Temporary Work Tax?

summerstudent

Hi guys,

Brief background:
I'm a student and will be undertaking a 10 week paid internship this summer. The total amount I will earn over this period falls inside the personal yearly allowance, however the position is paid pro rata, and the total yearly salary falls in the 20% tax bracket.

In previous years internships have put me on the NT tax code, meaning I pay no tax on my monthly pay packet as per year my earnings do not exceed the allowance.

I've approached the company I will be working for and requested that I am again placed on the NT tax code to avoid unnecessary paperwork and don't 'lose' money I am entitled to now. (I need it to pay off back a loan to my dad + for living expenses). Their official response was this:

"We do not process the P38, as we can not guarantee they do not have earnings from elsewhere - if the intern's earnings are less that £8,105 for 2012/13 tax year they are able to reclaim any taxed paid directly from HMRC using their P45."

The burden of this surely falls on me, not them? Who's responsibility is this, and is this an acceptable stance for them to take?

Thanks guys
SS

getmore4less

Phone HMRC and ask if they can ignore a P38

Will a P45/P46 work I think they have to process those,

No income this tax year so far and no other job should give you all the personal allowance for this job should reduce the tax due maybe all of it from the unused months.

end of job a p50 might be possible to get any overpaid tax back

chrisbur

The P38(S) does not make the employer responsible for earnings in other employments, it is the student who declares that his earnings will be below the yearly level for tax to be deducted, but the employer does not have to use the P38(S) system. In the employers guide it is shown as something the employer is allowed to do not something they have to do.
"You can use a special procedure for employees who are students"

When you start employment you should be offered a P46 (if one is not offered request one) to complete if you have no P45, on this you can declare that this is your first employment this tax year and your employer can then operate the emergency tax on a cumulative basis which will give you tax allowance going back to April 5. If tax is paid in the employment then you can use P50 with your P45 at the end of the employment and declare on that form you will have no more taxable income for this year and you will get back all tax that would be due back at the year end. If your earnings are under the tax threchold then all tax will be refunded.