Paying Tax?

[Hitman]

Hey, I'm confused so maybe one of you will know more about this than me. Basically, I'm 16 and working online. The amount I'll receive per month could be £X to £XXXX. Let's assume it's £1000. Would I need to pay tax (I'm guessing a big fat YES YES YES), if so how much and how? This money would arrive by cheque or PayPal. The money comes from the USA.

Any help would be appreciated, I have no idea how it works.

[Firehorse]

http://tinyurl.com/ydu2onl

Edited by invincible (Forum Super Moderator): Please don't post pointlessly

[Hitman]

http://tinyurl.com/ydu2onl
Congrats on bumping up your post count. :eusa_clap

Anybody else, with something useful? Somebody who actually knows/deals with this stuff?

[adaym]

No you don't.

[The Professor]

Nope you pay no tax until you're 18 AFAIK. Apart from VAT on sweeties and stuffs

[Hitman]

No you don't.


Nope you pay no tax until you're 18 AFAIK. Apart from VAT on sweeties and stuffs
Surprising to hear, I'd of thought the government would have wanted some of my money... damn them taking money for my chocolates. :'( thanks very much for replying.

[PaulMacC]

That means I do not have to pay tax on my machinima money :o

[GoldenMerc]

But you will have to register your company i think. Il ask my parents tomorrow tomorrow for you if you like.

[Hitman]

But you will have to register your company i think. Il ask my parents tomorrow tomorrow for you if you like.
Hellllllllllllooooo Ross. It's not my company, it's somebody elses but many people work under it if you get what I mean (like an affiliate I guess).

[alexxxxx]

there's a threshold where you get so much money tax free (i think its about £10k a year) then you have to pay tax after that.

[Firehorse]

Congrats on bumping up your post count. :eusa_clap

Anybody else, with something useful? Somebody who actually knows/deals with this stuff?

The first result of the google search has all the answers. I pointed you to the answers therefore its not a pointless post.

Jheez



how about I give you a direct link or even copy the text? http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10010555



Payslips



Each payday, your employer should give you a payslip. It's a receipt for the tax you've paid, showing details like:

your earnings before tax - your 'gross pay'
Income Tax, National Insurance contributions and student loan repayments, if relevant, that were deducted from your pay
your earnings after tax - your 'net pay'
your tax code


More about National Insurance (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/DG_4015904)


Income Tax - the basics (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/IncomeTax/IntroductiontoIncomeTax/DG_078825)
PAYE Coding Notice



When you start work, HMRC will send you a tax code on a PAYE Coding Notice. They also send a copy of the Coding Notice to your employer, who'll use it to work out how much tax to deduct from your pay.

Tax codes - the basics (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/IncomeTax/Taxcodes/DG_078568)


Understanding your PAYE Coding Notice (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/IncomeTax/Taxcodes/DG_078546)
Emergency tax codes

Your employer may use an 'emergency tax code' until HMRC issues the right one. If you've paid too much tax you'll get it back through PAYE.


If you leave your job before you get the right code, or you want to claim tax back for a previous tax year, you can apply to HMRC for a refund.

Tax refunds and reclaiming overpaid tax Opens new window (http://www.hmrc.gov.uk/incometax/refund-reclaim.htm)


Emergency tax codes (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/IncomeTax/Taxcodes/DG_078397)
PAYE forms P45, P46 and P60


P45



The form P45 is a record of your pay and tax deductions. You'll get it from your employer when you stop working for them. It shows details like:

your tax code and PAYE reference number
your leaving date
your wages so far in the tax year - 6 April to the following 5 April
how much tax was deducted from your wages
A P45 has four parts. Your employer sends one part to HMRC and gives you the other three. When you start a new job, you give two parts to your new employer and keep the other one called Part 1A for your own records.

P46

If you're starting your first job and don't have a P45, your employer will give you a P46 form to fill in and sign. HMRC will then process your P46 and issue your tax code.

P60

Form P60 is an annual summary of all your payslips. Your employer gives you one at the end of every tax year, if you still work for the employer. You keep your P60 as a record of your pay and the tax that was deducted.
You must keep your P60 safe as your employer is not allowed to give you a copy if you lose it.

Student loan repayments

If you've got a student loan to repay, it'll happen automatically through PAYE once you start working and earning more than the repayment threshold.


HMRC gives your employer the information they need to deduct the right amount from your wages. Your payslip must show how much has been deducted. If you have any queries about your student loan repayments you can contact your Tax Office - look on your PAYE forms for their details.

Contact details for all Tax Offices Opens new window (http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp)
Keeping records


What records to keep



Keep the paperwork that contains details about your pay and tax, like:

payslips and PAYE Coding Notices
P45 and P60 forms
details of taxable expenses
'benefits in kind' forms from your employer - a benefit in kind is something you get for doing your job that isn't money
information about any redundancy award or termination payment you get when your contract ends
certificates for any 'Taxed Award Schemes'
notes of any tips or gratuities you get and any other taxable income or benefits that you haven't already recorded somewhere else
details of any state benefits you've received
If anyone (other than your employer) gives you benefits in kind for doing your job, you should keep a note of their name and address and what they gave you.

Why keep records?



You'll need to refer to your records later if you ever need to:

complete a Self Assessment tax return
reclaim overpaid tax
apply for benefits and tax credits

How long to keep them

HMRC suggests you keep your records for at least 22 months from the end of the tax year they relate to. The tax year runs from 6 April to the following 5 April, so keep paperwork until at least 31 January nearly two years later.

More useful links


General advice on looking for work and at work (employment section) (http://www.habboxforum.com/en/Employment/index.htm)


Finding work, job schemes and disabled employee rights (disabled people section) (http://www.habboxforum.com/en/DisabledPeople/Employmentsupport/index.htm)


Self Assessment - your tax return (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/SelfAssessmentYourTaxReturn/index.htm)


How the tax system works for employees Opens new window (http://taxaid.org.uk/help.cfm?secnav=2&articleid=72)


Repaying student loans through PAYE (education and learning section) (http://www.habboxforum.com/en/EducationAndLearning/UniversityAndHigherEducation/StudentFinance/RepayingStudentLoansCoursesStartingFrom1998/DG_10034870)


Tax when starting, leaving or retiring from work (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/IncomeTax/GettingyourIncomeTaxright/DG_078352)


Tax for the employed (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10016783)


Tax when employing people in your home (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10027015)
In this section...


Tax for the employed (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10016783)
Tax for the self-employed (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10016920)
Work out if you're employed or self-employed (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_4015975)
Tax on casual, part-time or temporary work (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10010537)
PAYE forms: P45, P46, P60, P11D (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10013512)
Tax on company cars and other benefits (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10021716)
Tax on tips and bonuses (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10026509)
Tax on employee share schemes (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10022224)
Tax when employing people in your home (http://www.habboxforum.com/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10027015)


Oh and another direct answer: No your employer fills out the forms for tax and its paid before you receive your wages. You only need to worry about it yourself when you're self-employed.

Even if you're working online your employer pays the tax, if they don't then its them doing it illegally not you.

[Hitman]

The first result of the google search has all the answers. I pointed you to the answers therefore its not a pointless post.

Jheez



how about I give you a direct link or even copy the text? http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10010555



Oh and another direct answer: No your employer fills out the forms for tax and its paid before you receive your wages. You only need to worry about it yourself when you're self-employed.

Even if you're working online your employer pays the tax, if they don't then its them doing it illegally not you.
For the record, I didn't report your post, seems the mod agreed with me... anyway, thanks for the second part of your post, most helpful.

Merry Christmas.

[adaym]

there's a threshold where you get so much money tax free (i think its about £10k a year) then you have to pay tax after that.
£6,000.