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tax question
- Thread starter bigc
- Start date
watsongooal
New member
bigc said:
I didnt when I was there. But that was a while ago (2000)
Barrel of Fun
Abort, retry, fail
Yes, you have to pay tax on anything over £5,035 a year.
Cadiz Seagull
Grey bearded old man
Everybody has to pay income tax, even children, if their income is over the personal allowance mentioned by BoF
Commander said:
If I gave any of my children enough pocket money that they would have to pay TAX, I would want to be put into a MENTAL Home.
- Thread starter
- #7
well it certainly isn't likely to meet that!heh.
I just wondered how they work out the exemption. cos I've started working and I'm being taxed(it doesnt bother me if I should be) but if I'm not supposed to be, then I want to find out a way to correct it.
I hadn't filled out a P46 till Sunday so that might correct it
I just wondered how they work out the exemption. cos I've started working and I'm being taxed(it doesnt bother me if I should be) but if I'm not supposed to be, then I want to find out a way to correct it.
I hadn't filled out a P46 till Sunday so that might correct it
Buzzer
Languidly Clinical
- Oct 1, 2006
- 26,121
Yet more confirmation - yes, you do need to pay tax on anything above your personal allowance (usually £5035), if it's savings income and you haven't filled out a tax exemption form with your bank/building society then you've already been deducted at source and there's nothing more to pay (unless you're a higher rate tax payer earning about £40k plus a year). If it's employed income then your employer is responsible for deducting tax and NI. If it's self-employed income you will need to fill in a tax return.
You do not need to fill in a tax return if you are not a higher rate tax payer AND all your income is savings/employed.
El Presidente will (hopefully) back me up on this.
Disclaimer to cover my back with my professional body - this is not tax or investment advice given by me. If you want specific tax advice you are best advised to go to a chartered tax adviser/accountant with proper indemnity insurance.
You do not need to fill in a tax return if you are not a higher rate tax payer AND all your income is savings/employed.
El Presidente will (hopefully) back me up on this.
Disclaimer to cover my back with my professional body - this is not tax or investment advice given by me. If you want specific tax advice you are best advised to go to a chartered tax adviser/accountant with proper indemnity insurance.
Bluejuice
Lazy as a rug on Valium
You pay income tax on PAYE earnings over £5,035 in a year.
If you're earning more than that with an employer as a student, what are you doing at uni?
If you're earning more than that with an employer as a student, what are you doing at uni?
Barrel of Fun
Abort, retry, fail
I was given the wrong tax code and they IR took £1,000 too much of me. It was a real biatch to get back and took over 3 months or so... Good way of saving, but I needed it at the time really to pay off some of my credit card bill. 
Gazwag
5 millionth post poster
Buzzer said:
Unless that "pocket money" is being claimed as a tax deduction in a parents business.
Gazwag
5 millionth post poster
bigc said:
what is the tax code shown on the payslip - if its 503L then its correct, if its 503L week/month 1 or something else then it may be wrong. Ask for a P46, complete it and return it they will send it to the tax office and issue the correct code. I assume its your only job
Buzzer
Languidly Clinical
- Oct 1, 2006
- 26,121
Gazwag said:
no not true. It's then not a legitimate business expense and gets added back to profits in the business where it is taxed at where it should be. The other side is then treated as drawings by prorietor or by director. Also, children's investment income if over £250(?) or is it £100 when derived from parent's money is taxed on the parent also. That is interest/dividends earned.
Last edited:
Buzzer
Languidly Clinical
- Oct 1, 2006
- 26,121
Gazwag said:
Spot on - by the sounds of it you're on emergency tax or not even getting any personal allowances.
By the way - when you receive your P46 photocopy and give to your employer. A lot of employers either get electronic notification or no notification so best to cover your bases.
Gazwag
5 millionth post poster
Buzzer said:
I was implying that the child was in effect employed by the business and could justifiabled be paid thereby earning the money
Buzzer
Languidly Clinical
- Oct 1, 2006
- 26,121
bigc said:
okey dokey. That means you are getting taxed at 22% on ALL your income. When you filled in your P46 did you tick that you had other employment income?
Do you have other employment income?
If not to both questions then get in touch with your payroll or the tax office direct, inform them of this and you will then get a revised coding notice which will mean that you will get a pay packet with all the overdeducted tax back and then on in should be taxed correctly.
PM me, if in doubt.