tax on wagers

[Biker_Dene]

im in full time education and working part time. last month i made 280 quid and i got taxed 63 quid is this right?


my gf makes £300 a month and only gets taxed £2


is there any way of claiming it back?

[landy.s11a]

methinks you have to wait till next year, when you fill in your tax forms.
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"Speed:The thing about speed is that you can't catch the people who've attained it to ask them how they got so fast. You chase them day after day, until you find yourself getting closer. Then you catch them, and realize that your question has just been answered."

[stinkwheel]

You need to fill in a form stating you are in full time education and give it to your employer then they won't deduct any tax. They should have one they can give you.

If you call your local tax office, they will tell you what to do to claim back the tax you have paid, they are usually very helpful. It isn't really worth doing until you have got the form in place to stop them deducting it in the first place though.
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“Rule one: Always stick around for one more drink. That's when things happen. That's when you find out everything you want to know.”
I did the 2010 Round Britain Rally on my 350 Bullet. 89 landmarks, 3 months, 9,500 miles.

[Simple]

you need the above mentioned form, I picked mine up yesterday for dental care and perscriptions,

I believe you are allowed to earn £100 untaxed per week?
could be wrong though
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Insta - FemFeral

[Biker_Dene]

just done an online tax rebate form and it said i may be able to claim some back so lets wait and see.

thanks for your help guys

[Simple]

after april 5/6th you cant reclaim the tax as it's a new tax year.

so probably a good job you are asking this now and not kicking yourself in a few weeks.


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Insta - FemFeral

[Kickstart]

[Simple]

Apparently they can come after you years later for tax you may have missed, but you can't reclaim ta after the nex tax year starts, it's lost.

Thats what the woman on the phone told me last week anyway.
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Insta - FemFeral

[syl]

[Kickstart]

Hi

Fairly certain she was wrong. I have certainly claimed back tax after the end of the tax year (they would not let me claim that tax relief until after the end of the tax year as some forms had gone in slightly late), and they will not even be demanding the forms to decided whether you owe them tax or they owe you tax until the end of January next year.

Think there is a limit after which you cannot claim back tax. Maybe 5~6 years. Sadie or Babyam are probably the best to answer that.

All the best

Keith
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Traxpics, track day and racing photographs - Bimota Forum - Bike performance / thrust graphs for choosing gearing

[Simple]

Perhaps she was wrong, only a lemming in an office answering the phones, probably knows nothing of what she speaks.
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Insta - FemFeral

[xlizx]

When I firts started working at my current job, I was being taxed so I had a word with our accounts lady who said that it was all in order and I should be being taxed. Bout a month later I get a nice juicy rebate, and haven't been taxed since, I'm in full-time education and I earn more than £100 a week. I got a letter from the Inland Revenue saying that I'd be taxed once I'd reached a thresh-hold of £4,800, and wouldn't be taxed til after that.
Things I learned;
a)Sometimes Accounts people talk out their arses and don't have a clue what's going on so don't bother asking them for help because it'll end up confusing you more.
b) They're conning you anyway...you're losing interest on the cash they owe you, and they are gaining it surely....if it takes you half a year to claim back £500, imagine how much cash that will have made you in a high interest account?

[veeeffarr]

Hi Simple,

She's wrong, I am currently claiming about 3 years backlog for being on a week 1 code for a long long time.

Should pay for my DAS.

Just waiting for Self Assesment forms to come through (I couldn't claim the money back as I received a trust payment last year) and then I'm going to it online with my UTR.

I'll post again when I've got the cash in my hand.

[ISLAND GIRL]

Simply contact your local inland revenue office
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Live on the Isle of Wight and ride a CBR600F

[jok]

Talk to your local inland revenue, preferably in person. They were surprisingly helpful.

I was temping quite frequently while at uni; I was on PAYE with the angency (they didn't want to not tax me in the first place for some reason), but it took only one visit to the Inland Revenue to claim it all back again.
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CG125 (stolen->recovered!) || Wars do not decide who's right, only who's left.

[Itchy]

At risk of being labelled cynical , the government ALWAYS over taxes people just to see if they can get away with it , I did payroll for several companies and the first month X code was always used so they got over taxed,

Many people don't bother to claim it back or get an increased PA so the government benefits.


It used to be that the gov would allow students to earn up to the PA and not be taxed , but trends I've seen is that tax offices tax students who earn under the PA as normal and rely on them to claim any over tax back themselves. Hence gaining interest on the monies overtaxed.


£280 PM = £3360PA

Personal allowance this tax year = £4895 which means you should pay NO tax at all , ie you can earn up to £94.50 a week and not pay any income tax but you might have to pay some NI thats MIGHT

[stinkwheel]

Err. The tax office does not tax you unless you do a self assessmant.

The tax is deducted by whoever does the wages at your place of work according to a set of rules and tables under the 'pay as you earn' system (PAYE).

If you have been overtaxed it is usually because the PAYE clerk has fucked up or doesn't understand some aspect of the system as is the case with Biker_Dene. The employer should have been aware he was a student in full time employment, given him the appropriate form to fill in and deducted zero tax rather than using an emergency tax code. (although I think filling in the form is technically your responsability ratehr than the employers).

The employer has no interest in deducting more tax than they have to.

Sometimes you will be overtaxed a bit when you start work for the first time (and therefore have no P45) because they don't know how much you have earned in the year to-date and so don't know how much of your allowance to give. You can arrange to get this back as a lump sum at the year end. If you don't, your tax code for the next year is automatically adjusted to compensate (so you pay less tax the following year).
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“Rule one: Always stick around for one more drink. That's when things happen. That's when you find out everything you want to know.”
I did the 2010 Round Britain Rally on my 350 Bullet. 89 landmarks, 3 months, 9,500 miles.

[yambabe]

Oh dear. here we go again, people who know a little bit about stuff sticking their oars in and offering advice that is almost totally wrong.

First of all, apart from setting the rates and limits the Government has very little control over how and when you pay tax, that's down to the policies of your employer. The rules are fairly flexible and are interpreted differently by different companies and software.

So lets look at the facts affecting Bikerdene and not go off into la-la land or rants about government opression shall we?

Right, the student allowance. As Itchy so rightly says, this year the personal allowance for most people is £4895 which means that is how much you can earn before you pay tax. This can be adjusted by the tax office in certain circumstances to allow you to pay more or less tax but it doesn't matter cos it doesn't apply here. There is a scheme available to employers that is designed for students who are only working during their holidays from school/college/uni whereby they can fill in a student declaration form. Once this has been accepted you pay no tax on your wage until you have earned more than the £4895. If you earn over £4895 you will then start to pay Basic Rate (currently 22%) on all the rest of your wages. Here is the BUT. If your employer's payroll software doesn't allow for the student allowance (not all of them do), or their payroll department doesn't know how to operate it, or they just don't want to use it, you are taxed normally and this is perfectly OK.

Right then, so what is "taxed normally"?

Well, as we've already determined you are allowed to earn £4895 per year before you need to start paying tax. This is divided by 12 or 52 to give a monthly or weekly figure known as the "freepay". So if you're paid monthly your freepay is about £408, meaning you should pay no tax under normal circumstances.

Here's the next BUT. If you have more than one job, you still only get one allowance so normally your second job is taxed at Basic Rate and you will see a code of BR or BR X on your payslip. A lot of companies who employ part-timers, especially in the catering industry, automatically assume that this is a second job and put you on the BR code. That's what has happened here.

Important bit: how to fix it and get your money back! You need to ask your employer for a form P46, and you need to sign the declaration that says "this is my only or main job" and give it back to your employer. They should immediately change your code to "489L X" and you should stop paying tax from now on as long as you earn less than £408 per month. You won't get a proper tax code now until after the start of the new tax year as we're only 2 weeks away. Within the next 6 weeks your employer will send you a form called a P60 which is a statement of how much you earned in the last tax year and how much tax you paid. Take this in to your nearest Inland Revenue Enquiry Centre www.hmrc.gov.uk for the address) and they will sort out your repayment for you.

Bikerdene if you're not sure about any of this, pm me.
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Sod falling in love, I wanna fall in chocolate.

[cagiva gezzer]

[Nath]

How open is the system to abuse? If I fill in a P60 claiming to be in full time education, and give to my employer at the start of the new tax year, will they likely ask for any proof of this?

I am trying to save up money to go touring Europe (and to go to the Faro rally of course), and that could really help save up some cash. I will be working till the end of May, so that would be almost two months of tax which is about £400 to me. I would of course be well under my tax allowance, so technically I wouldn't be doing anything wrong.

I work weekend shifts, but it is the equivalent of a full time mon-fri shift. My employer (an agency) might be slightly suspicious if I "suddenly" entered into full time education right at the end of the academic year How seriously do most companies take the P60? (eg How likely would they be to demand proof of being in education?)
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Hard livin', hard luck.

[yambabe]

The P60 has nothing to do with students.

It's a STUDENT DECLARATION (P38S) that you need to give to your employer, and it's up to him whether he does anything with it.

https://www.hmrc.gov.uk/manuals/pommanual/pomret/pomret07118.htm
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Sod falling in love, I wanna fall in chocolate.

[Nath]

I think I'll give that a try then. The worst they can do is say no and deduct tax through PAYE as normal.

Ta
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Hard livin', hard luck.

[stinkwheel]

When I worked for the British Army during term time, I filled in one of those forms (the "I am in full time education and am earning under £xx per year" one) and was charged no tax.

I also claimed back overpaid tax without a P60. The local tax office gave me a list of documents to send, I sent them, they sent a cheque two weeks later.

Being charged too much tax is a hell of a lot easier to sort out than not having payed enough as I found when the fuckwits at DEFRA illegally payed me gross of tax for six months through their payroll system. Took bloody ages to sort out. Included painful phone calls along the lines of "I owe you a lot of money, would somebody PLEASE tell me how much so I know what I can and can't spend.".

Just when I thought I had it sorted out, they would bung more money in my account for no apparent reason.

I also owe national insurance for that time but the NI contributions office never replied to any of my letters.

[yambabe]

You are way, way too honest Stinky!

An underdeduction of tax is, in about 95% of cases, treated as a liability of the employer not the employee. So basically if they fail to deduct tax from you they still have to pay over to the Revenue what they should have deducted from you, and they have no automatic right to recover it from you either.

Mind you, DEFRA's payment system seems to be shit as a standard thing. After the foot & mouth a couple of years ago the agency I was working for at the time was supplying clean-up teams directly to DEFRA to go in and disinfect etc. Trying to get them to pay us the right amount was a nightmare. Some months we wouldn't get paid at all, other months they would pay the same invoice more than once - on one memorable occasion they paid one of our invoices 4 seperate times in a 10-day period! Would be funnier if it wasn't our tax money they were throwing about......
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Sod falling in love, I wanna fall in chocolate.

[stinkwheel]

That's nothing. I know of a farmer who was paid twice for his cattle. (a high six figure sum). On legal advice he put it in a high interest account and left it there to see if they asked for it back. They didn't, far as I know it is now too late for them to ask for it.

Best government financial fuck-up I saw (which would probably only be of interest to Yambabe) was when my Dads company bought the premesis they had been leasing off the council. They didn't put the VAT number on their invoice so he didn't pay it (the VAT).
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“Rule one: Always stick around for one more drink. That's when things happen. That's when you find out everything you want to know.”
I did the 2010 Round Britain Rally on my 350 Bullet. 89 landmarks, 3 months, 9,500 miles.