Is work ripping me off?

Lighters

Sorry but i could not find the correct thread to post and this looks the most suitable.
The current job i am working is temporary and i;m 18 and its my first job so i;m not exactly knowledgable about how everything works so please be informative

I work weekends sat & sun
sat = 5.80 per hour
sun = 8.99 per hour

I dont know if the above is regarding tax or exactly how tax works, i was under the impression i dont yet get taxed because its my first job and i have not earned anywhere near 3k...

PROBLEM: Well its been a week and i have been paid.. --- £83.93! ---
Excuse me but how does that work out?

I worked a total of at LEAST 16 hours
sat = 8 hours with a 20 minute break i'm not sure if i get paid during that 20min (5.80 x 8 = £46.4)
sun = 8 hourd with a 20min break i'm not sure if i get paid during that 20min break
(8.99 x 8 = £71.92)

So what i have currently been paid from 16 hours work is £83.93 thats £83.93 / 16 = £5.24 per hour

So what has happened here? the thing is i havent recieved an invoice and dont know when i will as its temporary work and its my first job,
I was quoted this wage over the telephone as thats how i arranged the job because i was due to work nightshifts but they were overbooked so i had to COMPLETELY change my shift but as they already had my details i didnt enquire anymore about the job and started immediately...

What do i do / how?
ALL advice appreciated!

reehsetin

pretty sure you have to fill in some form otherwise tax is automatically paid, ask your employer or hmrc about it

System

From your figures it looks as though they probably have you on a BR code (taxing you at 22%). You need to complete a P46 form and either send it to HMRC yourself or get your employer to do it.

You get no special treatment being 18, temporary or part-time with regard to tax but you are allowed to £5225 tax free in this current tax year just like the rest of the under 65's. That equates to approximately £100.48 per week tax free.

If you complete the P46 and get it to HMRC they will issue a correct tax code to your employer who will then use it to calculate the correct amount of tax you should be paying. If you have overpaid tax then you should get a refund in your pay once your employer applies the tax code.

soolin

As well as basic rate, often referred to as 'emergency' tax outlined above you've got national Insurance as well and whilst that is a lower amount it cans till mke a difference to your take home pay:

see here for more details:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015904

The lower linit for National Insurance is £90 a week, so you probably just scrape in and it will be deducted automatically.

I'm not quite sure though why you think being a student makes any difference to tax and NI liability..I find that statement a little of a worry

Anyway, your employer is obliged to supply you with a payslip showing the breakdown of your payment so go and ask for one. AS you seem a little unsure about how things work, can I please just tell you to make sure you keep your payslips safely as that is the proof you need of tax and NI being paid on your behalf..and you'll need that proof for any tax refund claimed later. At the end of the tax year you will also get a P60 that gives the total for the whole year, and that is VERY important and you should look to keep that for 6 years.

Meanwhile, talk to your payroll department (or boss if it is a one man band) and ask wht forms to fill out to get proper tax code. You can also try talking to your tax office.

Bossyboots

soolin wrote: »

I'm not quite sure though why you think being a student makes any difference to tax and NI liability..I find that statement a little of a worry

Students working SOLELY in holiday periods are entitled to receive their pay gross regardless of the amount, unless and until their pay goes over their personal allowance for the year. Then of course they would take a big hit in any further pay they received but I imagine on the whole students only working the holiday periods won't be hitting their personal allowance.

They must complete a form P38(S) to get their pay in this way.

They are still liable for National Insurance payments I believe though.

chrisbur

Lighters wrote: »

Sorry but i could not find the correct thread to post and this looks the most suitable.

The current job i am working is temporary and i;m 18 and its my first job so i;m not exactly knowledgable about how everything works so please be informative

I work weekends sat & sun
sat = 5.80 per hour
sun = 8.99 per hour

I dont know if the above is regarding tax or exactly how tax works, i was under the impression i dont yet get taxed because its my first job and i have not earned anywhere near 3k...

PROBLEM: Well its been a week and i have been paid.. --- £83.93! ---
Excuse me but how does that work out?

I worked a total of at LEAST 16 hours
sat = 8 hours with a 20 minute break i'm not sure if i get paid during that 20min (5.80 x 8 = £46.4)
sun = 8 hourd with a 20min break i'm not sure if i get paid during that 20min break
(8.99 x 8 = £71.92)

So what i have currently been paid from 16 hours work is £83.93 thats £83.93 / 16 = £5.24 per hour

So what has happened here? the thing is i havent recieved an invoice and dont know when i will as its temporary work and its my first job,
I was quoted this wage over the telephone as thats how i arranged the job because i was due to work nightshifts but they were overbooked so i had to COMPLETELY change my shift but as they already had my details i didnt enquire anymore about the job and started immediately...

What do i do / how?
ALL advice appreciated!

You should get a payslip which will tell you the tax code and basis being used, as well as gross (and how it is made up ie hours and rates )tax NI any other deductions and your net pay. Ask your employer for this and advise details on this board and then detailed advice can be given.

Have you recieved any taxable benefits between last 6 April and now?

If yes do you have a P45 if so give this to your employer. If you do not have a P45 can you get one? If you have no P45 ask for a P46 and fill it in.

If no ask for a P46 and fill it in.

The P46 should be returned to your employer.
If you can tick box A they will be able to put you onto 522L cumulative tax code without waiting for the tax office to advise a code.
If you tick box B then you will be put on emergency tax 522L week 1/ month 1 basis. Emergency tax will give you a weekly tax free allowance of about £100. On the earnings you have indicted you will not pay a lot. The tax office will eventually advise a tax code for you and any overpayment will be refunded.

If you do not fill in a P46 you will be due tax at Basic Rate. 22% of all you earn.

You will also be liable to National Insurance on weekly earnings in excess of £100

CLAPTON

It looks to me like this

a. What you have actually been paid is

7.6 hours at £5.80 = 44.08 (i.e. 7.6 hrs is 7 hrs 40 minutes) and
7.6 hours at £8.99 = 68.32

total gross = £112.40

less tax at 22% = £24.73
and NI at 11% of the amount over 100 per week = 11% of 12.40 = £1.36

so take home pay = 112.40 - 24.73 - 1.36 = £86.31

b. What you should have paid assuming you have earned no other income this year since 6th april 2007

tax should be zero
NI is correct at £1.36

As people have said this is because you are probably on an 'emergency' tax code of 'BR' which means everything is taxed at 22% whereas at the moment you should pay no tax at all.

carolinosourus

I've just finished being a student and am now working full-time. However I worked over all my summer holidays and earnt just under my personal allowance each summer so never had to pay tax. You need to make sure that you have filled out a P45 (I think from what I can remember) so you don't get charged tax, but no matter how much you are earning and whether you're a student or not you will always get charged National Insurance, there's no way to escape from that, and TBH, if you're working then I feel that you should be contributing something back (even if it's mandatory!).

However, I found work through a temping agency who sorted everything out for me, gave me all the forms that I needed to fill out and then sent me a payslip each week so I knew exactly what was going on. It might be worth having a look for employment agencies near you? And then over the holidays if you come home then you can call them a week or two before you finish for the hols and more often than not they'll have found you some temp work with minimal effort on your part!

Bossyboots

No, a P45 is what an employer gives you at the end of your employment. You then hand that to any new employer who will then have all the details they need to carry on your tax code as before.

The form for students working only in holiday periods is P38(S) as I have already mentioned.

carolinosourus

I'm sorry I was only attempting to help having been a working student in the past year, I did also say 'I think from what I can remember'. I just don't ever remember filling out a P38

Lighters

Thanks alot for the whole advice!
Just got my payslip today and as you said i am on BR tax code
The pay the person quoted me on the phone was correct at the hourly wages

£108.64 - £23.76 for tax and - £0.95 for National Insurance = £83.93

One thing worries me - they took reed rewards £-2.29 out of my wage? what is this and can i get it returned? i cant remember agreeing to any reward scheme?

Thx everyone - i will speak to my manager at work and ask him for a p46 form correct? or is it a p38 (i'm a student) and is it correct to ask my manager or is there someone else i can contact because i work for royal mail but i;m employed by reed

Yet again you guys are SO HELPFUL! :T