Tax, not a clue how it works.

DJOK

i got a P60 today, and on it, it says "tax credit 3520.00" whatt does that mean? does that mean I can get that back? im 19 and still in college and havent worked enough to be taxed, im so confused about this.

IsThatSo?

uumm, think i mixed up the explanation for tax credits with the older tax free allowance..............apologies.

Ticktactoe

DJOK wrote: »

i got a P60 today, and on it, it says "tax credit 3520.00" whatt does that mean? does that mean I can get that back? im 19 and still in college and havent worked enough to be taxed, im so confused about this.

The 3520 tax credits stated on your p60 are your standard tax credits - personal tax credit of 1760 and Paye tax credit of 1760. Your tax credits are deducted from your tax due figure i.e say your income for last year was 21,000... that would be subjected to 20% tax rate meaning that your tax due would be 4200. This is where your tax credits kick in. The tax due of 4200 is reduced by your credits of 3520 and therefore the tax you then have to pay on your income of 21,000 is 680. If you earned the 21,000 over the 52 weeks of last year, that means that the amount of tax you paid weekly was 680 / 52 = 13.07 pw.

Thats why you may hear people talking about claiming their extra tax credits because if you had more credits the figure would be less that 680 or 13.07 a week.

Hope this made some sense to you!