the latter.

jennifer32

I have recently graduated and began work as a supply teacher, i am working for 6 different agencies and get paid each month by all 6.
I get taxed on average by 2 agencies but not the other 4 shouldnt i be taxed by all 6 or none? so far i have not earned over the limit so shudnt be taxed.

am i entitled to claim back what i have taxed or should i be taxed more?
am i registered as self employed? as im working for myself through an agency?
i am very confused.

DrScotsman

Okay, will someone please explain the P38(S) to me?

If you are a student working only in the holidays, and won't earn over £6475 that tax year, you fill in a P38(S) and don't pay tax. This I understand. However supposedly if you didn't use a P38(S), then:

If you didn’t, it’s likely you paid ‘emergency tax’, which you should be able to claim back.

When I started a job using a P46 (first job, not holidays only) they put me on the BR tax code for one payroll month, but the next month they changed it and refunded me the tax I'd paid. If I hadn't started just one week before first payroll, they might have put me on the correct tax code instantly. If I had only worked during the holiday a similar turn of events would have happened. So what's the point of this P38(S) again?

MrsManda

DrScotsman wrote: »

Okay, will someone please explain the P38(S) to me?
If you are a student working only in the holidays, and won't earn over £6475 that tax year, you fill in a P38(S) and don't pay tax. This I understand. However supposedly if you didn't use a P38(S), then:
When I started a job using a P46 (first job, not holidays only) they put me on the BR tax code for one payroll month, but the next month they changed it and refunded me the tax I'd paid. If I hadn't started just one week before first payroll, they might have put me on the correct tax code instantly. If I had only worked during the holiday a similar turn of events would have happened. So what's the point of this P38(S) again?

The P38 allows you to use all of your tax free allowance over your summer holiday. Normally if you earn over £540 a month or £124 a week (6475/12 or 52) you will be taxed. Filling in a P38 means that this doesn't happen as it presumes you're only working over the summer.
You obviously worked for a very organised workplace. Most places, especially those who've only employed summer workers do not refund overpaid tax so quickly therefore students could end up paying vast amounts of tax on their earnings and not getting it back for quite some time. Filling in a P38 stops this happening allowing you to get the full benefit of the money you've earned. Plus it means you don't pay N.I. which you can not get refunded (except in special circumstances)

glider3560

MrsManda wrote: »

Plus it means you don't pay N.I. which you can not get refunded (except in special circumstances)

That is incorrect. Even if you use a P38(S), you are still liable to pay NI in the same way as any other worker.

DrScotsman

Thanks MrsManda, that explains it all. It was a part time job so my annual salary would have been well under £6475, so being taxed month-by-month based on my yearly salary as you described would yield £0/month.

granny-mo

Could anyone explain what / if there's anything I can do now about my situation?

I was working full-time until starting my degree in September. I have always paid tax and still do now in my part-time role (I work when required for an agency - maybe 6 hours a week). I have been told I can see about claiming any tax back in April, but my question is - is there any chance I can claim any tax back now?

Thanks in advance

Lokolo

granny-mo wrote: »

Could anyone explain what / if there's anything I can do now about my situation?

I was working full-time until starting my degree in September. I have always paid tax and still do now in my part-time role (I work when required for an agency - maybe 6 hours a week). I have been told I can see about claiming any tax back in April, but my question is - is there any chance I can claim any tax back now?

Thanks in advance

No as there is no way you can determine how much you will be earning from now until April 5th.

archersluck

I'm on placement for a year, obviously have to pay tax for this year, but after April 2010 I’ll only be there for 2 months. I won’t earn for the rest of the year and will be under the threshold. Is there any way to not pay the tax upfront? I don’t want to wait until April 2011 to claim it back!