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New to supply - question about pay and income tax etc?

Discussion in 'Supply teaching' started by Butterflychic, Apr 26, 2012.

  1. Hi there
    I am new to supply, and registered with 3 agencies - no work so far
    How does tax and such work? Am I self employed? Bit confused! :s

    Thanks :)
  2. PaulDG

    PaulDG Occasional commenter

    No, you're not self-employed.
    You're either emplolyed by the agency or, and this is becomming more common, you're employed by an "umbrella company".
    If your agency wants you to use an umbrella, they might only tell you that after you've done your first job for them. These organisations are paid gross by your agency, and deduct a "processing fee", tax, NI and employer's NI before paying you.
    The agency will have a pet umbrella company. I don't know but I expect they get a kick-back from using one.
  3. jubilee

    jubilee Star commenter

    Have you filled out P46 forms with each employer?
    Did you register with agencies before 5th April 2012 and did you have a P45 from any previous employer in the last tax year?
    If you did have a P45, the employer you passed it onto would be the one thta operates your taxcode (the amount you can earn tax free each financial year).
    The other agencies would tax all your earnings on BR (Basic Rate) otherwise known as Emergency Tax (20%). That is correct taxation if, by the end of the tax year in 2013, you have earned your full tax-free allowance with the main employer. The tax-free allowance is around £7500 per year with a tax code of 745 or similar.
    If you don't earn the tax-free aount with the main employer, you will be due a tax rebate of some or all of the tax deducted by the other employers. You claim it after 6th April 13, once you have had your annual tax statement (P60) from each employer. Those may not arrive until May or June.
    You can nominate which employer is to administer your tax code. It just needs a phone call to the Inland revenue to set it up.
    Personally, I'd wait until work starts coming in and choose the agency that gives you the most work. Better still if they are the agency that pays you the highest daily rate.
    You must keep a file of all your pay details. I hold onto payslips/P60s etc for at least 6 years.
    Some agencies can be 'slow' to pay up or to pay the right amount. I keep meticulous diaries of work bookings and enter my expected gross pay on the designated pay date. I can then establish immediately if there is a discrepancy.
  4. Thank you so much for the detailed replies :)

    I've filled out the p46 yep. Ok brill, thanks for the advice.. will wait for the work to come in first (I'm probably a step ahead of myself anyway!) and take it from there.

    Thanks again.
  5. Thanks Jubilee. I had signed on for a while, but they were being very insistent I apply to shop work etc.
    But i'll sign on again, as can't rely on supply work!
  6. jubilee

    jubilee Star commenter

    If you have not worked in a particular job for at least 6 months, they are able to require you to look for nay work that you are capable of doing, for minimum wage if necessary.
    Don't challenge that requirement as it doesn't stop you putting most of your jobsearch effort into looking for thye type of work that you want.
    Any Retail or other vacancy that you follow up will not necessarily result in an interview or selection as it will be clear from your application that you are overqualified and are likely to leave as soon as you can secure teaching work.
    As long as you show enough jobsearch activity on your fortnightly report at the Jobcentre, they won't hassle you. Contacting your agencies several times per week will count as jobsearch as will sending your CV to selected schools.
  7. jubilee

    jubilee Star commenter

    Once you have been doing teaching work for 6 months or so (even random supply) and then sign on again, you will be able to have a Permitted Period of only being required to look for your usual work at your usual pay. The permitted Period lasts for 13 weeks, after which you will be required to be 'more realistic' and be prepared to apply for other work as well.

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