Son's being taxed

craftingqueen_2

Please can anyone help me, my son (16) has a part time job and is being taxed when he shouldn't be as he is still at school and doesn't earn that much. He has spoken to his employer and they have said they need a letter from the tax man . Any advice please as not sure what we have to do.

bbk87

Is he still studying for GCSE's?

craftingqueen_2

Yes he is .

Torry_Quine

craftingqueen wrote: »

Please can anyone help me, my son (16) has a part time job and is being taxed when he shouldn't be as he is still at school and doesn't earn that much. He has spoken to his employer and they have said they need a letter from the tax man . Any advice please as not sure what we have to do.

The fact that he's still at school is irrelevant.

agrinnall

His employer should have completed a new starter checklist and in all probability put him on a tax code of 1060L, which would have meant no tax to pay if he's earning less than £203 a week.

However, as they haven't done that it's probably easiest if he/you calls HMRC to get them to issue a tax code to the employer - 0300 200 3300, ring at 7:45 for the best chance of getting answered quickly. Make sure you have his NI number and if possible the employer tax reference.

Lokolo

Anyone can pay tax even if they are still studying, if they earn above their personal allowance. I did when I was at school. As agrinnall says above, check the tax code on the payslips.

craftingqueen_2

Thank you agrinnall for your help.

craftingqueen_2

Having looked at he's payslip it's 0t1 and he won't be earning no were near the personal allowance.

xylophone

Having looked at he's payslip it's 0t1 and he won't be earning no were near the personal allowance.

https://www.mykeypay.com/Page/the-0T-0T-W1-or-0T-M1-tax-codes

thenudeone

The employer is incorrect.

HMRC does not routinely assign tax codes before people start work for the first time (or the first time in each tax year).

In the absence of a P45 from a former employer, the employer has a duty to ask the correct questions in order to determine the correct tax code to use until HMRC formally assign a different one.

This used to be done by asking the employee to complete a form P46 but this was withdrawn few years ago which left employers to make up their own questionaires (or new starter checklist) to get the info (a bad move IMO).

For most people who only work in 1 job at a time the resulting tax code will allow them to earn 1/12 of the annual personal allowance (c.£10k) each month (or 1/52 each week).

Some smaller employers won't even ask an questions, which will result in tax being charged on every penny of earnings.

You son should ask to speak to whoever does the payroll and insist that they go through the proper questions to assign the correct tax code. This should correct the tax situation and will include a refund for the tax incorrectly charged so far.

xylophone

https://www.gov.uk/new-employee/employee-information

Old form - http://www.lse.ac.uk/intranet/staff/humanResources/reviewingAndRewarding/salaryInformation/pdf/p46.pdf