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Tax Question - Student

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Hey everyone sorry If I sound a bit daft for not knowing but im a complete novice at the whole tax thing - Im a student.

Basically I will be doing a placement year soon so therefore will be earning a wage higher than the personal allowance, however have a part time job.

Not too sure whether to quit the job I currently have completely(As I have to move away) or stay with them on a 0 hour contract for a year and potentially work a few days in the holidays.


Was just wondering do I need to do anything about my tax codes or anything so I don't get taxed too much/too little etc?

Thanks a lot!

Connor

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  • jem16
    jem16 Posts: 19,584 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    cornygun wrote: »
    Hey everyone sorry If I sound a bit daft for not knowing but im a complete novice at the whole tax thing - Im a student.

    Basically I will be doing a placement year soon so therefore will be earning a wage higher than the personal allowance, however have a part time job.

    Not too sure whether to quit the job I currently have completely(As I have to move away) or stay with them on a 0 hour contract for a year and potentially work a few days in the holidays.


    Was just wondering do I need to do anything about my tax codes or anything so I don't get taxed too much/too little etc?

    Thanks a lot!

    Connor

    What tax code is your part-time job using? I'll assume it was 944L for the last tax year.

    When you start your placement, you will have to complete a New Starter form. You should tell them that you have another job. Once you do this you will be given a BR tax code.

    Once you have your first payment, you should then phone HMRC and ask them to swap the tax codes around so that your main tax code of 1000L (for this tax year) will be on the placement and BR on the part-time job.
  • Delphina
    Delphina Posts: 94 Forumite
    IF YOU ARE GOING TO WORK FOR BOTH EMPLOYERS:

    Not knowing how much you earn from each job, when the placement job starts, and , if applicable, how long the jobs will last, I cannot give you the best answer to avoid paying the wrong amount of tax at both jobs!

    The typical answer is to use the full allowance at the job earning the most and BR code at the other job, or to split the allowance between the two jobs either equally or unequally. But there are more details involved, depending on the info as per my previous paragraph.

    IF THERE WILL BE NO MORE INCOME FROM THE CURRENT PT JOB SOON FOR THE WHOLE TAX YEAR (until 05/04/15):

    There are two options

    1) Leave the job and get a P45 from HR. Give that to the HR at the placement job. You should be taxed correctly then. Always do this when you have a new job in the same tax year, except if you are keeping the old one, too.

    2) If you are going to remain on the book with the current employer, meaning there is no P45 due to the zero-hour contact, when you start the placement job, fill in P46 and tick statement B. The new job should be taxed correctly. But there could still be an under or overpayment of tax at the end of the year.

    :)
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