1st Job - Tax etc.

skylight

DD has been offered a seasonal job at Asda (A lot of Asda threads about today!) She is 17 and still at college (so I get CB and CTC for her still). This is her first job, so she will not yet have an old P45 etc to hand in. She won't be doing enough hours (22 a week - 15 at college) to pay tax on etc, but she just needs to know what to expect with regards to this.

Will she be charged tax anyway and have to claim it back after April or another way round this with regards to a Tax Code. Does she need to call the tax office and ask for one? Or will Asda be "gents" and sort it out for her?

It's been sooooo long since my first job, I haven't a clue!

MrsManda

As she doesn't have a P45 she should be asked to fill out a P46 so that her employers can ensure she gets the right tax code. She may pay tax while it gets sorted out but she's likely to get any overpayment repaid in her next wage.
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10013512

Just to check but I presume she's working term time rather than in the summer holiday only?

skylight

Thats right - its a job just from next week through to Jan12 - unless they want to keep her on, but if they do she would still be under the tax threshold.

Will make sure she knows abot the P46. Thanks!

McKneff

Depending on her pay, she may be liable for NI payments, unfortuntely these are not reclaimable.

chrisbur

A P46 can be printed out from here
http://www.hmrc.gov.uk/forms/p46.pdf

Hopefully the new employer will offer one or ask for the details required for the online version. From what you have said your daughter should be able to select option A on the P46

"A – This is my first job since last 6 April and
I have not been receiving taxable Jobseeker's
Allowance, Employment and Support Allowance
or taxable Incapacity Benefit or a state or

occupational pension."
and the employer will then be able to use 747L on a cumulative basis, which will allmost certainly be the correct code and will avoid paying tax that later has to be reclaimed.

LittleVoice

McKneff wrote: »

Depending on her pay, she may be liable for NI payments, unfortuntely these are not reclaimable.

Another thread on Asda pay suggests that Asda pay at least the adult NMW even to their younger workers. So £6.08 x 22 hours would still be less than the primary NI threshold.