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Tax

Discussion in 'Supply teaching' started by slippeddisc, Jan 20, 2012.

  1. slippeddisc

    slippeddisc New commenter

    I got my first supply pay slip this week. I haven't been taxed and it says I need to declare my own tax. Is this right? I was completely unaware of this and it stresses me out as I've heard that can be a nightmare process.
     
  2. slippeddisc

    slippeddisc New commenter

    I got my first supply pay slip this week. I haven't been taxed and it says I need to declare my own tax. Is this right? I was completely unaware of this and it stresses me out as I've heard that can be a nightmare process.
     
  3. Anonymous

    Anonymous New commenter

    It depends on what you signed up for - but you are either paid by the agency or by an umbrella firm. You should not have signed up for "self employment" - that is where you pay your own tax and NI. The agency may not charge tax if you have not earnt anything this year as you get a tax free allowance.
    Speak to your agency and confirm how they are paying you. Did you sign a P46 - where they ask you if this is your only job or if you have another job?
    You get a tax free allowance of about £6500 this year up to April 06. If you earn above that, that's when you start paying tax. If you earn less than that this financial year and pay tax, then you can claim the tax back easily.

     
  4. Either way filling in a tax return is not difficult as long as you keep meticulous records of what you earn and put some money away to pay the bill.
     
  5. slippeddisc

    slippeddisc New commenter

    I will contact the agency on Monday and check things. I am paid by the agency not an umbrella firm (I think!). I got charged NI (14p!) but not tax. I signed a P46.

    I think I will have gone over the tax free allowance as I was employed full time till xmas. Only started supply a couple of weeks ago. I don't remember signing up to self employment.
    Any ideas?


     
  6. Anonymous

    Anonymous New commenter

    Complete a P46. Then they will take tax off. At the end of the tax year collect your P60s. Then see what you've earnt. Take off your tax free allowance. That's the amount you pay tax on. Work out your tax!!
    Sorry if that sounds patronising!!
     
  7. slippeddisc

    slippeddisc New commenter

    I'm so sorry Robyn but I am clueless about tax. I still don't understand what you mean! I already completed a p46 (when I first signed up with the agency). Does that mean that they should have taxed?

     
  8. jubilee

    jubilee Star commenter

    If you only paid 14p in NI I assume that you only had pay for one day's work, with gross pay of around £100.
    That is not enough earnings in a week to be paying tax.
    You need to be earning over £625 per calendar month or over £144 per week for the employer operating your tax code to be deducting income tax.
    You have a tax-free allowance of £7475 between 6th April 2011 and 5th April 2012.
    If you haven't used up the approx £6k of that allowance, allocated to the period to mid-Jan 2012, you pay no tax until your earnings catch up with the tax-free allowance.
    I assume that you have passed on a P45 from your previous employment so that your employer knows your tax code and how much you have earned to date.
     
  9. modgepodge

    modgepodge Occasional commenter

    You won't have used your tax free allowance up working from April 11-Dec 11. Your old employer will have divided your tax free allowance by 12, then taxed you on the remainder each month that you worked for them. This all works beautifully if you stay with 1 employer for a year and do no additional work.
    The tax free allowance for 2011-12 is £7475. Each month april-Dec you will have used around £623 of this (7475 divided by 12). Therefore you have around £1870 left tax free. If this is your first supply since Dec, and you earned than £623 in the month (or around £143 in a week), you will probably not have been taxed.
    I think I've got that right.......
    Also, unless you get A LOT of supply (or other work) between now and April 6th, you will probably have overpaid tax this year with your other employer, so make sure you keep your p45 and in April you can probably claim a refund. Incidentally I've never done a tax return when I think I'm due a refund, just called them up and explained, and they've sorted it. My dad just writes to them each year with the figures and they refund him.

    To sum up, you probably have been taxed correctly on your supply pay.
     
  10. slippeddisc

    slippeddisc New commenter

    Thanks everyone. I was lucky enough to get a full time job earlier this week so I guess I just give my P45 to them and my tax will go back to normal.
    My tax is all over the place as I was already due a tax rebate before xmas because I was on the wrong code. Then I started supply and income support so I am completely lost and I don't know what's going on!
     
  11. jubilee

    jubilee Star commenter

    Submit any P45s to your new employer.
    If coming off Income Support, you should also get a P45 for handing over as JSA etc is potentially taxable. No-one pays tax on it if it the only income they have in a tax year but whenh added to earnings, there could be a liability to tax on some of it.
    As this will have been a tax yeare with various sources of income, I advice that after the end of the tax year, when you are in receipt of the P60 from the employment you are in at the 5th April 2012 (P60 issued around MAY), make an appointment to see someone at a Tax office to have your various incomes, benefits etc looked at, together with the tax paid, to see if they owe you anything.
    remember to claim tax relief on the GTC fee (form downloadable on GTC website) as that saves you£7-20 in tax and also claim tax relief on the allowable portion of your Union subs. Ask your Union how much is tax deductible. The tax people will use thsoe 2 tax reliefs to increase your tax code and thus reduce the tax that you pay.
    For anyone who has taught in previous tax years, before 6th Apr 2011, you can back claim 6 tax years at present and get a rebate of tax on the professional expenses incurred.
    Look on my threads on several forums about claiming tax relief if you have to provide kit for teaching PE at any point.
     

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