Hello teenager tax payment request.

HamiltonPOLE

Right guys me and and a mate both work at the same place and are both saving (Im 17 and the other is 16).
Due to attending college we both earn around £500 a month. Now summer holiday came early for us (study leave), my friend the decided to step his hours up a notch and got £1200 odd, whilst I on the other hand only got £700. He told me he got taxed as his earnings for the month surpassed £1000. Usually he doesn't get taxed same with me, but i on the other hand have never been paid over £1000.

Now we both have decided to work 6/7 days a week this month, as we haven't got nothing else sensible to do. Our target each is around £2000.
Now here comes my questions will i lose the majority in tax? Just want to know the (%) so i can calculate if its worth it doing sooooo many extra hours.

Things that may help you answer my question

FT Student
+17 years old
+Tax code 810L
+Payed monthly
+Haven't payed tax before, with new tax code (never gained over £1000)

HamiltonPOLE

May post the same thread in other sections, if they seem more active. Need quick answers shifts need snapping up before others beat me to it.

whitewing

My husband's shifts vary. We find this to be accurate.

http://www.moneysavingexpert.com/tax-calculator/

HappyMJ

It's always worth working more shifts. You will be taxed on anything you earn in excess of £8,105 over the whole tax year at 20% and you will also have national insurance deducted of 12%. This is only on the excess income. If you earn less you can get the income tax back (not the NI).

HamiltonPOLE

whitewing wrote: »

My husband's shifts vary. We find this to be accurate.

http://www.moneysavingexpert.com/tax-calculator/

Bit confusing at first. Least i learn't something new . Tax Free Allowance £8,109 YEAR £676 PER MONTH.

John_Pierpoint

HamiltonPOLE wrote: »

Bit confusing at first. Least i learn't something new . Tax Free Allowance £8,109 YEAR £676 PER MONTH.

Here are the personal allowances:
http://www.hmrc.gov.uk/incometax/personal-allow.htm#1
Understanding your Pay As You Earn annual Income tax coding is here:
http://www.hmrc.gov.uk/paye/intro/tax-codes.htm
Trying to understand the weekly tax called "National Insurance" starts here:
http://www.hmrc.gov.uk/rates/nic.htm

System

HamiltonPOLE wrote: »

Right guys me and and a mate both work at the same place and are both saving (Im 17 and the other is 16).
Due to attending college we both earn around £500 a month. Now summer holiday came early for us (study leave), my friend the decided to step his hours up a notch and got £1200 odd, whilst I on the other hand only got £700. He told me he got taxed as his earnings for the month surpassed £1000. Usually he doesn't get taxed same with me, but i on the other hand have never been paid over £1000.

Now we both have decided to work 6/7 days a week this month, as we haven't got nothing else sensible to do. Our target each is around £2000.
Now here comes my questions will i lose the majority in tax? Just want to know the (%) so i can calculate if its worth it doing sooooo many extra hours.

Things that may help you answer my question



FT Student
+17 years old
+Tax code 810L
+Payed monthly
+Haven't payed tax before, with new tax code (never gained over £1000)

1) Is this your first/only job since 6 April.
2) Does your tax code on payslip show 810L followed by any of the following X, M1, MTH1, W1 or WK1.

If 1 and 2 are Yes - telephone (or write) to HMRC asking them to send a cumulative code to your employer.

If 1 is Yes and 2 is no, it should sort itself out in time when your hours and pay reduce back to their normal level. During the months you earn less than your tax allowance the unused part will be set against your previous earnings resulting in a small refund each month.

CLAPTON

to tell you how much tax you will pay at the end of july we need to know
-how much you have already earnt since 6th april 2012
-how much tax you have already paid since 6th april (zero presumably)
-taxcode presumably 810L (with no letters/numbers like wk1, m1 after)

this is because you have a tax free allowance of 8105 per year or 676 per month; however the allowance is cumulative so if you haven't use the full allowance for april, may, june then it's carried over to July) so by July you can earn up to 2,702 in total for the 4 month before tax)

Mrs_Arcanum

Whenever I earn above the taxable threshold for the month I get taxed. The next month when pay is back to normal I get a refund.

Savvy_Sue

HamiltonPOLE wrote: »

May post the same thread in other sections, if they seem more active. Need quick answers shifts need snapping up before others beat me to it.

You don't seem to have done that, which is good: for future reference

DUPLICATION

Hi, Martin’s asked me to post this in these circumstances: Sorry, your post [would have] had to be deleted as it has been posted elsewhere and that’s one of the site’s rules (please see this rule). If you have any questions about this policy please email [EMAIL="forumteam@moneysavingexpert.com"]forumteam@moneysavingexpert.com[/EMAIL]

HappyMJ wrote: »

It's always worth working more shifts. You will be taxed on anything you earn in excess of £8,105 over the whole tax year at 20% and you will also have national insurance deducted of 12%. This is only on the excess income. If you earn less you can get the income tax back (not the NI).

What Happy said:
you get the tax back, but the NI is non-cumulative. So if you get the choice of lots of hours one week and none the next, or two more even weeks, it may be better to go for two even weeks if they fall below the NI threshold. At least at your age, when you won't have a full NI year anyway ...