Don’t let the taxman spoil your Christmas
November 11, 2011 by Moneysucks?
Filed under Tax
If you’re a student and about to start work for the Christmas holidays – not that you won’t already have been working hard all year at whatever course you’re doing – then remember that if you organise yourself properly you may not have to pay tax on your valuable earnings over the festive period.
Each of us has a personal allowance of £7,475 this tax year (from April 6th 2011 to April 5th 2012) and this is the amount of money that we are able to earn before starting to pay tax. So if you are only working for a few weeks over the holidays then it may be possible to have your employer pay you without deducting any tax from your pay.
To enable your employer to pay you without deducting tax then you will need to complete HMRC Form P38(S). It can be found at www.hmrc.gov.uk/forms/ps8s.pdf
If you’ve already started work and you have already had some tax deducted then you can still claim it back afterwards by completing a Form P50, and again you can download this form at www.hmrc.gov.uk/pdfs/p50.pdf
If you worked over the summer and paid tax but earned less than £6475 then you can still use this form to reclaim the tax you have already paid, and perhaps use the money to help fund your Christmas spending!
A question of tax
August 16, 2011 by Moneysucks?
Filed under Tax
Q. My daughter is 17 and is doing some part-time work for 20 hours a week. She is currently earning £4.92 per hour. Does she need to pay tax and what are the rules and her choices?
Peter Murphy.
A.Each of us has a personal allowance of £7,475 this tax year (from April 6th 2011 to April 5th 2012) and this is the amount of money that we are able to earn before starting to pay tax.
So if your daughter is only working for a few weeks over the holidays then it may be possible to have her employer pay her without deducting any tax from your pay.
To enable your daughter’s employer to pay her without deducting tax then she will need to complete HMRC Form P38(S). It can be found at www.hmrc.gov.uk/forms/ps8s.pdf
If your daughter has already started work and you have already had some tax deducted then she can still claim it back afterwards by completing a Form P50, and again it can be downloaded from www.hmrc.gov.uk/pdfs/p50.pdf
If your daughter worked over the summer and paid tax but earned less than £7475 then she can still use this form to reclaim the tax she has already paid.
