Tax  For established tax payers it’s a breeze, but for people like you and me, ‘income tax’ spells confusion. I never could understand why we have to pay half our hard earned cash to the government, but apparently its quite simple really!
 By law, we are required to pay tax on our earnings and savings, which is known as ‘income tax’. This money is collected by the Inland Revenue, and used to fund services like education and healthcare.
 Tax is paid on earnings above a certain amount per year, so those who earn more pay more tax. Everyone is entitled to a ‘personal allowance’ which is the limit a person can earn without being taxed, usually around £4,385 per year.
 Those people that work part time and do not earn above the personal allowance limit do not have to pay tax, unless they earn more than £84 per week. Students with holiday jobs that will receive less than £4,385 in the year can fill in a form called a P38(S), which prevents tax being deducted from their pay. Other allowances can also be obtained if you have to buy special clothing or equipment for you j ob which your employer does not pay for.
 If you’re confused, don’t panic! Fortunately, it’s your employer’s job to deduct tax from your earnings before you are paid and send it to the Inland Revenue so you don’t have to.
The Inland Revenue runs a helpline, which gives information and advice on tax, and you can also find a number of leaflets and books in your local library or tax office. Remember, if you do not fill in your tax forms correctly you can be fined. Read:
Sarah :o)
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