Tax codes?

[*jovi_girl*]

My daughter has just messaged me asking about her tax and I’ve tried googling and I’m not really any the wiser.

She’s a 20 year old student, been working full time through the summer whilst off uni.

Her tax code is 207T

I’m not sure what this means but she’s had over £300 of deductions this month on £1300 wages.

Does that seem right?

[dubletrub]

Did she not get a letter explaining her tax code, has she had other jobs so it could be a 2nd job tax code.
She can sign up on gov.uk where they will say why she is on that code and then she can correct it if it's wrong

[disney332]

Originally Posted by *jovi_girl*

My daughter has just messaged me asking about her tax and I’ve tried googling and I’m not really any the wiser.

She’s a 20 year old student, been working full time through the summer whilst off uni.

Her tax code is 207T

I’m not sure what this means but she’s had over £300 of deductions this month on £1300 wages.

Does that seem right?

See more...

Tax codes are not definitive and final. Very often they are allocated due to a lack of info at the revenue.

This is the reason for a T code.

Ring them., adjustments within the tax year are simple and easily done so repayments if appropriate are received at the next pay day. That is the beauty of the PAYE system.

Disney332

[JudyC]

That's only allowing her go earn £2070 a year before paying pay. Most people have a code which allows £12000 a year before paying tax on income. She needs to contact the tax office and ask what info they require

[lindylou46]

I think as she is only working full time during the summer then she might have been put on an emergency tax code which should show up on her pay slip? As far as l am aware you have a personal tax code which allows you to earn a certain amount before paying any tax but as she is only in seasonal work it might take some time to adjust. Probably best to give the tax office a call on Tuesday.

[Magic Mouse]

Good luck contacting the tax office.

My daughter had a temporary job over the summer before going to uni and was taxed.

She called the tax office and was told they couldn’t do anything until she had been working for five weeks. She called them again after five weeks by which time her contract had ended to be told that she would have to ring again four weeks after finishing!

She’s going round in circles with them. It’s not a huge amount but as a student, it’s a lot to her.

[Pussycat Doll]

As an employer that doesn’t seem right at all. The tax office opens at 8 am, that’s a great time to call as she’ll get straight through and they’re usually in a good mood due to not having had irate customers at that time!

[Guest]

Originally Posted by Magic Mouse

Good luck contacting the tax office.

My daughter had a temporary job over the summer before going to uni and was taxed.

She called the tax office and was told they couldn’t do anything until she had been working for five weeks. She called them again after five weeks by which time her contract had ended to be told that she would have to ring again four weeks after finishing!

She’s going round in circles with them. It’s not a huge amount but as a student, it’s a lot to her.

See more...

It was correct that she was taxed in the first place, tax is always calculated on the assumption that the employment will be ongoing for the rest of the tax year.

Obviously this was not the case and she overpaid tax. To get this back she doesn't need to call anybody, she needs to fill in form P50 which can be done online or through the post.

gov.uk/government/public...ed-working-p50

[Fuellady]

post removed - wrong info

[Guest]

Originally Posted by Fuellady

Students don't pay tax (at least not in Scotland, sorry don't know if this is applicable to you, and I don't know if English tax law is different).

This has happened to my daughter with 2 different employers, once while she was still at school and once whilst she was a college student. Both times she phoned HMRC and they sent a new tax code which meant she wouldn't get charged to her employer, and it was refunded automatically in her next pay.

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I will refrain from commenting on tax law in Scotland. But in England, students are not taxed any differently to anyone else.

Students generally do not pay tax because their earnings are nearly always below the personal allowance. But students / children even are most definitely not exempt from tax.

If a student were to secure a very high paying role during holiday time and earns over the personal allowance they will pay the same tax as anybody else earning the same amount. I would be very surprised to learn this is different in Scotland. If I have a spare few minutes I may look it up.