Tax question

[8]

I’m on an industrial placement as part of my final year at university. My total pay for the duration of the placement is over £5,225, but my placement was split by the start of the new tax year. I didn’t earn anything last tax year apart from the wages from the early part of my placement so I didn’t pay tax on it as it was below £5,225. Now the company I’m working for has started taking PAYE tax based on my per annum salary. However, I’m only here for a few more weeks and I won’t go over the £5,225 for this year.

It is likely I will have another job before the end of the year but am I entitled to the tax back that I have paid so far?

I spoke to the company payroll staff and they say I should fill in a p38s form but it doesn’t seem to apply to me as I won’t be a student after April 5th next year and it is not a holiday job.

My thinking on the subject is that I should get the tax back without having to fill in any forms as I’m on a fixed length contract. Can anyone confirm this before I make a fool of myself by trying to tell the payroll staff they are wrong?

[smartie]

The payroll staff can't choose repay it to you, they just operate the payroll based on your tax code.



If you complete a P38S you can earn up to your allowance before paying any tax, anything over will be at BR. As you say, you're not doing a holiday placement so this isn't entirely appropiate.



If you leave this placement and then get another job later in the year, any tax paid will be caluclated into your new job (via your P45) and repaid to you through employment.



If you do not get another job in 2007/08 then you should be repaid any tax overpaid, though you will generally have to chase it.

[8]

smartie said:

The payroll staff can't choose repay it to you, they just operate the payroll based on your tax code.

If you complete a P38S you can earn up to your allowance before paying any tax, anything over will be at BR. As you say, you're not doing a holiday placement so this isn't entirely appropiate.

If you leave this placement and then get another job later in the year, any tax paid will be caluclated into your new job (via your P45) and repaid to you through employment.

If you do not get another job in 2007/08 then you should be repaid any tax overpaid, though you will generally have to chase it.

Thanks.

So does this mean that I can't get the tax back until next year (presuming I don't work until then)? The extra cash would come in handy for the travelling I'm planning.

[pugwash4x4]

if you know that you won't be working then write to the tax office dealing with your affairs and explain the situation. They will usually send you a cheque- you won;t get your NICs back though.