17YO paying tax

Bandy2023

Hi, our 17YO has recently started a job where she's contracted to do 20 hours per week.

She had her first pay last week and she has been taxed at exactly 20% ( gross pay £606.92, take home £485.72 )

Here's the scottish tax rates:

Personal Allowance	Up to £12,570	0%
Starter rate	£12,571 to £16,537	19%
Basic rate	£16,538 to £29,526	20%

She's highly unlikely to even earn the £12570.00, never mind the +£16538 that she's been taxed on.

Any advice as to what she should do?

She's 17 and it's her first job, she's naturally reluctant to kick up a fuss already.

Keep_pedalling

This will be because she is on the temporary emergency tax code 0T rather than 1257L, she will be refunded once HMRC have issued the correct code.

Has she completed the starter check list her employer should have given her?

https://www.gov.uk/guidance/starter-checklist-for-paye

Tree_pipe99

Check the HMRC site or app to see what tax code she has.

I had a similar situation last year and adjusted the tax code myself from the app. HMRC then paid me back the tax I'd overpaid.

Bandy2023

https://forums.moneysavingexpert.com/discussion/comment/81994079#Comment_81994079

How as it repaid out of interest? A 'cheque in the post' ?

Bandy2023

https://forums.moneysavingexpert.com/discussion/comment/81994079#Comment_81994079

Is this done via her NI number?

la531983

Given we are only at the start of May it should be an in-year credit on payslip if its done correctly. But only once the tax code is corrected so the same thing may happen again in May if payroll cutoff gets missed.

saajan_12

https://forums.moneysavingexpert.com/discussion/comment/81994085#Comment_81994085

It can be adjusted in the future months payslips by changing the tax code or can be paid via cheque - depends on the situation.

flaneurs_lobster

https://forums.moneysavingexpert.com/discussion/comment/81994089#Comment_81994089

Your daughter needs to have access to HMRC online services, details here

https://www.gov.uk/log-in-register-hmrc-online-services

Tree_pipe99

https://forums.moneysavingexpert.com/discussion/comment/81994098#Comment_81994098

That's how is was for me. My payslip showed an extra credit for the tax I'd overpaid.

Bandy2023

https://forums.moneysavingexpert.com/discussion/comment/81994116#Comment_81994116

I tried to enrol her on this service this morning, it said it couldn't as a one of the ID criteria is a credit report and she doesn't have any form of credit history yet.

Bandy2023

Her payroll department have confirmed they will use 1257L moving forward.

So it just leaves the matter of tax she's paid unnecessarily, she will undoubtedly prefer a cheque rather than adjustment of her code moving forward.