Income Tax

[Bob906]

A neighbours son (who is at college but on hols) is working in the local shop he is 16 years old and he works over 16 hours a week and gets about �170. a week. Is he supposed to pay income tax or NI contributions? He says he doesn't till he is 18 because he is still in full time education, i say he is wrong. Who is right?

[queen 1954]

according to the income tax website everyone is liable for income tax.he will have a personal allowance for the year but if he dosnt earn that amount during that year he can claim it back at the end of that year.however if he only works in the holidays (not including evenings and weekends on a regular basis) he can get a form from the tax office so that he dosnt get taxed as obviously he wont go over his allowance if he only works during the holidays.

[dzug]

You are. Full time education is irrelevant.

He must pay NI contributions from age 16 if he earns more than (roughly) �100 a week.

If he earns more than the personal allowance he must also pay tax - �170 a week over a whole year is definitely taxable.

The only concession for a student is that if he is likely to earn less than the personal allowance in the whole tax year, but is currently temporarily earning too much, he can sign a form (P38) to avoid paying the tax now and having to claim it back later when not employed


http://www.direct.gov.uk/en/MoneyTaxAndBenefit s/Taxes/BeginnersGuideToTax/DG_4015904

and a section in here:

http://www2.essex.ac.uk/jobshop/help/tax.shtm

have useful info

[kags]

dzug is right about the p38 form, but it can only be used during the long summer holidays. AT the moment he will have to pay the tax and NI and then claim it back from HMRC once he finishes the job. If he is planning to work in the sumnmer holidays as well, he will have to wait until he can declare to HMRC that he will have no more earnings in the tax year.