tax on 18 year old wage

nutty1

son just started work and got taxed £20 on a £93 wage. does this seem right. and he is a student

ukbill69

He probably got a emergency tax rate. Ring your tax office and they should get him on a normal tax rate, don't worry, tax should be refunded, so he wont pay any tax for a while. Under £100 per week or £5000 per year, don't pay tax and low national insurance. If hes paying emergency tax then his tax code should be 503L. It doesnt matter if hes a student, he pays tax like everyone else in the country!

Bossyboots

emergency tax isn't 503 L. Thats the basic personal allowance. If that was right, then I have been on emergency tax all year.

ukbill69

Sorry my mistake. Read this for info: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/ReclaimingTax/DG_10013075

tiamaria

My 18 year old has just got his tax refunded after 6 months, on a similar wage and tax amount. He was on code BR w1 ( i think this is correct) and it finally got changed after many phone calls to the IR and even after a letter was sent from them to his employer it took a while for them to sort it. he will get it back but will probably have to hassle for it,

littleange

If he's only working in holidays he can fill in a P38

The personal allowance is currently £5,035 so you shouldn't really pay any tax on below £97 a week

You could try filling in a P46

jem16

Bossyboots wrote:

emergency tax isn't 503 L. Thats the basic personal allowance. If that was right, then I have been on emergency tax all year.

It depends on the suffix.

503L with no suffix is the normal tax code for someone under 65. This code would be applied cumulatively over the tax year.

503L with the suffix Week/Month 1 is the emergency tax and is non-cumulative.

If you start work at the beginning of the tax year it will make no difference. However if you start part way through a tax year, it is important.

littleange

You could just wait until the 5th April now and fill in a form to get a repayment for 2006/07

Bossyboots

jem16 wrote:

It depends on the suffix.

503L with no suffix is the normal tax code for someone under 65. This code would be applied cumulatively over the tax year.

503L with the suffix Week/Month 1 is the emergency tax and is non-cumulative.

If you start work at the beginning of the tax year it will make no difference. However if you start part way through a tax year, it is important.

The original post to which I replied merely stated 503L was the emergency code with no qualification with regard to a suffix. I stated quite correctly that 503L as posted was not the emergency code.

If he's only working in holidays he can fill in a P38

As the OP said he has just started work, it seems that he is not just working holidays as its currently term time. Filling in the P38S would allow him to receive his pay untaxed, providing he knows it is not going to go over the basic personal allowance in the tax year. Its a useful system for those who only want to work holidays and saves all the angst of claiming tax back but it does fall under scrutiny in a tax audit so it is important for employers to make sure they get it right.

jem16

Bossyboots wrote:

The original post to which I replied merely stated 503L was the emergency code with no qualification with regard to a suffix. I stated quite correctly that 503L as posted was not the emergency code.

I realise that was what you meant.

However a lot of people don't understand the importance of the suffix and don't quote is as part of the code. I thought it would be helpful to clarify this.

isasmurf

It sounds as if he's not submitted a P46. He should ask his employer for one, fill it in and hand it back. The employer will then sort out his tax code.

Bossyboots wrote:

The original post to which I replied merely stated 503L was the emergency code with no qualification with regard to a suffix. I stated quite correctly that 503L as posted was not the emergency code.

Actually 503L is the emergency tax code as detailed here. It is, as you state, usually applied on a Week 1 or Month 1 basis.