Temporary/Seasonal Work - Tax?

x-Princess-Vikki-x

Hi,

Do you have to pay tax/NI if your only work over a year will be seasonal?? E.g. from June - October.

Over the period I would earn around £3500 untaxed.

So in the whole year that would be all I earn.

Because this is less than the Personal Allowance (£6,475) would I still have to pay tax & NI?

Thanks

Kate78

Ok, I've split this into two:

Firstly National Insurance is worked out on a weekly basis. If you earn more than £110 in any given week, you will be liable for 110% of that amount for NI. Earn less than £110 and you won't have to pay anything.

Now for the tax bit. Are you a student? Some employers will offer you the chance to fill in form P38(s) so that you don't pay tax at source as you do not expect to go over the tax payment limit before the start of the next tax year (6th April 2011). However employers do not HAVE to let you do this as it is a voluntary arrangement for them.

If you are not able to do the P38(s) route, you may have tax deducted from your wages that you will be able to claim back from HMRC once your employment has ended.

More information HERE.

Proc

Is it cash in hand or "through the books"?

If it's done properly, I'd imagine that your employer will pay the tax (calculated pro rata) so earning £3,500 over a period of 4 months would be the equivilant of earning about £10,000 a year. You would therefore pay tax on the assumption that this is your salary. Then at the end if the financial year you would be entitled to a tax rebate providing that you stay below the £6,500 (can't remember precise amount) threshold.

That's my understanding and I'm sure someone will correct me.

x-Princess-Vikki-x

Thanks very much to you both,

Serenity

If you are a student etc and won't be working the rest of the financial year there is (or at least used to be) an exemption form that your employer should be able to give you.
Otherwise as has been said you can claim it back at the end of the tax year.
NI is based on weekly payments, as also said above

Cpu2007

That is very interesting,
I am a full time student,I have worked for some months last year and also this year, who do I have to contact to get my tax back as I have earned less then £1000 pound last year and also this year.

Thank you

Serenity

Cpu2007 wrote: »

That is very interesting,
I am a full time student,I have worked for some months last year and also this year, who do I have to contact to get my tax back as I have earned less then £1000 pound last year and also this year.

Thank you

http://www.hmrc.gov.uk/incometax/overpaid-thro-job.htm