Should I be getting taxed?

[danneh]

Started working at o2 part time, handed my p45 in and for the first month I wasnt taxed (only earnt £400), but for the second I was taxed like £20 (earnt around 600), and now ive just been taxed £70! Its ridiculous. Im a student at uni, and im getting taxed? I thought students dont get taxed (hence tax dodgers) but im getting raped (some of u may think £70 isnt alot but to me its a shitload). Can any1 confirm this? I pay £20 NI and the £50 went to PAYE (pay as you earn)

dan

[kerry_vts]

Welcome to the real world. As soon as you start earning you start paying too.

Doesn't matter if your studying or not.

You don't get taxed on the first £5225 a year, after which you get taxed at 10% on the next £2230 and then get taxed at 22% for earnings between £2231 - £34600.

Hence why everyone hates the tax man!

[Ge0_Ge]

ask ur new job for a p46.

[kylie]

stop whinging. wait til you get a proper job. then you'll know what getting taxed really feels like.


lol only kidding

[sbatstone]

im still at secondary school and i am paying a shit load on tax and national insurance!
i hate tax

[kerry_vts]

ask ur new job for a p46.

you only need a p46 if you don't have a p45.

P45 is far more accurate and you'll be better off tax wise rather that being put on the emergency tax code coz then you would get everything taxed at 22% (missing out the section of 10% tax)

[Barry123]

Started working at o2 part time, handed my p45 in and for the first month I wasnt taxed (only earnt £400), but for the second I was taxed like £20 (earnt around 600), and now ive just been taxed £70! Its ridiculous. Im a student at uni, and im getting taxed? I thought students dont get taxed (hence tax dodgers) but im getting raped (some of u may think £70 isnt alot but to me its a shitload). Can any1 confirm this? I pay £20 NI and the £50 went to PAYE (pay as you earn)

dan

sorry but your avatar is flucking comedy!!!hahah

[williamsvts]

you call getting taxed £70 rediculous?
try getting taxed £900 a month, sometimes more.

[danneh]

there is no way ive earnt over £5k this year, im only on £8k a year and i started the job in feb! Something must be wrong?

[bbewekim]

from what ive read... you get taxed 10% now until you earn 2k sumet... then 20% after like 5grand.

its crap past 2 weeks have been the first 2 of the financial year... i may aswell be doing about 30 hours cus im taking home that amount! averaging about 10hours covers tax for the week :@ rant rant.

it used to be no tax until like 4grand or w/e depending on your sircumstances. :s

[kylie]

it goes on how much you earn. its not the same for every one i dont think.

there are 2 certainties in life:
1. death
2. taxes

[kerry_vts]

the inland revene look at what they think you will earn or base it on what you earned the previous year (if you had income then).

The £5225 is tax free, you can earn up to this without being taxed. From £5226 to £7455 you get taxed at 10%, from £7456 to £34600 you get taxed at 20%, after which its 40%.

It completely sucks that people work so hard and the tax man takes most of your wages! But thats life!

[danneh]

Yes, but i finished my previous job in may, so even last year I didnt earn near anything to 5k.. I worked there for 2.5years, and earnt 300 a month, so 3600 a year so they musnt be making huge assumptions for my new job? do you mean if my annual salary is over 5226, i will get taxed 10%? or do u mean by the time ive earnt 5226 i will start getting taxed?

edit: you said the first 5.2k you earn, therefore its paying as you earn.. so therefore im getting taxed when I shouldnt?

[KamRacing]

i've never really looked too hard at the tax aspect of any paycheck as usually the amount makes you want to throw up, but I'd imagine they work it out like this...

5225 is tax free so thats £435 p/m
Rather than look at the bigger picture, monthly gets them to take more money in the short term
If you earned £600 in one month they probably tax you the maximum they can and then at year end double check that they didnt take too much (good for them as earns interest) and will rebate you if necessary

[williamsvts]

annual salary.

[kerry_vts]

Yes, but i finished my previous job in may, so even last year I didnt earn near anything to 5k.. I worked there for 2.5years, and earnt 300 a month, so 3600 a year so they musnt be making huge assumptions for my new job? do you mean if my annual salary is over 5226, i will get taxed 10%? or do u mean by the time ive earnt 5226 i will start getting taxed?

not sure to be honest!

The payroll systems I've always used automatically calculate it so there was no way of it going wrong.

You can always ask your employer fro a breakdown of how they calculate you tax.

Also you should check your tax code as this always effects your tax free amount. Most people are on 522L unless they claim any kind of benefits but the Inland Revenue will be able to explain how your tax code is made up.

[williamsvts]

how can you say waht most people are on? mine has changed every year.

[danneh]

Ill check my payslip again whilst im in work tmorrow and get my tax code - ive rang my hr department but they said ring inland revenue :S

[danneh]

i've never really looked too hard at the tax aspect of any paycheck as usually the amount makes you want to throw up, but I'd imagine they work it out like this...

5225 is tax free so thats £435 p/m
Rather than look at the bigger picture, monthly gets them to take more money in the short term
If you earned £600 in one month they probably tax you the maximum they can and then at year end double check that they didnt take too much (good for them as earns interest) and will rebate you if necessary

that sounds about right..

[kerry_vts]

how can you say waht most people are on? mine has changed every year.

Thats because everyones changes every year.

You mulitply the numbers in your tax code by 10 to get your tax free allowance.

I used to do payroll for 250 people and majority were on that code as that is the basic code. Its only different from that if you get benefits or other income!

[danneh]

Would you know the inland revenue number to contact them about a tax query? Ive looked but theres just too many departments etc..

[kerry_vts]

Would you know the inland revenue number to contact them about a tax query? Ive looked but theres just too many departments etc..


The Manchester tax office is 0845 302 1477

Try that!

[danneh]

i've never really looked too hard at the tax aspect of any paycheck as usually the amount makes you want to throw up, but I'd imagine they work it out like this...

5225 is tax free so thats £435 p/m
Rather than look at the bigger picture, monthly gets them to take more money in the short term
If you earned £600 in one month they probably tax you the maximum they can and then at year end double check that they didnt take too much (good for them as earns interest) and will rebate you if necessary

thats how it works - just rang up the tax office and they do it on a monthly basis.

[Tabzman]

Everyone gets hit with tax mate....i did some overtime and got £2256 one month and the taxman took over £500 of that way!!!!Nearly cried...its true!