Part time work, should i pay tax?

My daughter has finished school, age 16 and is going to college in September. she has managed to get a part time job with Next working upto 20 hrs a week.

She has just received her first pay slip and has paid tax, is this correct??

Comments

  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Did she fill in a p46 when she started, if not she should do now.

    It depends on how much she earns as to whether she pays tax or not but as she hasnt used her allowances up since April, she shouldnt be paying tax and it will be refunded through payroll once Next get her tax code from HMRC.

    Working on a whole year, the way it works is

    Allowance per year is £8105, divide that by 52. (weeks)
    The product of that is what you can earn before paying tax.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    If she earns more than £146 (the primary threshold) in a week then she will pay 12% national insurance on the excess. She can't get that back.

    If she earns more than £156 in a week then she will pay 20% income tax on the excess. She can get that back if in the year April 2011-April 2012 she earns less than £8,105.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    The OPs daughter has just received her 1st payslip in this tax year so I presume she has done no work in the year 2011-2012, probably at school.

    Will she still be working there when she goes to College.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Seems like a BR code, seems payroll havent processed the P46 yet.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    She could also investigate whether a P38(S) is applicable, which would mean paying no tax at all.

    http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=dul2K7lzMkw&formId=758
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