Should my daughter be paying tax and nic?

[lornemalvo]

My daughter works part time for a small (fairly disorganised) employer. She was an apprentice for a year, earning under the income tax threshold. She is now qualified and her annual salary is now around £2000 over the income tax threshold (for the past month or two). She is paid weekly. Should she start paying tax and NIC immediately her weekly wage exceeds the equivalent of the annual threshold? Any advice appreciated.

[AndyAudi]

Young folk don’t need to pay NI, let me check.

Ok I got confused, employee doesn’t need to pay a % on apprentices & young people, but I think employees themselves still do.

One thing I remember though is national insurance is not cumulative like tax, so if payment is irregular some months/weeks will have deductions / others not

Edited by AndyAudi on Friday 12th August 22:43

[Eric Mc]

If her salary exceeds the NI and tax thresholds, then she should pay both tax and NI. If the employer does things correctly, she should pay the correct tax and NI.

[Armitage.Shanks]

Chances are HMRC will catch up at some point and demand it. Ideally it’s better to pay straight away rather than owe them.

My daughter works part/full time between university terms and they always take the tax/NI even though her annual overall doesn’t meet the threshold. She gets it back after several months of waiting

[Countdown]

lornemalvo said:

My daughter works part time for a small (fairly disorganised) employer. She was an apprentice for a year, earning under the income tax threshold. She is now qualified and her annual salary is now around £2000 over the income tax threshold (for the past month or two). She is paid weekly. Should she start paying tax and NIC immediately her weekly wage exceeds the equivalent of the annual threshold? Any advice appreciated.

if she's earning £14.5k per annum then she'll be paying NI as it's over the £12.5k threshold.

She'll be paying tax if she earns above the personal allowance during the tax year.

[driver67]

Does she not receive a weekly payslip ?

That would identify all deductions each pay period.

Is the employer paying cash ? They may not be submitting anything to HMRC for all you know.

Dougie.