P46 Problem!

L.S

Im a full time student and have taken up part time employment with a local labratory. The owner has asked me to fill in a p46 form before i can recieve monthly pay however there isnt a section under 'your present circumstances' for 'in full time education' and it has come to my knowledge that as i am in full time education i wont be taxed on money earnt at my part time job? please can someone help me with what to do next?

chrisbur

L.S wrote: »

Im a full time student and have taken up part time employment with a local labratory. The owner has asked me to fill in a p46 form before i can recieve monthly pay however there isnt a section under 'your present circumstances' for 'in full time education' and it has come to my knowledge that as i am in full time education i wont be taxed on money earnt at my part time job? please can someone help me with what to do next?

There is no section on the P46 for this as it makes no differance. The idea that students do not pay tax on their earnings whatever the amount is a myth.
What may well happen is that you do not pay tax due to low earnings, cannot advise on that as you have not given any earnings details.

You should complete the P46 ticking whichever box applies to you, if you do not fill it in you will pay 20% tax on anything you earn untill the tax office issue a code for you to your employer.

L.S

Thanks for the advise chrisbur. I didnt think it was a good idea to talk about exact earnings over the internet so lets say its under 11 thousand a year i earn. The majority of this is through a University bursary. hope this infomation helps further.

timefortea

You may not have to pay tax on a bursary, though.

chrisbur

I would assume that the University would be able to advise about tax on the bursery, I have no knowledge about these so cannot help.

Failing that you could try the tax office.

Vicky496

Hi,

This tax year April 6th 2011- April 5th 2012 the personal allowance is £7,475 (it was 6475 last year).

That means that your first £7475 earned is not taxed. Any amount over this is at 20% (until the 40% level, which I doubt you'll reach if you're a student).

Your bursary is probably tax free - unless it's an unusual one, it won't count towards this £7475.

If in doubt, write to your tax office with a copy of your P60 at the end of the year saying you think you might possibly have paid too much tax and will they check (explain you're a student and list all the jobs you've had in the last tax year). Down side with doing that is you have to wait until after next April... upside is you get a nice lump sum at some point

When I was at Uni on a couple of occasions I had two part time jobs. Only one of these can be your 'main job' (you won't pay tax on it until you reach the personal allowance limit, so make sure it's the one you think you'll earn more with so you've got less tax to claim back at the end). The second one I ended up paying 20% tax. However, as I never went over the threshold (even when you added the two earnings together) I could write and claim back the tax paid from the second job at the end of the tax year.

I think I've got this all right... I'm sure someone will correct me if not!

Kate78

Students have the same tax free allowance as everyone else - for this tax year starting 6th April 2011 that is £7,475 as correctly stated by Vicky496.

If you work during the holidays only and you think that your income for the year will be less than the tax threshold, you may be able to complete a P38(s) form available from your employer. However, employers do not have to offer this and if this is the case you will have to pay the tax and claim it back at the end of the tax year.

I think that the P38(s) is where people get the "students don't pay tax" idea from