part time working

clogger

I have been in a part time job over one month I have no contract of employment I do not recieve any pay slips just a weekly cheque from my employer. he is a one man band and says he has not employed staff before, he did ask for my p45 when I started but I have no idea what he has done with it, its a good job i like doing and the boss has been good to me but am I being naive and am I being employed properly or taken advantage of?

LittleVoice

What is the amount of your weekly pay?

clogger

my weekly pay is £90.

LittleVoice

clogger wrote: »

my weekly pay is £90.

That means you are not earning enough to pay NI in that job and are also under the amount which would mean you were due to pay income tax. So paying you gross is would be OK.

I'm assuming there that your previous employment was at about the same level of pay.

If you are 21 or over, the national minimum wage for you would be £6.08. So if are and you work under 15 hours a week that too is OK.

What is not OK is for you not to have payslips - and soon you would be entitled to receive written details of your employment (like rate of pay, job title, hours of work, entitlement to holiday).

clogger

I was in a full time job earlier in the year so im over tax threshold for year 11/12 so even though i am a low earner now I suspect I should pay tax till april at least. dont fancy being a law breaker but in all other respects its a great job. not sure what to do about it boss has my P45 as requested so I think its his responsibillity to sort things out.

LittleVoice

clogger wrote: »

I was in a full time job earlier in the year so im over tax threshold for year 11/12 so even though i am a low earner now I suspect I should pay tax till april at least. dont fancy being a law breaker but in all other respects its a great job. not sure what to do about it boss has my P45 as requested so I think its his responsibillity to sort things out.

In that case your current employer should be arranging a tax repayment for you. The problem may be that, as you are his only employee as he is presumably self-employed, he doesn't have any tax from elsewhere to nett against a repayment to you.

I'm not up to speed with what HMRC require in these circumstances but maybe someone else will come along with a quick answer soon - or I will find out and return later.

He may also not have worked out how to register with HMRC as an employer.

agrinnall

No, you still won't be paying tax, although you have earned over the threshold your personal allowance is divided between each pay period, so every week you can earn up to about £143 before you need to pay tax for that period. This assumes you are on the standard 747L tax code, if you're on a lower code then it could bring you into tax earlier.

LittleVoice

agrinnall wrote: »

No, you still won't be paying tax, although you have earned over the threshold your personal allowance is divided between each pay period, so every week you can earn up to about £143 before you need to pay tax for that period. This assumes you are on the standard 747L tax code, if you're on a lower code then it could bring you into tax earlier.

To clarify:

If you earned £400 in Week 1 and only £40 in Week 2, you would not pay tax on the £400 and simply no tax on the £40. In Week 2 you would be due a refund.

The tax allowance is divided into weekly (or monthly) amounts but is aggregated through the year.

That is why the OP will be due a refund because of the payment of tax in the earlier part of the year.

clogger

Thanks for that I understand a little more now, and that also explains why after also a short period on JSA also in this same tax year I was due a tax refund which I didnt at the time fully understand. I was in a long standing full time job untill recently than left with VR had a short period on JSA then started a part time job all in the same financial year.