Should I cut my hours.

HamiltonPOLE

Hi.

I'm currently doing my summer job during my summer break.
I will be earning approx £1060 - £1120 this month.
Now I'm wondering will i be taxed more if I pass a certain threshold?

I would get a tax refund if I do pay tax, but I'm trying to maximise my earnings before uni starts again.

Note: I only work during the summer

SeniorSam

Maximising earnings = working more = LOGIC

CLAPTON

HamiltonPOLE wrote: »

Hi.

I'm currently doing my summer job during my summer break.
I will be earning approx £1060 - £1120 this month.
Now I'm wondering will i be taxed more if I pass a certain threshold?

I would get a tax refund if I do pay tax, but I'm trying to maximise my earnings before uni starts again.

Note: I only work during the summer

you pay no tax if your earnings are less than 10,600 per annum (6th april 2015 to 5th april 2016)
after that you get taxed at 20% on the EXTRA
plus NI at 12% over 155 per week

MDMD

HamiltonPOLE wrote: »

Hi.

I'm currently doing my summer job during my summer break.
I will be earning approx £1060 - £1120 this month.
Now I'm wondering will i be taxed more if I pass a certain threshold?

I would get a tax refund if I do pay tax, but I'm trying to maximise my earnings before uni starts again.

Note: I only work during the summer

As PAYE spreads your tax allowance over the year you may pay some tax.
If you stop working you can complete a P50 form to get some or all of the tax back. They may not always give you all the tax back straightaway as the calculations usually just work it out based on the tax allowances due up to the date you claim.

CLAPTON

MDMD wrote: »

As PAYE spreads your tax allowance over the year you may pay some tax.
If you stop working you can complete a P50 form to get some or all of the tax back. They may not always give you all the tax back straightaway as the calculations usually just work it out based on the tax allowances due up to the date you claim.

this does not seem correct
why do you say this?

agrinnall

It's highly unlikely that you'll earn enough for PAYE to kick in during the period of your summer job. Your personal allowance (probably £10,600) is split into £883 for each month. If you earned nothing before July then the first 3 months allowance will have accumulated for use subsequently. If you're working July, August and September (we don't know what length of summer break you have) your allowance will total £5,300 by the end of September, so if your earning continue to be in the region of £1,100 a month then you'll have earned less than your allowance and there will be no tax due.

You will have to pay the NI that CLAPTON refers to though, and I can't see any way you'd be able to reclaim that.

dori2o

CLAPTON wrote: »

this does not seem correct
why do you say this?

The P50 provides 2 options, an unemployment repayment option, assuming that at some point in the tax year you will be returning to paid employment, this repayment can be claimed every 4 weeks by submitting the P50 and the latest P45, the refund is based on what tax is due to be repaid at the point in time in the tax year when the claim is made, a revised P45 is issued then by HMRC following the repayment providing up to date pay and tax details taking into account the repaid tax.

The 2nd option is a cessation repayment, where you advise that you do not intend to work again before the end of the tax year. In this type of repayment the whole of the tax allowance is given in the calculation and the tax repaid based on this.

If you were to work again and had used the benefit of all your tax free allowance HMRC would issue an 0T tax code to the employer in order that no further tax free allowance is provided.

HamiltonPOLE

I lost £111 in tax and £43 to NI,

I earned £1033 last month. I've earned approx £1500 this year.

My tax code is 209T.


I just used the tax checker and i got this message

''It appears that you may have paid too much tax. You may be due for a refund of £111.00

Show summary of calculation

What to do if you've used the checker and think HMRC owes you money.

You can Contact Us by telephone and we'll check your tax position for you. You'll need your reference number to hand, if you've got more than one number, use the last one.

This checker will only provide the right result if you enter all your details correctly
''

Savvy_Sue

That's an 'odd' tax code - is this your only job? Did you have another one before you started this one? If you did, did you hand over a P45 from the other job?

moneyonmymindsam

Hi,


Did you complete a new starter checklist with your employer?

The Tax code given is showing allowance as 2090 - 2099 rather than the 1060 allowance that it should be ...

Cracking the Letter is key ....and I believe T is the letter for tax under review ...so I would try to sort this sooner rather than later and not rely on your employer to just sort this ....

HamiltonPOLE

Savvy_Sue wrote: »

That's an 'odd' tax code - is this your only job? Did you have another one before you started this one? If you did, did you hand over a P45 from the other job?

My previous place of work closed down, but I'm sure I filled out a p45
This has been my job of 3 years. I just work on holidays when I'm not in school.