Working part-time: how does tax work?

mark45

Hi. I have a part-time job which is work is allocated on a monthly basis and work variable hours. I only know maximum one month in advance how many hours I will work.

In this case how does tax work? I cannot be sure if I will exceed the personal limit yet tax is automatically deducted? So do I file a tax return next year when I can prove I have not earned over £8,105 (the personal limit) would I then get a rebate? Does this work the same as National Insurance? As some months when I earn £981.22 for example I got deducted tax & National Insurance. When this month I earned £476.52 and did NOT get deducted for National Insurance.

Thanks for any help.

Uncertain

Yes, you can always get a refund for up to six years if you have paid too much tax.

mark45

Ok that's great thanks. So I guess would you recommend getting a refund on the anniversary of employment (if it lasts that long haha) or if I get terminated?

McKneff

Uncertain wrote: »

Yes, you can always get a refund for up to six years if you have paid too much tax.

###

4 years.......... not 6

McKneff

mark45 wrote: »

Hi. I have a part-time job which is work is allocated on a monthly basis and work variable hours. I only know maximum one month in advance how many hours I will work.

In this case how does tax work? I cannot be sure if I will exceed the personal limit yet tax is automatically deducted? So do I file a tax return next year when I can prove I have not earned over £8,105 (the personal limit) would I then get a rebate? Does this work the same as National Insurance? As some months when I earn £981.22 for example I got deducted tax & National Insurance. When this month I earned £476.52 and did NOT get deducted for National Insurance.

Thanks for any help.

If you are employed and pay tax and NI, you do not need to fill in a tax return.
Tax is taken off your salary automatically. The HMRC know exactly how much you pay because your employer tells them so.
NI is only payable over a certain amount per week, I believe it is about £14o odd, that is why you didnt pay any that month.
Just study your payslip each month, knowing or not knowing your rota is irrelevant.

You really dont need to worry about it.

McKneff

By the way, if you were due any tax back, it would be refunded to you through your payroll.

You are over thinking things.

chrisbur

Is this your only taxable income?
What tax code is being used at the moment?
When you started did you hand in a P45 or complete a P46, if so what details did you fill in?

If you are on the correct tax code your tax will be correct whatever you earn, questions above will help to find out how you can get on the correct tax code.
NI is decided on a pay period basis; what you earn for the year will not affect it.

dancingfairy

It's done cummulatively (assuming you are on the normal tax code) . So you get an allowance of 600 a month (ish) tax free. So in the first month you have an allowance of 600 and if you earn more than that you pay tax, if not you don't. Month 2 you get an additional 600 allowance so your total tax free allowance is now 1200 and if you have earnt over this in the 2 months you pay tax and if you have paid tax and shouldn't have then it would come back to you in your pay packet. Basically it generally evens itself out over the year.
df

mark45

Thanks for the replied guys. So I gather not much to worry about since it averages itself out over the year.

Not filled in a P46 and I don't think a P45. At least I don't remember, all I had to do was fill in my contact and bank account details when I got accepted for the job, this was forwarded to payroll apparently...

My last (2nd) payslip put me on the taxcode: 0T W1/M1

chrisbur

mark45 wrote: »

Thanks for the replied guys. So I gather not much to worry about since it averages itself out over the year.

Not filled in a P46 and I don't think a P45. At least I don't remember, all I had to do was fill in my contact and bank account details when I got accepted for the job, this was forwarded to payroll apparently...

My last (2nd) payslip put me on the taxcode: 0T W1/M1

You are allmost certainly being overtaxed if this is your only job, the code 0T W1/M1 is used when an employee has not handed in a P45 and has not completed a P46. You need to get onto emergency tax by filling in a P46. Did you have any taxable income or taxable benefit before starting this job?

mark45

Thanks for the prompt reply. I am at work and have just received my next payslip.

I am still on the same tax code.

This time however, I have been charged National Ins. probably because I've earned more than last month.

This is my first job *ever*, so have not previously had taxable income.

I was tax exempt from my savings account (within personal limit), had to fill in a form for that as well.

Do I simply fill in a P46 form available from the HMRC website and hand to employer?

Do you I should contact HMRC myself - e.g. write a letter to sort this out?

Thanks for advice.