Non Tax Payers?? WHO R THEY??

[solidstan1]

WO..Slow down tigers! LOL

Sorry for causing a Rif-Raf..

Cash-YES......In the hand-NO...
Is it really possible to claim TAX CREDITS if you are "UN-EMPLOYED" ???
I was required to supply my P46 ect.
I am legaly EMPLOYED.
I was offered payment by cheque, but chose cash.
I am paid £70 after stamp duty ect.
Pay slips are available but not essential (as I usualy throw them away!)

Thanks Kate for explaining the thresh hold figure..

But just to add another twist to my original question!
My minimum wage earnings and my current rate of interest of 4.1% is below the thresh hold of £4700, however should I move my money to the new account I have found at 5.15% AER. This may just take me over the £4700 mark. I guess I may just leave it where it is for now. Save more confusion. Thanks all for the input. Even though I got more scared reading then I was reading the BAG forum
But am still glad I clarified this with my boss. Thanks again to all the replys..:o

[solidstan1]

Originally Posted by dw190

He may be paid Cash in Hand but on an amount of £70.00 per week he would be below the Single Persons Threshold. Take a look:

HM Revenue & Customs: 2005 Pre-Budget Report - 2005 Pre-Budget Report PN 2 - Income Tax Allowances, National Insurance Contributions, Child And Working Tax Credit Rates 2006-07 And Fuel Duties

Can't see where I fall in this chart!
What is the exact threshold?
What is minimum wage?
Would like to ask for more money!
Guess its worth a shot.. ..

[pmhread]

Hi there

OK... that's why the confusion arose.. based on £70 per week for 16 hours work you are way under the minimum wage. You said you are paid £70 after stamp duty... stamp duty is only payable when purchasing a property and has nothing to do with your income. Is your employer taking NI contributions? If he is then he shouldn't be.

The minimum wage for those over 21 (which I am assuming you are!) is £5.05 ph rising to £5.35 ph in October.. which means at the moment you should be bringing home £80.80 pw (rising to £85.60pw in October). Your annual earnings would then be £4201.60 (£4451.20 in October) making you eligible to claim back your tax on interest earnt. The minimum wage is not there as a guidance, it is the law and you are entitled to it as a minimum. If you don't get any joy there is a helpline you can ring 0845 6000678. I'm amazed that the DWP didn't pick up on this when you made the application...

And now comes the fun... as of October when your wage should increase again, it will take you just over the lower earnings level for NI contributions meaning you will have to pay some NI (not a vast amount, probably pennies in fact), but you would still be better off than you are now. Your employer should sort all this out on your behalf but please keep your pay slips. If only to chuck in a jar at home. You never know when you might need them.

[pmhread]

Oh yeah... if you intend to invest the £30k, go and see an IFA. There are certain places you can put some of it which are tax free anyway (such as a maxi ISA where you can invest £7k of it) thereby reducing your overall tax liability of having it sat in a bank account.

And when I have said Cash in Hand... what that means is paid in the back sack, off the books, doing a foreigner... not literally paid cash in the hand.... I assumed this was a well known phrase but obviously not.

[caro]

Originally Posted by pmhread

Oh yeah... if you intend to invest the £30k, go and see an IFA. There are certain places you can put some of it which are tax free anyway (such as a maxi ISA where you can invest £7k of it) thereby reducing your overall tax liability of having it sat in a bank account.

And when I have said Cash in Hand... what that means is paid in the back sack, off the books, doing a foreigner... not literally paid cash in the hand.... I assumed this was a well known phrase but obviously not.

I think cash in hand is a pretty well known term, which does not apply to solidstan as he has clearly been declaring his income when claiming his tax credits. Perhaps calling it voluntary work caused a bit of misunderstanding here.

Solidstan, don't worry about your income going over the taxpaying threshold as it is only the amount of income that is over the threshold that would be taxed. The amount below the threshold is tax free for everyone regardless of how much extra they earn.

This explains the thresholds for paying tax this year.
HM Revenue & Customs: Rates and Allowances - Income Tax

I would definitely keep your payslips as you are earning cash, as they prove your income. If you had cheques or it was paid into the bank, that would be another matter, but keep them to be on the safe side. At the end of each tax year your employer should give you a P60 summarising your payment for the year, so if you checked your payslips against that you would know that was accurate. You could then get rid of the payslips for that year and just keep them from April of each year. There is no doubt that you should be on the minimum wage too, so get that sorted, but don't forget to keep the tax credit people informed if your income increases, or you might end up getting overpayments which they might try and claim back.

Please feel free to keep posting your questions, as we are all here to help each other. Sometimes people only post half the story, and other members answer based on that. Then a bit more information can be added which might make a difference to what the advice would be, which can be frustrating. I have no doubt though that everyone who has answered you has been trying to help. Also there could well be people who have similar questions to yours, and so they will be helped too.

Let us know how you get on Solidstan.

[mechs]

Thats the problem Caro, and this is not directed at any one particular person ......instead of giving all the facts they post one or two and then someone answers it and then the story grows .........the person then trying to help gets frustrated and perhaps it shows in their reply ....so all I have to say is if you are asking a question give all the revelant facts at the beginning ..help someone else help you

[pmhread]

Mistakes were made... misunderstandings aplenty... things were said in the heat....In all honesty I think this thread has gone as far as it's going to get. Solidstan.... I hope amongst this lot somewhere you have something vaguely resembling a coherant answer to your original question and that you aren't put off posting further questions. We're all okay most of the time ... honest..

Would this be a suitable time for a group hug?

[mechs]

Originally Posted by pmhread

Would this be a suitable time for a group hug?

Group hug Group hug

[solidstan1]

I would like to thank EVERY person that has posted here, I have found every post to be just as interesting as the one before it. I have received more info in this thread than I could ever have excepted, and YES my question was answered satisfactory. I appologise for a misleading story early on in the thread, and hope we can all be friends. LOL. Once again I thank everyone for all input.

HUG HUG

[dw190]

Originally Posted by mechs

Group hug Group hug

Ditto.

[caro]

Originally Posted by solidstan1

I would like to thank EVERY person that has posted here, I have found every post to be just as interesting as the one before it. I have received more info in this thread than I could ever have excepted, and YES my question was answered satisfactory. I appologise for a misleading story early on in the thread, and hope we can all be friends. LOL. Once again I thank everyone for all input.

HUG HUG

No apology necessary Stan. Glad it has helped.

Can you feel the lurve.