UK income tax

Hey everyone,

Im a student, and ive started making a fair bit online (enough to live on really) but i was just wondering how much would i need to be earning before i would have to declare it to the UK government?

thanks for any help

 

I think it's something like 5000 quid mate, that's if you don't earn any other money. Not entirely sure though.

 

thanks mate, dont think ill be making that much anytime soon! and its my sole income as well

 

Is that 5000 a month?

 

id say it was a year because that would mean you dont get taxed until your making £60,000 a year

 

£5,435, give or take a few pounds

At which point you will be taxed 20% i think...

 

As a student you won't be paying tax regardless, as it will be paid back to you in arrears at the end of the financial year. You will, however, have to pay National Insurance. I do, and it's a bastard, to be perfectly honest. I can't remember the last time I used a service which NI actually pays for, so might break an arm or leg soon, just to get my monies worth

 

Spider-Man afaik anyone pays tax if they earn over the threshold...

 

Nope. I'm a 'full time' student and officially work part time, and make well over the £5435 threshold. National Insurance is paid if you earn over £105 a week, £5460 per year. Students (in Scotland, at least, but as tax is paid to the same people, I assume this is the same UK-wide) do not pay tax. If they do earn over the threshold, they are paid the tax back at the end of the financial year. Hence why I got a nice bonus last month haha

 

I'm a full time student too, and i was told if i earned over the threshold i would pay. But i never got anywhere near it.

No wonder i'm broke

 

Haha...if you did pay any tax, file a claim and you'll get it all back again

There's no reason for full time students to be broke...the amount of loans, bursaries and other free helpings is unbelievable, i love it

 

Well yeah obviously students get it back, but they do still have to pay it in the first place i'd have thought. The original question was at what point does he need to pay tax, and that is answered on here. Whether it can be claimed back or not doesn't matter.

Filling in the tax form is almost as bad as actually paying it mind haha.

 

Well, now the OP knows:

- How much he/she can earn before tax.

- How to get the tax money paid back.

- How to get his/her monies worth of National Insurance

- When he/she will get the money back.

Congratulations to all posters in this thread, that's a great constructive list we've created

 

Hey, can you tell me some good ways to earn that much.

Thanks

 

So you're saying if I'm a full time student at university with web businesses pulling in £xxx,xxx/year (completely hypothetical here), I wouldn't be required to pay tax? Just national insurance?

Edit: Intrigued, I googled and found this:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/WorkingAndPayingTax/DG_10010537

If you're a student

If you're a student, you still pay tax on your income unless all of the following apply:

* you're a full time student in the UK, only working in the holidays
* you're returning to full time education after the holiday
* your total income for the year is below the personal allowance


This is good news, it means that I can say even if I earn £xxx,xxx/year (hypothetical), I'm only 'officially' working on the holidays. However, as per the last requirement, the personal allowance is:

Everybody can earn a certain amount (known as the Personal Allowance) before they start paying tax or National Insurance. At the moment, the personal allowance is £5,035.

That was taken from a page about tax for students (http://www.hmrc.gov.uk/taxandu/index.htm)

So there's no major tax loop for full time students?

 

The limit is actually £5435 per annum for UK students, as of 2008.

And yes, you can hypothetically make £999,999,999,999,999 and not get taxed if you're a UK student in full time education.

Although, in reality, I doubt you'd make that much, but would love to see you try!

 

http://www.hmrc.gov.uk/rates/it.htm
should help you out a little

 

What about if the student was under 16?

 

No, you're wrong. If this was the case, every small-medium sized LTD up and down the UK would be owned by a full time student, because they save millions in tax?

 

nope.. you missed one very important three letter word...

You are only allowed to earn up to the personal allowance limit.

One important thing to bear in mind, if you are self employed part-time and have 'small earnings' you can claim exemption from Class 2 NI payments, the amount classed as small earning for 2006/7 was £4,665.

Class 2 NI contributions are used towards: Incapacity benefit, basic State Pension, bereavement benefits and Maternity allowance. Check the HMRC website for more info