Are young workers meant to be taxed (in UK)?
Im 17 so Im classed as a young worker. I got my first payslip recently and I earned £672.75 BUT I was taxed £164.04 and I didnt think I would be taxed as I am in full-time education and under 18. Have I just got it wrong? Or can I claim back this tax somehow? I did try googling this but couldnt find an answer :(
Thanks for your help!
Asked by Alice - 1 year ago
Answer: Best answer
If you are a student who works, then you will unfortunately be eligible to pay Income Tax and National Insurance Contributions (NICs) in exactly the same way as the rest of the working population. However, you may be able to claim some of the tax back, as there is a minimum threshold for both Income tax and National Insurance contributions. If you earn over £97 a week you will have to pay NI. For income tax if you earn over £6.475 in 2010-11 tax year then you start paying income tax. If you work only during holiday time you can complete a P38 form from the Inland Revenue and you won’t have to pay tax on the PAYE system. For tax already taken you will have to complete a tax return at the end of the year April 2011 to reclaim any tax.
Disclaimer:
The answers above are for guidance only and should not be acted upon without you receiving independent financial advice relevant to your circumstances. To find an IFA please go to http://www.unbiased.co.uk
Sources:
Adrian Lowcock, Senior Investment Adviser, Bestinvest Brokers (Ltd)
Adrian joined Bestinvest in 2003 as a Senior Investment Adviser and has previously headed up a team of Investment Advisers. He is currently Editor of our client magazine, The Bestinvestor and is our key media spokesperson. Adrian has 12 years experience advising clients and is a member of the Securities and Investment Institute. Bestinvest provides independent investment advice, investment management and financial planning services to individuals. With in-depth analysis, precise tracking and experienced advisers, we work to help you create, protect and enhance your wealth.