P50 - to claim or not to claim? Returning to study

benham3160

Hi everybody, I hope this is in the right section.

The background to my question - I am a 25 year old (very nearly) who has deceided to attend university this September. Using my last wageslip (to the end of August 2011) I had earnt £4667, and paid £310.20 and £198.94 Income tax and NIC's respectively.

I will earn around £500 (gross) in September, then I will finish work, which my my calculations leaves me under the threshold, and due a refund.

However, there is the potential I may return to work for a few weeks over Christmas and Easter, meaning I could fill out a P38 to make myself exempt, however I'm confused as this may tip me over the threshold and I could then be liable to pay back my refund, plus extra tax? Or does filling a P38 grant me a "clean slate" to earn money in my holidays?

I hope my question makes sense, I probably have explained it very poorly, and thank everybody for their (always good) advice in advance.

I'm hoping I can reclaim this tax, however I'm a realist!

Regards,
Andy

CLAPTON

a P38 can only be uised if you only work in holiday periods and is does NOT mean you won't to liable for tax if you earn more than 7475 pa

your tax will be calculated on your total yearly earnings

benham3160

CLAPTON wrote: »

a P38 can only be uised if you only work in holiday periods and is does NOT mean you won't to liable for tax if you earn more than 7475 pa

your tax will be calculated on your total yearly earnings

Many thanks for your reply Clapton

I'm still undecided what my actions should be, I may still work but still earn less than the threshold.

What would happen if I claimed a refund on my existing earnings, and at Christmas and bought my overall yearly income to say £8000?

Regards,
Andy

CLAPTON

benham3160 wrote: »

Many thanks for your reply Clapton

I'm still undecided what my actions should be, I may still work but still earn less than the threshold.

What would happen if I claimed a refund on my existing earnings, and at Christmas and bought my overall yearly income to say £8000?

Regards,
Andy

then you would be liable to pay tax.

CLAPTON

just to be very clear, you would not be eligible to fill in a P38 as you have already worked outside holiday periods

Savvy_Sue

If you're finishing your current job, you'll get a P45. If you're not finishing, just not working, you won't.

Either way, next time you work you'll either give in your P45, or you won't need to as you'll already be on the payroll. But the net effect will be the same: someone will look at your earnings to date, add on your earnings for that period, and work out whether your due to pay any tax, or indeed due a refund.

So, in my inexpert opinion, you might as well do nothing right now. As already said, the P38 ca't be used.

getmore4less

AIUI you get p45 send that off with the p50, HMRC send you refund and a new p45 for the next employment or JSA claim.

http://www.hmrc.gov.uk/pdfs/p50.pdf

jimmo

Savvy Sue's "inexpert" opinion really hits the nail on the head.
The key issue, for the time being, is will you get a P45 when you stop working in September?
If your employment formally ends in September and you get a P45 you will be able to consider claiming a repayment from HMRC and we can consider the finer points arising.
If your employment remains open and you don't get a P45 then any repayments should come to you by way of your employer's normal operation of PAYE.
A nephew of mine worked for a national retail company before going to university. He was effectively transferred from his home town branch to his university town branch for term time where he worked the weekends and transferred back to his home town branch for the vacations where he worked full time.
His tax situation was pretty straightforward, being in continuous employment but I hope it illustrates that we need to know your personal situation before we can come up with constructive advice.