Paying Tax?

Question

I am 17 years old and have been working since i was 16. i have been paying tax (Well it gets took out of my account) for the past year or so, one of my friend where saying i should not be paying as im under 18 or i should get it all back when i am 18? Is this true, i stay in Glasgow BTW

Answer 1

I've had a quick look at the direct gov website on taxes (link below), but I can't see it stating anywhere that you don't pay tax till you are 18. As far as I can work out, as soon as you get your NI number you will pay tax if you earn above the allowance allocated to you.

For this year the allowance would be £5,435. If you earned less than that last year, depending on what last years allowances were, you may be able to claim some of it back.

Check out the link for yourself & see what you can find.

Answer 2

As I am aware everyone has to pay tax if they earn more than the personal allowance given by the government every year. For 2008/9 it is £5435. If you get paid monthly and you earn more than £453 per month (5435/12) you will get taxed.

Answer 3

Sorry, under 18s are not exempt from tax, that is a myth. Even a new-born baby would be liable if its income level was over the available tax-free allowance. It is true not many under 18s pay tax, but that is because their incomes are less than the tax-free personal allowance, currently £5435, but goes up to £6035 in September, when it becomes retrospective back to 6th April, the start of the tax year. This is proper to all of the UK.

Look at www.listentotaxman if you have a form P60 for the year up to 5th Aril 2008. The allowance then was £5225. Imput form P60 details, and it will calculate your tax liability for you.

If you start work in the middle of a tax year, you may have a backlog of tax allowance, and would be due a repayment for that year. If you think you have overpaid, send form P60 to tax office, and ask for computation and refund.

Answer 4

Yes you pay tax whatever age as long as you earn above the lower earnings limit for tax which you usually would if your working full time, i can't think of the actual figure but its around £400 a month. A lot of people think that under 18's don't pay tax as there is a way that students who only work out of term time can complete a form to become exempt from tax. One thing though, if your on a tax code called BR (which I was until I learn't anything about tax codes) it would be a good idea to call your payroll dept for a form called a p46 which once completed and returned will get you an emergency tax code which will give you some tax relief. Hope this helps!