16 year old son, first part time job, should he be paying tax?

Hi all
I wonder if anyone could offer me advice.

16 year old son is still at school, and has just started his very first part time job - in Asda, working fourteen hours per week. His first payslip came today, and he was paid for 21 hours March/April, (week 56 applies) with 26.06 deductions in income tax. Tax code BR 1.

I would rather have some idea whether this is right before he draws attention to himself by asking his employer...or I phone the tax office and look ignorant.

I have no clue...I thought as he was still at school, and was working such few hours he would not pay tax?

thanks in advance
«1

Comments

  • paulus
    paulus Posts: 74 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    He shouldn't be paying tax. Asda should ask him to complete a P46 on which he will certify that this is his main employment. He should go on emergency code rather than the basic rate that he is on, and his earnings are likely to be below the taxable limits.
  • 07311022
    07311022 Posts: 99 Forumite
    Ask him to ask his employers for a P46. He has probably been taxed at BR because he didn't have one (or obviously a P45 from a previous employer - as he was still at school) This is probably the reason he has been taxed. As his next payday is now in a new tax year, the P46 will give him his tax free allowances, and if his pay is low enough (i.e. less than £5229 per annum- then he probably won't pay tax in future. Was the pay he received before or after 6 April. If it was made before then he will need to claim it back direct from Inland Revenue, as Asda won't be able to refund tax from previous tax year though current salary. Please also note that if you do need to speak to Inland Revenue, then you must ask your son to do this (obviously with a bit of guidance), as they won't discuss his tax with anyone else.








    Vashti wrote: »
    Hi all
    I wonder if anyone could offer me advice.

    16 year old son is still at school, and has just started his very first part time job - in Asda, working fourteen hours per week. His first payslip came today, and he was paid for 21 hours March/April, (week 56 applies) with 26.06 deductions in income tax. Tax code BR 1.

    I would rather have some idea whether this is right before he draws attention to himself by asking his employer...or I phone the tax office and look ignorant.

    I have no clue...I thought as he was still at school, and was working such few hours he would not pay tax?

    thanks in advance
  • Vashti
    Vashti Posts: 174 Forumite
    Fantastic..thank you So much for the advice.

    Now I understand.

    What a great forum this is :)
  • Vashti
    Vashti Posts: 174 Forumite
    07311022 wrote: »
    Ask him to ask his employers for a P46. He has probably been taxed at BR because he didn't have one (or obviously a P45 from a previous employer - as he was still at school) This is probably the reason he has been taxed. As his next payday is now in a new tax year, the P46 will give him his tax free allowances, and if his pay is low enough (i.e. less than £5229 per annum- then he probably won't pay tax in future. Was the pay he received before or after 6 April. If it was made before then he will need to claim it back direct from Inland Revenue, as Asda won't be able to refund tax from previous tax year though current salary. Please also note that if you do need to speak to Inland Revenue, then you must ask your son to do this (obviously with a bit of guidance), as they won't discuss his tax with anyone else.


    Meant to say, paydate on slip is 14/4/07. Does this mean he can claim it back from Asda directly for a refund?
  • 07311022
    07311022 Posts: 99 Forumite
    So long as he has had not other earnings prior to 6.4.07, then Asda should be able to refund direct through the next salary run. He needs to tick the statement saying that this is his only/main job, and they should by able to operate 522L on an accumulative basis. Once they change the code on their payroll system, then it will recalc tax and hey presto - refund should be received. If for some reason they operate 522L on Week/Month 1 basis, don't worry he will still get the tax back, but may need to wait for Inland Revenue to send coding change to Asda changing it to 522L accumulative. It should be done on accumulative basis straight away though, but unfortunately depends on how experienced the payroll person is.


    Vashti wrote: »
    Meant to say, paydate on slip is 14/4/07. Does this mean he can claim it back from Asda directly for a refund?
  • barvid
    barvid Posts: 405 Forumite
    > I thought as he was still at school, and was working such few hours he would not pay tax

    Just to clarify, the hours worked are relevant, as tax is based on earning over a set figure - the fact that he's still at school or a student doesn't in itself mean he's not liable for tax. If he earned £100,000 a year while 16 and at school, he'd pay a lot of tax!! :-)
  • Vashti
    Vashti Posts: 174 Forumite
    Of course. I am still getting used to him being a so called adult...I forget he is in the big world now.


    barvid wrote: »
    > If he earned £100,000 a year while 16 and at school :-)


    ....Richard Branson the Second! (Not) :D
  • Lesley998
    Lesley998 Posts: 41 Forumite
    Thanks for posting this...my daughter is starting a similar job next week and I shall tell her to make sure she fills out a P46.
  • Hi, just to add to this particular thread i was wondering if anybody would be able to help me.

    I'm currently paying tax at my job, I've been put on emergency tax for the past year and I am almost certain I am due a rebate. I am in full time education, this is my primary job, and i only recently turned 18. What I am confused about is how I go about getting it. I know payroll called up my employer and asked to confirm my NI as my tax code was wrong, but do I need to make an additional call to inland revenue, and if so which department do I go to?

    (I'm sat here being very confused so any help would be very much appreciated)

    Thank you:p
  • Hoddie_2
    Hoddie_2 Posts: 622 Forumite
    Going back to the original query, Asda always use code BR on the first wage, regardless of whether you hand a P45 in or complete a P46. As the payment was W56, this indicates it was treated as having been paid during the 2006/07 tax year, and as a result they will not be able to issue the repayment with his wage. Your son will have to send his P60 to HMRC to claim.
    What I am confused about is how I go about getting it. I know payroll called up my employer and asked to confirm my NI as my tax code was wrong, but do I need to make an additional

    You need to call the HMRC office that deals with the affairs of your employer. Ask them for the telephone number.
    Quidco savings: £499.49 tracked, £494.35 paid.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.3K Banking & Borrowing
  • 252.8K Reduce Debt & Boost Income
  • 453.2K Spending & Discounts
  • 243.3K Work, Benefits & Business
  • 597.8K Mortgages, Homes & Bills
  • 176.6K Life & Family
  • 256.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.