tax

stuwilky

Trow wrote:

I always use a P38 the way it is mean't - I'm not sure what the Inland Revenue would do if they discovered you were using it for students through the year - very little I would think as long as the threashold isn't breached, but I would still rather use it the way it is mean't - and it looks like the OP's employer is as well.

Its an academic argument, and with the Inland Revenue it depends on who you speak to for what advice they give you.

Some advisors will tell you to complete a P38 even for a year round Saturday job, some will never advise you to complete it, even for a summer job.

As with any money saving the best thing to do is to avoid paying the tax in the first place, rather than let Mr Brown take it, keep an interest free loan for a few months, then give it you back when you realise what he is up to.

student100

Hi. I too have worked at Argos several times and had trouble with them charging me tax! What happens is they divide the personal allowance over 52 weeks - if you earn more in that week than your allowance for that week, they'll charge you tax. On average though over the year you may not need to pay tax if some weeks you earn less than the allowance.
You can get the tax back - Argos may credit it back to you at some point or else you can claim it back from the tax office at the end of the year (April). Ask your store manager what you should do - hopefully they are helpful. They will certainly be able to give you the phone number of the tax office you should contact.
A couple of times when I worked there during holidays in the past, I filled in the P38 form and still got charged tax. I was told helpfully "[Argos'] head office don't take any notice of P38 forms, they'll charge you tax anyway, you'll just have to claim it back". When I went back this Christmas they didn't tax me so I figured they must have improved a little bit over the last couple of years!



And AFAIK whoever said "EDIT - Unless you are over 65 - then you dont pay NI ;-)" above is wrong. You do have to pay NI in any week you earn more than the threshold for it and there's no way to claim it back

Clareo

I have always used the P38 incorrectly and all that happens is when you reach the £4745 they just start taxing you as they normally would! Obviously generally people wouldn't want to do this as if you have a job earning £10,000 although your payslips will look very healthy for the first few months they will look sick towards the end of the year.

At the end of the year, well in April you'll get a P46 which will tell you how much you've earned in the tax year. If it's less than £4745 then anything in the tax box you can claim back. The inland revenue hate giving tax rebates so keep on to them, even if it's just £2 as it's yours! If you owed them money they'd expect it much quicker than they'll give it to you!

stuwilky

student100 wrote:

And AFAIK whoever said "EDIT - Unless you are over 65 - then you dont pay NI ;-)" above is wrong. You do have to pay NI in any week you earn more than the threshold for it and there's no way to claim it back

Thats wrong.

My father in law is 67 and stills earns signifcantly more than the threshold - and pays no National Insurance - NI contributions basically tot up towards your state pension - as he is already claiming it, he cant build it up any further - therefore doesnt pay any. It was all done with quite a fanfare on his part, he is like me and hates giving the government more money than necessary.

crana999

Stu is right:

"


Employees aged 60/65


An employee who reaches 60(women) 65(men) does not have to pay contributions. S/he should automatically receive a certificate of age exception. This form must be given to the employer so that contributions are not paid. An employee who does not receive her/his certificate should contact her/his local benefits office."

from http://www.adviceguide.org.uk/index/life/benefits/national_insurance_contributions_and_contributory_benefits.htm#Employees_aged_6065

student100

Oooohhhhkaaay... I have just realised my mistake. It's a matter of punctuation!

You said "Unless you are over 65 - then you dont pay NI"

Which I interpreted as "Unless you are over 65, you don't pay NI" (wrong)

When in fact I think you meant "Unless you are over 65 - in which case you don't pay NI" (correct).

Sorry

Lychee

Last summer I did a full-time job that was only suppose to be for 3 months (holiday period) so I filled in a P38s form and did not get taxed. At the end of September, I was asked to stay on and work part-time for another 3 months (term time). I was paid less than £70 a week and did not get taxed - paid NI, though.

In total, I earned more than the £4,745 threshold. I'm not working now.

Any idea if I do owe money to the Inland Revenue?

thanks in advance

crana999

If you earned over the threshold in one tax year then yes I think you do owe them.

Lychee

Thanks crana999

I guess I will be hearing from the IR in April? How will I be expected to pay tax back, e.g. by cheque?

crana999

Um, sometimes they can amend your tax code so you pay more tax during the next tax year. I am no expert though. You can ring your local I.R. office and ask them perhaps?