Personal Allowance help

drt1710

Hi
I'm trying to help my daughter with her personal allowance as she is having some problems.

She is 21 years old, single.

The reason she needs help is that Tax office recently adjusted her allowances which resulted in her being taxed very heavily on her part time job. She earned in a month £280 and was taxed £166, needless to say she was livid.

She has 4 jobs at the moment.

Supply teaching tax code 461L
County council supply teaching tax code BR
Subway 482T
Shoezone 233L

The first jobs she never knows how often she will work as it is supply, but the first job she earns £80 per day, the second she earns £102 per day, the third is pretty much set at £47 p/w, the fourth pretty much set at £41 p/w.

Is there anyone that can help us decide which is the best way to use up her £9440 tax allowance please?

Also, as she is supply teaching, could she claim travel expenses against tax?

Thanks in advance

Duncan

CLAPTON

drt1710 wrote: »

Hi
I'm trying to help my daughter with her personal allowance as she is having some problems.

She is 21 years old, single.

The reason she needs help is that Tax office recently adjusted her allowances which resulted in her being taxed very heavily on her part time job. She earned in a month £280 and was taxed £166, needless to say she was livid.

She has 4 jobs at the moment.

Supply teaching tax code 461L
County council supply teaching tax code BR
Subway 482T
Shoezone 233L

The first jobs she never knows how often she will work as it is supply, but the first job she earns £80 per day, the second she earns £102 per day, the third is pretty much set at £47 p/w, the fourth pretty much set at £41 p/w.

Is there anyone that can help us decide which is the best way to use up her £9440 tax allowance please?

Also, as she is supply teaching, could she claim travel expenses against tax?

Thanks in advance

Duncan

clearly the sum of her tax allowances is too high so she is paying too little tax

one needs to know the likely YEARLY earnings for each job to advise on best use of her tax allowances.

patanne

It looks to me as if both the Subway & Shoezone tax codes are too high. Also her current tax codes add up to more than a normal personal allowance, they should add up to 944. For instance Subway income is £47/w which is £2444pa so her tax code for this job should be under 244. Shoezone at £40/w is £2080pa so her code should be under 208. Leaving almost 500 to be shared between the other jobs. You need to get her to sit down and work out how much she realistically expects to earn from each employer & get the tax codes allocated better. Don't let HMRC put her off, she does have the choice (as long as the total is only 944!)

ETA sorry don't know about the travel expenses.

zygurat789

CLAPTON wrote: »

clearly the sum of her tax allowances is too high so she is paying too little tax

one needs to know the likely YEARLY earnings for each job to advise on best use of her tax allowances.

Maybe but not definitively.

You cannot claim home to work travel.

I think that whatever codes you allocate to these jobs there may well be an over/under payment at the end of the year. The above requested information will help.

nomunnofun

Two worrying things first:

The allowances add up to almost £11800 - way over the standard personal allowance of 9445

Two of the codes have 'L' suffixes. 'L' codes are usually adjusted at the start of the tax year - your daughter would benefit from two such adjustments.

If it were me I would be covering the two 'pretty much set' jobs in order that tax is paid at neither.

Shoezone - code 213T (allowing 2132 of earnings tax free)
Subway - code 244T (allowing 2444 of earnings tax free)

We then have around 4869 of allowances remaining against the other two jobs. If she definitely will earn £4869 at one of them - code 486L should be operated against that and code BR at the other. Otherwise, it will be a best estimate.

e.g. estimated earnings of 2000 at one, 2869 at another. Code 200L at one, code 286T at the other. HMRC will operate the codes as you wish - they do not have the information that your daughter possesses.

drt1710

Should add that she has recently had letters changing her tax codes, I couldn't see how to add them here, so they are on photobucket, although I'm not allowed to add a link, so please add the w w w before the link

s166.photobucket.com/user/duncan171/library/Tax?sort=3&page=1

Racs is supply and AJD rogers is subway

With regard to how much likely earnings are on supply and Pembrokeshire Council, it is impossible to know. One week she might get no work, but the next 5 days. She is currently working supply agency more than Pembrokeshire council by at least 5 days to 1

Duncan

drt1710

Thanks for all the replies. Sorry that I can not add the information requested about likely earnings on the 2 supply jobs, but it's impossible to know them.

I looks like the best thing to do would be to allocate the allowances as follows:

Shoezone - code 213T (allowing 2132 of earnings tax free)
Subway - code 244T (allowing 2444 of earnings tax free)
Racs supply - code 350
Pembrokeshire - code 136

Does that look right?

Another question; If during the course of a year, she does not earn up to her personal allowance from all 4 jobs combined, but has paid tax on any 1 job if she gets extra hours that are taxed, can she claim a refund and if so what time of year?

Cheers

Duncan

patanne

Yes she can claim a refund after the end of the tax year. As we are over half way through the year it might be better to get her to add up all her earnings from each source and see what those figures look like. The first 2 codes don't allow anything for not getting paid a couple of weeks of the year, so may be a bit too precise.

zygurat789

drt1710 wrote: »

Thanks for all the replies. Sorry that I can not add the information requested about likely earnings on the 2 supply jobs, but it's impossible to know them.

I looks like the best thing to do would be to allocate the allowances as follows:

Shoezone - code 213T (allowing 2132 of earnings tax free)
Subway - code 244T (allowing 2444 of earnings tax free)
Racs supply - code 350
Pembrokeshire - code 136

Does that look right?

Another question; If during the course of a year, she does not earn up to her personal allowance from all 4 jobs combined, but has paid tax on any 1 job if she gets extra hours that are taxed, can she claim a refund and if so what time of year?

Cheers

Duncan

That's impossible to tell.

The job where your daughter earns most should have the highest code.
Since we are 8 months into the year multiply gross to end November by 1.5 and subtract 100. This is the code number.
Repeat with th next best paid job
Etc until you reach a total of 944.

If you pay too much tax of course you can claim a refund just like if you don't pay enough HMRC can demand the shortfall

nomunnofun

drt1710 wrote: »

Thanks for all the replies. Sorry that I can not add the information requested about likely earnings on the 2 supply jobs, but it's impossible to know them.

I looks like the best thing to do would be to allocate the allowances as follows:

Shoezone - code 213T (allowing 2132 of earnings tax free)
Subway - code 244T (allowing 2444 of earnings tax free)
Racs supply - code 350
Pembrokeshire - code 136

Does that look right?

Cheers

Duncan

That would be my preference simply because the more definite hours remain free of tax and at least we have that to start off with.

In most cases I would be going with zygurat's solution (have as many tax free allowances covered at one source as possible)but you have indicated that it is impossible to state what the two other jobs will reaiise and it all becomes a bit of a guessing game.

zygurat789

There is a further compklication. If you have code numbers for each job then you need to receive pay for the last week or month of the year otherwise you will not make full use of the allowances which is why it is better to have the code on as few as employments as possible.
I got the impression that your daughter was a teacher and that the Subway & Shoezone were temporaryish jobs whereas she was always likely to be a teacher and she should soon earn £4,000 in each of her teaching jobs.
When one of my daughters did this she was never out of work.
Whatever happens come month 12/week52 you should add all the employmemts together to make sure she has received all her allowances. Any repayment claim will have to be accompanied by P60s so they need to be kept safe