Minimum wage, help please?

Witter

amersall wrote: »

hi, this is why you are not paying tax as you have not worked enough in that that tax year to pay any tax, this is what happened to me. so could that be why? not because you came off benefits that you dont pay tax (think this is right?)

Hiya i dont have a clue as ive never questioned it at the jobcentre but thats the reason stated on my estimated income which jobcentre did to show me how better off i would be working. But i wil be going to find out why it is next week as i'm worried now after the comments that have been posted saying i should be paying tax

Sucker_for_sweeties

Callico1 wrote: »

Forgot to say, have two children and am coming off income support to start back at work 16 hrs a week but will be on minimum wage so am worried that if i'm not earning enough to pay tax how can i claim working tax credits? thx for your replies. x

Hi OP
If you are a single parent then yes you will be able to claim WTC and CTC, including help with childcare costs. If you are part of a couple, you need to be working 30 hours between you.

Witter wrote: »

Hiya i worked just over 40 weeks as i said i started back at work around 9 month ago after having a year not working

I'm assuming that would be 8months of the previous tax year, and April of this tax year. So if you worked 40hrs pw for 8months of last tax year you still did not earn the minimum wage. (where's shruggy shoulders - coz I'm confused?)

amersall wrote: »

hi, this is why you are not paying tax as you have not woked enough in that that tax year to pay any tax, this is what happened to me. so it is not because you came off benefits that you dont pay tax (think this is right?)

If Witter's P60 income was £7427, then unless their tax code was over 647L, the 'standard' code they should have paid a 'small' amount of tax last year.

As a pay period for this tax year has now passed I would expect them to have paid tax on any earnings over around £540 this month. If your tax code is 647L.

amersall wrote: »

hi, this is why you are not paying tax as you have not woked enough in that that tax year to pay any tax, this is what happened to me. so it is not because you came off benefits that you dont pay tax (think this is right?)

Yes - if you earn below the tax code you have in a tax year then depending on the timing of starting and leaving work you will either not pay tax - or be entitled to a refund of any tax you have paid if your full years earnings (including benefits and pensions etc) is below your taxable free pay (£6475, for most peeps).

The only employee's I am aware of that don't pay tax are students who fullfill the criteria enabling them to sign a P38s. Happy to stand corrected though I know there are some real payroll experts out there.

Sucker_for_sweeties

Witter wrote: »

Hiya i dont have a clue as ive never questioned it at the jobcentre but thats the reason stated on my estimated income which jobcentre did to show me how better off i would be working. But i wil be going to find out why it is next week as i'm worried now after the comments that have been posted saying i should be paying tax

Witter, don't worry, just get a hold of your P60 (if you've got it yet) and your April payslip/s. Check the tax code on them, maybe it's higher than 647L?
Speak to your payroll person if it is 647L, and you earned more than £6475 but didn't pay any tax. Ditto if you earned more than £540 this month and your code is 647L, they will be able to explain it for you.

Few employers use 'manual' tax tables etc any more (TFFT:eek:). It's all done on payroll software or the HMRC's CD. If you supplied a P45, or signed a P46 if you didn't have a P45, when you started then it should all be fine. Look at your payslips though it should be easy to see.

GlasweJen

I've always paid tax and i'm disabled and was a student.

dmg24

Witter wrote: »

Hiya i dont have a clue as ive never questioned it at the jobcentre but thats the reason stated on my estimated income which jobcentre did to show me how better off i would be working. But i wil be going to find out why it is next week as i'm worried now after the comments that have been posted saying i should be paying tax

No one has said that you have to pay tax, but rather that there is not a general exemption for all as you described earlier.

Indie_Kid

amersall wrote: »

i would look into that if i were you, you shouldnt pay tax if you only work six hours

Amount of hours are irrelevant - it's the amount that someone earns that matters.

Witter

Have have spoke to the working tax credit office on08453667858 to renew and was told if i was due to be taxed then it would have been taken from my wage. I have worked since middle of july 09

dmg24

Witter wrote: »

Have have spoke to the working tax credit office on08453667858 to renew and was told if i was due to be taxed then it would have been taken from my wage. I have worked since middle of july 09

No one has disputed that!

Witter

dmg24 wrote: »

No one has disputed that!

Well from reading posts above it seemed to me that i was wrong not to be paying tax. So as i said i wanted to make sure the jobcentre was not wrong to have told me i wont have to pay tax and given me this estimated income