School leaver first job and training allowance

joanne_d_3

Not sure whether to post this here or elsewhere but here goes...

My daughter , 17 next month , has just been accepted onto a training course , "training for success" .

For this course she will receive a weekly training allowance of £40 plus as far as i am aware she will also get £10 weekly travel expenses reimbursed.

Now , tomorrow she is starting her first ever job , not a lot of hours , just enough to top up her training allowance.

Her earnings for the year from her job i would expect to be somewhere around £4,200 (or less but certainly no more).

Her training allowance for the year will be £2,080 (without counting the reimbursement of the travel allowance)

Im wondering.......this would take her quite close to her personal allowance....what do we need to do ? I would be worried that she would go over the personal allowance and no-one be taxing her and she would get in bother with HMRC

Who would be responsible for working out if she needs to pay any tax ? Would we tell her new employer that she has the training allowance and let them deal with tax matters ?

Would we need to contact HMRC ourselves to sort it out ?

Confused......

Gertie_Walker

Only your daughter can contact HMRC to clarify this. She needs to ring the helpline, tell them the situation and they will take action. It could be that the training allowance is not taxable, but they will tell you this.

joanne_d_3

Jimmo.

Thanks ever so much for the link...sorry , for some reason i didnt see your post on my thread yesterday....

Ok....whilst the link was extremely helpful and informative , im still not 100% sure that it relates to my daughters circumstances ?

The link (i think) is steered more towards employers who have taken yound people on AS TRAINEES , hence that the employer will either be paying the employee (my daughter) her training allowance personally OR , the employer will only be responsible for "topping up" the training allowance...

My daughter is training on a training for success programme mon-fri for which she is receiving the training allowance . Then , at night and on the weekend she is working part time in BURGER KING .

Totally unrelated.....

Guess it means a call to HMRC for me lol

opinions4u

1. Find out if the 'Training For Success' grant is taxable. Get her to speak to whoever provides the grant and HMRC.

2. If in doubt, suggest that she saves £10 a week in to an account, just in case the taxman comes along and asks for money in the future (perhaps do this anyway - it's amazing how much youg kids waste when they start earning, so embedding the savings habit now makes a lot of sense - save before you spend, not the other way round).

Good luck, and if they provide free staff meals suggest she doesn't have too many!

joanne_d_3

Hi and thanks to you both for your responses .

Ok , training for success is a government run training programme for 16-20 year olds .

She will be training at NVQ level and will train for 2 years .

As to the form P46 i told her that at some point in time Burger King would ask her to sign one of these . However , she started Bk BEFORE her training course so by signing to declare that BK is her only income she actually completed the form (in my own opinion) correctly .

She started in BK last week and is not due to start her training course until tomorrow.

I really think i need to telephone HMRC lol.

What has not become apparent is that she will not be earning over her personal allowance . Counting her training allowance , travelling expenses and earnings from her job , i calculate that her total yearly earning will be in the region of £5900.

Think it's best if i leave this one to HMRC .

Just incase you care to take a look , type training for success into google . It's a NI based training programme.

dave2

Quick bit of Googling and Training for Success money is Education Maintenance Allowance.

99% sure it's tax free, does not affect any other household benefits, and the student's job isn't going to affect eligibility either. In any case even if it was taxable her total income is below personal allowance... No problems here

edit: joanne d updated while I was on the google

joanne_d_3

Incase it helps anyone to offer advice on my post , im going to copy and paste a bit of info found on the training for success website . Please read the post below.

joanne_d_3

Training for Success is all about giving you the tools and the confidence to find work. It focuses on the extra learning you may need. Once you gain recognised basic skills and qualifications, you are ready to move into the next level of training perhaps into an Apprenticeship / Programme-Led Apprenticeship.
Training for Success is delivered across three components

• Skills for your Life - Addressing personal and development needs
• Skills for Work - Helping you gain skills and a vocationally related qualification at Level 1 to be able to gain employment to progress to Pre-Apprenticeship or Apprenticeship provision or to further education.
• Pre-Apprenticeship - Please note that this is suspended with effect from 23 June 2009 until further notice and has been replaced with the Programme-Led Apprenticeship.
  • More information on the Programme-Led Apprenticeship

Ensuring that those of you who have been assessed as being capable of achieving a Vocationally Related Qualification at Level 2, but who have not yet secured employment are prepared for future progression to employment as an Apprentice.
Some examples of the varied range of training:

• enabling you to identify opportunities for training and employment
• building confidence and understanding through a range of cultural, recreational, individual and team activities
• helping with interview skills and the completion of job applications
• achieving a relevant qualification
• basic First Aid, ICT, Health & Safety
• job specific training

Job experience and job sampling based on your needs gives you the chance to experience different workplaces and decide what sort of work suits you best.

From September 2008 if you go into training through one of the components of Training for Success you will automatically qualify for a non means tested Education Maintenance Allowance (EMA) of £40 per week. If your parent(s) / guardian(s) receive Income Support, means tested Job Seeker's Allowance or Housing Benefit, that benefit will not be affected by the EMA. If you are entitled to one of these benefits in your own right, then that benefit will not be affected either. Your parent(s) / guardian(s) will also be entitled to receive Child Benefit & Child Tax Credit provided all other conditions for receipt of the benefits are met.
Travel, lodging and childcare allowances may be paid depending on individual circumstances.

• Pre-Apprenticeship Frameworks

Training for Success - Specialist Support

Specialist Support Providers (SSPs) can supply additional support for individuals who require it, for example people with disabilities, so that they can benefit fully from training.

• More information on Specialist Support

joanne_d_3

dave2 wrote: »

Quick bit of Googling and Training for Success money is Education Maintenance Allowance.

99% sure it's tax free, does not affect any other household benefits, and the student's job isn't going to affect eligibility either. In any case even if it was taxable her total income is below personal allowance... No problems here

edit: joanne d updated while I was on the google

Hi Dave .

Thanks for the response.

I have just been reading further on the "training for success" website and i noticed that bit about the payments being EMA as well . I copied and pasted a lot of info above and i highlighted the bit about EMA as i was hadnt notice the mention of payments being EMA before.

I agree that EMA is NOT taxable .

Im not usually this "last minute" with things but my Daughter was actually due to start a DIFFERENT course and i had everything sorted out ......then she decided that she wanted to do this course instead so everything kind of last min lol

joanne_d_3

So guys...if the money she receives is EMA which would not be affected by her part time earnings , do i still tell HMRC ? Do i tell Burgerking ? Do i tell the training course provider ?

Sorry for all the ?'s

Thanks