Tax Help

astheniaxgirl

Hiya, was just after a little bit of advice.

I'm currently working in a saturday job which gives me around the £2000 a year mark. Well I've just been offered a few nights working in a bar to get a little bit extra cash to put towards Uni next year, so I was just wondering if anyone knew how much you can earn before being taxed.

Thanks in advance :rolleyes:

Gem_

If pretty sure that you are not going to go over you £5,035 tax allowance then you can istruct your employer to use the same tax code as your current job - ie the one they use so as not to deduct any tax.

The inland revenue will send you a form when they spot this, or you could call them. I am afraid I have forgotten which of the many forms it is though! The form asks you to list all employment you have / will have in that financial year and to declare that you will not earn enough to go over the tax threashold. If you do it is not a big problem, you just have to let them know so they can adjust the coding.

This is not a good approach if you are going to go over £5,035 but if you are not then it saves all the hassle of waiting to get the money back later.

HTH

Gem

Savvy_Sue

Gem_ wrote:

If pretty sure that you are not going to go over you £5,035 tax allowance then you can istruct your employer to use the same tax code as your current job - ie the one they use so as not to deduct any tax.

I didn't think an employee could instruct an employer as to what tax code to use! :rotfl: In fact according to our payroll people, only HMRC can tell them what code to use, and it can't be changed (even if the wrong one was used by mistake) unless HMRC tell them to change it.

Gem_ wrote:

The inland revenue will send you a form when they spot this, or you could call them.

Calling them would be your best plan! It is sometimes possible not to pay tax on a second job, or to have at least some personal allowance if you're only a tiny bit over the £5035, but it's by no means automatic, and neither employer can just change your tax code because they have no knowledge of or control over what t'other fella is paying you.

rhig

As a student you can fill in a P38a to be exempt from aying tax during holidays as long as you have not met you tax free earnings limit.

http://www.hmrc.gov.uk/students/fagp38s.shtml