Students & Tax

CrazyChemist_2

I'm a first year going into second yr, but was wondering about the sitation with taxes...

Is there a threshold for when taxes should start to be paid? If so, what are they and do they include grants such as the HE Grant of £1000??

All my accounts had R85 forms registered against them and I didn't even think of questioning my tax situation but could someone advise me about this because nobody else has!!

skiddy2k

when your annual earnings exceed £4895, this is your tax code and therefore your tax threshold. if you earn between £4895 and £6985, you will pay 10% tax on your earnings and anything above this would be taxed at the standard 22%.

i dont thing this takes account of your HE grants because its done though your wages-p60 and therefore through your NI number.
but, you'll also be getting taxed on your current and savings accounts if you havent filled in the R85 form or if you go over this tax limit.

so, untill you earn over £4895 you shouldnt be getting taxed!

hope this helps, and good luck for the second year
Skiddy

Savvy_Sue

If you are working / have worked, you may have / have had tax and NI deducted, so do check your P60 and see if your gross earning exceeded that personal allowance. If they didn't, and you have paid tax, contact your local Inland Revenue office to get a Tax Return so you can claim it back. Also do that if you have earned too much and therefore should have paid tax on your savings.

CrazyChemist_2

1) Thanks both for the replies
2) what is a P60??
3) I haven't worked since I started uni but may do so this summer if I can find something apart from shelf-stacking at Tesco!! :rolleyes:
4) my total loan + grant is £5250 for next yr, but I notice that without the HE grant of £1000 I would be below the threshold of £4895. Interest from my saving accounts still pay gross rate as the R85 forms are still registered, but this interest isn't really significant (£20-ish).

skiddy2k

A P60 is a document you recieve at the end of every tax year (April) to show total earnings and total deductions you've contributed during employment. it wouldnt count for you as you say, you dont have a job and will try and get one this summer.

im not quite sure about the HE Grant of £1000 on top of your loan amounting to £5250. im not too sure whether you get some exempt if your getting a grant or not. best thing would be is to contact the inland revenue(tax man) and enquire over the phone, they tend to be very helpfull!

hope this helps.
Skiddy

stuwilky

Neither your grant or your loan count as income for tax purposes.

However the may do for benefits (such as free prescriptions)

sabelu

Where can you get the student tax form to fill out so that you dont pay tax during vacation work. Can you download it ?

stuwilky

http://www.hmrc.gov.uk/students/fagp38s.shtml

There ya go.

Savvy_Sue

skiddy2k wrote:

A P60 is a document you recieve at the end of every tax year (April) to show total earnings and total deductions you've contributed during employment.

Although to make it explicit, if you are not employed at the end of a tax year, you won't get one. Whenever you finish a job you should be given a P45, one page of which needs to be handed to your next employer but one page of which you keep. If you weren't working at the end of a tax year, your last P45 of the tax year serves the same purpose.