tax advice for a unique situation

[angel fingers]

can any geeks advise on a tax matter for my daughter please.

shes 19 years old and an apprentice tatooist.
her situation is rather unique in todays workplace. she does not get paid but in return for duties in the tattoo studio she is trained by the other staff with the goal of becoming a tattooist herself in time.

additionally she has recently started working in a pub for 10 hours a week and is paid minimum wage. she is being taxed on her earnings and not brining out very much money.

she has a tax form to fill in but is really confused over what to put. are the i.r going to understand that she works all week in the tattoo studio for no money ? i'm sure she shouldnt pay tax on her low earnings.

any advice please geeks ?

 

[Helen Keating]

Hi

I am sure that the IR will understand if you tell them that she has a voluntary work placement for which she receives no money.... she should not be being taxed on her ten hours as this will be well below the tax thresh hold, however the bar job will have to put her as a second income. So the best bet is to make an appointment with the IR and they can then issue a new tax code to the bar. She will unfortunately prob have to wait till April for a tax rebate so that faster you sort it out with them the better.HTH

 

[cuticles]

If your daughter completes a P46 with the pub job and declares that this is her only job as you have said, the pub should send this to Inland Revenue to raise a code for her which should authorise a refund through her pay. Inland Revenue have a help desk which is helpful and if you ring them they will clarify the latest situation. Did your daughter have a p45 from her old job?

Regards
Cathy

 

[angel fingers]

If your daughter completes a P46 with the pub job and declares that this is her only job as you have said, the pub should send this to Inland Revenue to raise a code for her which should authorise a refund through her pay. Inland Revenue have a help desk which is helpful and if you ring them they will clarify the latest situation. Did your daughter have a p45 from her old job?

Regards
Cathy

she hasnt got a p45 because she went straight to the tattoo studio after a -levels.

shes confused over whether the pub job would count as a second job or not as she is actually unwaged apart from her time at the pub.

 

[soriminah]

I'm confused - why would she declare the tattooing as a job. She doesn't get paid for it so why put it on the form as a job. I have a friend who writes a column for a magazine that he doesn't get paid for. The tax dept wouldn't believe him so he had to get an official letter from the magazine to state it was unpaid and voluntary.

Couldn't you class it as study? If she's learning from the tattoo studio and not being paid, then she's studying. You couldn't class it as an apprenticeship because she's not being paid either.

 

[mikem]

Susan

Fill in the P46, no P45 needed and declare Bar as sole job. her tax code gets allocated to that. If she wants to egister the tattoo job as well another P46, second job and BR tax code. as she gets no pay they won't tax her.

The appointment with IR person is a top suggestion. they are usually very helpful.

Mike

 

[angel fingers]

Susan

Fill in the P46, no P45 needed and declare Bar as sole job. her tax code gets allocated to that. If she wants to egister the tattoo job as well another P46, second job and BR tax code. as she gets no pay they won't tax her.

The appointment with IR person is a top suggestion. they are usually very helpful.

Mike

we dont have a tax office in northampton any more:irked: i think the next one is quite a distance from us.

whats br tax code ?

she seems to think coz she has 2 jobs she probably will have to pay a lot of tax, but she only earns pennies:|

 

[SallyGirlJojo]

we dont have a tax office in northampton any more:irked: i think the next one is quite a distance from us.

whats br tax code ?

she seems to think coz she has 2 jobs she probably will have to pay a lot of tax, but she only earns pennies:|

firstly, you don't have to visit a tax office, you just need to ring the one which applies to your daughters job and explain the situation. for example, at sallys where i work the their specific tax office is lothians, whereas paperchase where i used to work was based in london.

BR tax code stands for Basic Rate equaling 20% i believe...not 100% about that though. They will tax anyone by the basic rate if the IR do not have a tax code for you, which your daughter does not as it is her first job. Again get in touch with the tax office applicable..it will say which one her p60 or ask at work.

she doesn't have to pay a lot of tax on two jobs, you can split the tax code...so for most people there tax code is 522L or whatever gordan browns chosen now. When i worked two paid jobs, i split my tax code so at the one where i was working 3 hours per week it was 86L (effectively £860 before i got taxed) and then 436L for the job where i worked for 14 hours per week. so therefore, i wasn't being taxed on either job, because i didn't earn over the total of £5220 for the year. Althought if your daughter is not getting paid at the tattooist then she doesn't have to let the IR know.

If she is getting over taxed she will receive it back in one of her later pay slips...

hope that helps, i've had so many jobs i'm a bit of a dab hand at this one now!

 

[Ruth Mills]

Right, if your daughter is not on the payroll at the tattoo studio then there shouldn't be a problem, as she is doing unpaid work (i.e. voluntary) in which case the pub job will be her sole source of income. You'd probably totally confuse the tax man if she put the tattoo studio's details on her tax form with a zero salary anyway!

 

[angel fingers]

Right, if your daughter is not on the payroll at the tattoo studio then there shouldn't be a problem, as she is doing unpaid work (i.e. voluntary) in which case the pub job will be her sole source of income. You'd probably totally confuse the tax man if she put the tattoo studio's details on her tax form with a zero salary anyway!

you are probably right, dont want to make it any more complicated for them !

i totally appreciate all the replies, i'll show her the thread when she comes in and i think things will be clearer for her.