Tax years...

[Ceejay123]

I've been liaising with student support in order to find a suitable placement for myself for next year. My other half is thinking of either not doing one to jump to his third year, or volunteering for one so his student finance entitlement wouldn't change.

However, with me... It looks like I'll be taking on a paid placement. Something university said sounded completely odd to me... Anyone have any ideas?

Usual placements are between 14-30k depending on where and what you do. Nottingham placements are the lower end, usually around 17-18k unless you go to work in a bank ( which I'm considering for the security end)

But university said, if for example.. You do a 9 month placement, on 20k a year, So you'll earn around £15k over 9 months.. You'd expect to pay tax. I was talking to them about monthly salaries, and they skipped out tax.. I said 'what about tax?' To which they said
"Well, if you earn 15k over 9 months during university, it spans over two tax years as it'd be around October to July.. University students are allowed to earn 9.5 k a year before tax, so you wouldn't be paying it as you'd technically be earning around 7.5k a tax year'


I didn't think it worked out like that, I thought they averaged your monthly salary to work out tax? They've confused me so much! Any ideas? X

 

[Boomerslady]

Ok I'm not brilliantly clued up on this, but as I see it, if your monthly wages would equal (over 12 months) more than the low tax limit you would be taxed. However if you then only worked 6 months of that tax year, and the amount you earnt was below the threshold you'd get it back in a tax rebate. Make sense?!

Like for example I paid tax on my wages when preg with Ben. I went on Mat leave in the October so only worked 7 months, and I got back all of the tax I'd paid. This is making sense in my head!!!

 

[wishuwerehere]

You would be taxed at the time but if you earned below the threshold for the tax year (personal allowance is the same for everyone, btw) you could contact the tax office to claim it back.

 

[Ceejay123]

Now that makes sense to me! Thank you. I was going to say , I'm sure they average it out to see if you'll earn over a certain amount. that makes more sense. X