Excuse the stupidity but do part-time students pay tax at the usual rate? I'm going back to college to do a one-day a week Masters and need to work out where i'm going to stand financially.
2006-09-01 01:36:02 · 12 answers · asked by Darren C 2 in Business & Finance ➔ Taxes ➔ United Kingdom
Paying tax is nothing to do with being a student. It's to do with how much you earn. Students just tend not to earn enough to pay tax, and so normally don't.
The payroll department should work out your tax properly, but you might want to check that they know how much you'll be earning in the year, so they know how much tax to charge you.
And even if it does get messed up, you can claim overpaid tax back off the Inland Revenue afterwards (the limit might be 5 years afterwards or something, but you get plenty of time).
2006-09-01 01:45:33 · answer #1 · answered by Steve-Bob 4 · 0⤊ 0⤋
I pay 2500+ employees every month some of which are students. If you are working during the summer holidays ONLY then you can complete a P38S form which you can get from the HMRC website. Hand this to your employer. As long as your earnings won't exceed £5035 for the whole tax year (Apr 6th to Apr 5th) then your employer won't deduct any tax and you will be on tax code NT.
If you are working the whole tax year round then if you are given the standard tax code that most people get you can earn £97.00 per week or £420.00 per month before you pay any tax. Therefore the idea is that if you are a student you will only work a few hours per week so shouldn't reach the earnings levels to pay tax anyway. Another thing to consider is that if you haven't worked in April, May, June, July or August so far then you will have your £420.00 allowance still for all of these months as it is remembered throughout the tax year so if you get paid monthly in September for example you will have 6 months tax allowance which is £2520 so even if you earned more than £420 in September, because you have some other months allowances you wont pay tax. But remember to fill in a P46 form from the HMRC when you start work because otherwise they will deduct tax until they receive this. I have put the links for both forms for you. Good luck with your masters!
2006-09-02 06:20:04 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Usually, students don't pay tax excpet they earn over a certain amount in which case, they have to pay tax like everybody else at the same rates but as applicable to the particular individual scenario
2006-09-01 02:06:38 · answer #3 · answered by scallywag 4 · 0⤊ 0⤋
I worked part time as a student, cant remember the tax rate?
2006-09-01 01:38:36 · answer #4 · answered by dianafpacker 4 · 0⤊ 0⤋
Student, not student, part time, full time ---- none of these matter to your tax rate.
What matters is the amount of pay and the frequency of pay (weekly, biweekly, semimonthly, monthly, etc.)
You can go to the IRS web site (www.irs.gov), click on forms and publications, and scroll down to Circular E. The various Federal tax tables are in Circular E.
The Department of Revenue for your state will have a similar publication that you can use to estimate your state income tax. In addition to income taxes, you will be require to pay FICA/Medicare tax which is 7.65% of your taxable gross salary.
2006-09-01 02:49:44 · answer #5 · answered by #girl 4 · 0⤊ 1⤋
Even if you're a student, you still have to pay tax at the normal amounts - if you earn over £4,500 a year.
2006-09-01 01:38:15 · answer #6 · answered by solo 5 · 0⤊ 0⤋
Simple answer ...yes they do, but there are rules you ought to be aware of. A specific site is available that has cut through all the dross, explains this in simple terms...there is even an free on line help facility if you still have questions. I have used them very very impressed...got all the answers I wanted.
2006-09-01 19:32:04 · answer #7 · answered by snarleye 2 · 0⤊ 0⤋
Errm,why dont you do some research instead of relying on others to do it for you.I thought being a student was to study and use your head.Heres a little tip,why dont you phone the tax office?Use your common sense,what little you have...God help us all if these are the people we rely on for the success of our country
2006-09-01 01:41:02 · answer #8 · answered by Anonymous · 0⤊ 1⤋
yes you do. the only time student dont pay any tax is when they are working during shcool holidays and public bank holiday.
2006-09-01 01:49:07 · answer #9 · answered by Anonymous · 0⤊ 0⤋
you will only pay tax if u earn over the free pay every week/month!
do u know how much u will be earning!
i work in payroll and i can give u the free pay figs if u let me know!!!!
2006-09-01 01:41:31 · answer #10 · answered by princessnicola23 3 · 1⤊ 0⤋