HRMC- I am paying too much tax but they won't do anything.

[PainTrain]

If anyone can shed some light on this matter it would be appreciated- I am currently a student, as such I don't work more than 4 months a year, however I just got my payslip and HMRC are starting to tax me. I have earnt about 3k this tax year, and I thought the threshold was 7.5k.

They said that my current tax code can not be changed as I had to apply for a "student" tax code at the start of the year, and as that has been and gone I have to stick with a standard tax code.

The problem is that I will go 2 or 3 months without working and then get a months solid work, this means that my current tax code is fairly unfair as if I earn over 140 pounds a month I pay tax, and it can't be worked out a as a yearly average.

Any ideas? I can't really afford to be paying tax yet as my student loan isn't enough to live off and 20 pounds a week (fwiw) really effects me financially.

Edited by PainTrain on Wednesday 17th August 17:07

[STW2010]

Claim it all back at the end of the financial year (April)

[KelWedge]

In simple terms yes your tax code will be about 7500 for the tax year, starting in April 2011 But this is allowed weekly or monthly depending which you are paid so now is end august say week 29 into the tax year so 7500 devided 52 X 29 = the amount which if you have earnt more than so far you pay tax on. The good news is if you say now dont work for a few weeks when you next work you may well find you get some tax back. The thing to remember if you are not working at the tax year you may well have paid to much tax and you need to write to the tax office to get it back. Unless you want to wait until they sort it sometime never!

[mph1977]

http://www.hmrc.gov.uk/students/work_hols_while_st...

http://www.hmrc.gov.uk/forms/p38s.pdf


if you and your job doesn't meet all the P38(s) criteria then you pay as you earn and reclaim any overpayment as the end of the tax year

Edited by mph1977 on Wednesday 17th August 22:55

[Eric Mc]

Did your employer ask you to complete a P46 (S)? This wouild have allowed you to make use of your correct tax coding in your current employment.

As has been mentioned, you can wait until the current tax year ended - 5 April 2012 - and then make a retrospective claim.

The current tax free allowance is £7,475.

From the HMRC website -

Students: Get any overpaid tax back


If you have overpaid tax on your earnings or interest from your savings you can claim it back, if your taxable income is covered by your tax allowances. You may have paid too much tax if you don't earn much or if your only, or main, source of income is savings interest. You can check whether we might owe you a tax refund by using the tax checker.

Pay/wages
If you think you have paid too much tax you can ask your Tax Office for a repayment claim form P50 (PDF 75K). Or, you can ask your Tax Office to review your tax position at the end of the tax year to see if you might be due a repayment.

You can find out how to contact your Tax Office by going to the Contact Us pages.

The time limit for making a repayment claim is five years and ten months from the end of the tax year. For example, you must make a claim for repayment of tax paid in the tax year that ended in April 2004 by 31 January 2010.

[johnnyreggae]

PainTrain said:

I have to stick with a standard tax code. The problem is that I will go 2 or 3 months without working and then get a months solid work,

Surely in this scenario unless you are on an emergency code which it reads like you are not effectively after the next break you will get tax rebated as your total earnings for the year would then not be high enough

[Eric Mc]

johnnyreggae said:

PainTrain said:

I have to stick with a standard tax code. The problem is that I will go 2 or 3 months without working and then get a months solid work,

Surely in this scenario unless you are on an emergency code which it reads like you are not effectively after the next break you will get tax rebated as your total earnings for the year would then not be high enough

If the individual leaves employment (which is normal for students), the tax refund will not automatically happen unless he contacts HMRC himself and explains his situation. And, as mentioned above, he may need to wait until the current tax year has ended before making the claim.

[PainTrain]

Thanks for the reply's, the problem is I never technically leave employment as it is through an agency. I think I may try leaving then rejoining, and trying to claim my tax in the intermission.

[mph1977]

PainTrain said:

Thanks for the reply's, the problem is I never technically leave employment as it is through an agency. I think I may try leaving then rejoining, and trying to claim my tax in the intermission.

they won't let you reclaim until the end of the tax year

you aren't being paid on a 'week one' basis are you ? ( i.e. you get 1/52 of your allowances based on your tax code rather than based on what you have earnt to date )

otherwise this is stepping very close to the Paul Calf Line where you shall be labelled as a 'Blaaadddyy Stewdent '

Edited by mph1977 on Thursday 18th August 19:14

[PainTrain]

It is now on a week to week basis, rather than allowing me to earn up to 7475 pounds, then taxing me.

[northandy]

Sounds like you have a week 1 tax code, which uses the tax free amount but only on the pay in the period, it doesnt care about the year to date.

Did you have another job at some point in the same tax year?