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► PAY, TAX & HOLIDAYS
Part-time employees have the same statutory employment rights as full time employees. You do not have to work a minimum number of hours to qualify for employment rights.
PAY
If you're employed on a casual, temporary or part-time basis by law your employer must:
• deduct tax and National Insurance contributions from your wages
• give you payslips
• deduct student loan repayments, if relevant
• give you a form P45 when you leave
• give you a P60 tax summary at the end of each tax year if you still work for the employer
What about cash in hand?
It's illegal for your employer to pay you cash in hand without deducting tax and National Insurance contributions from your wages.
If you accept money in this way, you risk losing your employment rights and the right to some benefits, such as:
• maternity or paternity leave
• sick pay
• Jobseeker's Allowance
In addition you could end up having to pay the tax and National Insurance contributions yourself.
For any further pay advice please see the Directgov website;
http://www.direct.gov.uk/en/Employment/
***NATIONAL MINIMUM WAGE***
The National Minimum Wage (NMW) is a minimum amount per hour which most workers, including part-time workers, in the UK are entitled to be paid.
The rate is reviewed every year any changes take place in October.
All employers have to pay the NMW to workers who are eligible for it – there are no exceptions for different types or size of employer. Where you work in the UK makes no difference to the level of NMW you should receive.
The rate is reviewed every year any changes take place in October.
All employers have to pay the NMW to workers who are eligible for it – there are no exceptions for different types or size of employer. Where you work in the UK makes no difference to the level of NMW you should receive.
Rates from 1 October 2012……
· £6.19 per hour for 21+
· £4.98 per hour for 18-20 year olds
***The Student Job Shop does not advertise any positions which do not pay NMW……...
It is against the law for an employer to pay you less than this.
Please contact the Job Shop if you have any questions or concerns about your pay.
For any further pay advice please see the Directgov website;
http://www.direct.gov.uk/en/Employment/
TAX
What is income tax and when do I have to pay it?
Income Tax is your contribution to government spending and is used to pay for services such as education, defence, social security and law and order.
If you earn over a certain amount of money per year you will need to pay Income Tax.
If you work for someone else, your Tax and National Insurance will be paid automatically. It comes straight out of your wages before you even receive them. The amount deducted will appear on your wage slip and they will pay your Tax directly to the Inland Revenue for you. This is known as Pay As You Earn (PAYE).
The Tax year runs from 6th April to 5th April each year.
How much tax do I pay?
You do not pay tax on all of your earnings. Everyone receives a personal allowance, which is shown to the employer in the form of a code so that they know what your personal allowance is. The standard personal allowance for a single person in the Tax year 2010 - 2011 is £6,475.
Above £6,475, the amount you pay depends on the amount you earn.
Up to £6,475 Tax Free
Over £6,475 20%
(basic rate)
Over£37,400 40%
(higher rate)
You will pay Tax immediately, not just after you have earned your personal allowance, as the Tax deductions are spread over the year according to your weekly earnings.
For any further tax advice please see the Directgov website;
http://www.direct.gov.uk/en/Employment/
TAX FORMS
When you begin your employment, you need to fill in a Tax form to ensure your employer does not deduct too much tax. The type of form will depend upon the circumstances.
If you have worked within the current tax year?
P45 – you will be given one of these when you leave employment. If you have a P45 from a previous employer you will need to give it to your new employer, otherwise too much tax may be deducted. Make sure you do not lose this form as copies are NOT available.
If you have not worked in the current tax year?
P46 – fill this in if you have not previously worked in the current tax year. If you secure more than one job you should again ask for a P46 but do not tick any of the boxes at the top or sign the declaration.
Only working in the vacations?
P38(S) – if you are planning to work in the vacations only and you know your income will not exceed the personal allowance you can ask to sign a P38 to stop Tax being deducted. However, if you intend to work during term-time you should not fill in one of these forms, even if you are not going to reach your personal allowance threshold.
Paid too much tax?
P50 – If you think that you have paid too much Tax, you can fill in this form to claim back your overpayment, this is done in April which is the end of the Tax year.
You can check if you are due a refund by using the Inland Revenue's Tax checker; www.hmrc.gov.uk/rates/it.htm
Final tax code?
P60 — At the end of the Tax year you’ll receive a P60 from your employer. The P60 confirms your final Tax code for the year and gives details for the year that has just ended.
For any further tax advice please see the Directgov website;
http://www.direct.gov.uk/en/Employment/
HOLIDAY ENTITLEMENT
There is a minimum right to paid holiday, but your employer may offer more than this. The main things you should know about holiday rights are that:
• you are entitled to a minimum of 5.6 weeks paid annual leave (28 days for someone working five days a week)
• part-time workers are entitled to the same level of holiday pro rata (so 5.6 times your usual working week, eg 22.4 days for someone working four days a week)
• you start building up holiday as soon as you start work
• your employer can control when you take your holiday
• you get paid your normal pay for your holiday
• when you finish a job, you get paid for any holiday you have not taken
• bank and public holidays can be included in your minimum entitlement
• you continue to be entitled to your holiday leave throughout your ordinary and additional maternity, paternity and adoption leave
• you are entitled to a minimum of 5.6 weeks paid annual leave (28 days for someone working five days a week)
• part-time workers are entitled to the same level of holiday pro rata (so 5.6 times your usual working week, eg 22.4 days for someone working four days a week)
• you start building up holiday as soon as you start work
• your employer can control when you take your holiday
• you get paid your normal pay for your holiday
• when you finish a job, you get paid for any holiday you have not taken
• bank and public holidays can be included in your minimum entitlement
• you continue to be entitled to your holiday leave throughout your ordinary and additional maternity, paternity and adoption leave
In order to qualify for the right to annual leave you need to be classed as a worker. If you are self-employed, you have no statutory right to paid annual leave.
For any further employment advice please see the Directgov website;
http://www.direct.gov.uk/en/Employment/