Paying tax on summer job when working full time

DannyWhoWorks

Hey, I am a student with two part time jobs.

Both Equal to under my tax allowance for the year, so I have my tax code split between two jobs.

Because it’s the holidays, I have worked a lot more hours than I usually do at one of my jobs and even though at the end of the year my total income will still be below my tax allowance, When split by 12 months (so monthly allowance for one of my jobs) the amount I get for this month will be higher than my monthly allowance. This will then be taxed, and I know I can get it back at the end of the tax year, but I really need this money before then!

Anyone any ideas how I can overcome this?

Thank you!

molerat

Up to the end of August you can earn up to 5/12 of your annual allowance before paying tax, will you pass that threshold ? If you have and you continue working you will probably have to suck it up until it sorts itself or the end of year.

McKneff

You cant get a tax refund half way through a year when you know youre going to do more work during the rest of the year.

You will have to wait till April 2013 and claim it back.

jem16

DannyWhoWorks wrote: »

This will then be taxed, and I know I can get it back at the end of the tax year, but I really need this money before then!

Once your income gradually drops back each month after the holidays you will get some back. It might take a couple of months or so depending on exact amounts but it's likely to be sorted before the end of the tax year.

Nothing you can do though. The cumulative tax code is working as it should.

chrisbur

Sorry there is nothing that you can do, this is the way tax works.
However you will not have to wait untill the tax year end to at least get some possibly all of your tax back. Once your earnings drop below the monthly tax allowance figure you will start to get some of this tax back through your wages. How quickly the tax comes back will depend on your monthly earnings, and with a split code one job's tax may well get fully refunded and not the other so some may have to be claimed after the tax year ends.

agrinnall

If you earn less than the monthly tax free allowance once you get past this summer working you will start to get the overpaid tax back in your pay, and by your March 2013 pay it will have sorted itself out.

CLAPTON

full facts always helps

DannyWhoWorks

Thanks so much for the replies guys!

I think, I should be ok then, because, For April, May and June I worked only a few hours and roughly earnt £200, where my allowance a month is £538. So that's a relief! Thanks so much!

jem16

DannyWhoWorks wrote: »

Thanks so much for the replies guys!

I think, I should be ok then, because, For April, May and June I worked only a few hours and roughly earnt £200, where my allowance a month is £538. So that's a relief! Thanks so much!

Well for July, you have a total of £2152 before you will pay any tax. For August it will be £2690.

So unless the total of April, May, June, July and August passes this threshold you will still not pay tax, provided you are on a cumulative tax code and not a Mth1 code.