Tax on casual work

Dave2012_2

Hi,

I'm a postgrad student at Uni and I do some casual work for them- this is demonstrating practical classes, a little teaching etc. This usually involves 18-36 hours every 6 months. Every time I claim the money for it (in this case £328) I get taxed at 22%. This is my only source of income with the exception of being sponsored to do my PhD (non-taxable). Every time this happens I get my tax code changed and claim the money back, and as soon as I put in another claim my tax code changes back and I get taxed again.

Anyone know why this is and how I stop it? It took the uni seven months to process my tax repayment claim first time round - i can do without that again!

Dave

ctm_2

Dave2012 wrote:

Anyone know why this is and how I stop it? It took the uni seven months to process my tax repayment claim first time round - i can do without that again!

Firstly, why did the Uni deal with your refund?? Do it yourself direct with HMRC, don't go through payroll or anything, that just prolongs the process.

If you start working, and know that your earnings for the current tax year will not go above your personal allowance (£4895 for this tax year) then fill in a P38(S) so that no tax is deducted.

If you have already worked, and will not work again before the end of the tax year, ring up HMRC, ask for a form P50 to calim a refund and complete it and send it in with your P45 (always keep a copy of EVERYTHING for yourself incase they loose it).

roger56

Go here:

http://www.hmrc.gov.uk/individuals/tmaself-assessment.shtml

and use the self assessment online option to recover any money you are owed.
On suggestion, do consider paying class 2 NICs, this goes some way towards securing your state pension - OK it's some way off but not worth ignoring.

ctm_2

roger56 wrote:

Go here:

http://www.hmrc.gov.uk/individuals/tmaself-assessment.shtml

and use the self assessment online option to recover any money you are owed.
On suggestion, do consider paying class 2 NICs, this goes some way towards securing your state pension - OK it's some way off but not worth ignoring.

That's a rather silly suggestion.

For starters, this person is quite obviously not already under the Self Assessment system, so will not be able to file online without ringing up, explaining why he want's to be put into Self Assessment, and then laughed at and told no.

Secondly, even if he did fit the criteria for being under Self Assessment then he would have to wait until the end of the tax year in question to claim the refund, whereas with a P50 you can claim an in-year refund if you state you are not going to work again.

Thirdly, if by some miracle they were put under Self Assessment, they would have to wait until they were issued with their UTR, then go through the process of applying to use Self Assessment Online, getting all the passwords etc, which in itself can take a couple of weeks.

Fourthly, it's much quicker to scrawl a note saying 'I want my refund please here are my documents, i'm not going to work again this tax year' attach relevant documents and send in that it is to complete a tax return.

So, Dave2012, do what i said in my first post

telly-addict

roger56 wrote:

Go here:

http://www.hmrc.gov.uk/individuals/tmaself-assessment.shtml

and use the self assessment online option to recover any money you are owed.
On suggestion, do consider paying class 2 NICs, this goes some way towards securing your state pension - OK it's some way off but not worth ignoring.

Class 2 is for self employed people and Dave 2012 is an employee and should pay Class 1. Depending on his pay per week he may be paying this already. Class 3 is for voluntary NICs, but doesn not give entitlement to such a wide range of benefits, from memory.

I agree it is much easier for him to sign the paperwork saying he is a non-tax payer in the first place.