Does anyone know anything about tax??

[CrazyLea]

Heya.. I know nothing about tax but..

This month I paid 60 quid tax... but I am in full time education.. should I be paying tax, because I thought no? I am 20 by the way, if that helps.

At my last job I was on emergency tax... this time I'm not, I'm on a different tax code..

It was quite weird also, because I didn't pay any NI? Normally I do..

[Abbie]

My mum works in a tax office so I'll ask her

I know that some people who I work with do you earn over a certain amount a week, so that might come into it

[Trinity]

When you are in full time education your do not pay tax on your stipend or studentship (grant) payments, but any earned income is taxable.

If you have only one job then you should complete a P46 form and pass it to your employer. If you have more than one employer then it gets more complicated. Also, it is essential that when you change jobs you get a P45 from your ex employer and pass it to your new employer. If you have had a job in this tax year (5th April 2008 - to date) then make sure you get your P45, retrospectively if necessary.

Basically what these forms do is let the people calculating your tax know that this is the entire amount that you earn - and everything that you have earned in this tax year. It is important that they know this because if they do not know officially (via the P45/46) then they will tax you income as though it is 100% taxable, rather than apportioning you tax free allowance.

If it is a second job, then they may assume that your tax allowance is used in your first job and you may need to claim back overpaid tax at the end of the year (April 2009).

[Abigail]

You only pay tax if you earn over a certain amount each tax year. I think it's about £4k.

[Trinity]

The personal tax allowance (i.e. the amount of money you are allowed to earn tax free) is £6035 in 2008/09 and rises to £6475 in April 09.

Because an employer will not know if you have another source of taxable income it is essential that the P45/P46 forms are used when you start working for a new employer.

If you do not hand in either a P45 or a P46 your employer cannot know what other income you have paid tax on - and more to the point how much of your tax free allowance has been used. They are then obliged by the tax office to tax ALL your income at basic rate tax.

[di marco]

you might have to fill out a tax redemption (is that the word im looking for? my brain really isnt working today!) form and then if you shouldnt have paid it they will give it back