How much tax approx. for student on placement - advice please

[lesterlassone]

DD currently in year 2 at university will be starting a 12 month work placement in June, with a salary of £13,000. She needs to budget carefully for accommodation and hopefully running a little car, so could anyone give an approximation of what she will have per month after deductions.

I know there's an amount allowable before tax is applicable but don't know the basic level or rate of tax. Can anyone help please - just a rough figure of "take home" pay each month.

You can use my calculator which says she should take home £934 per month, although it will be a little higher in the first month. When she finishes in June 2014 she will be able to claim back tax paid from April 2014 if she is going back to uni in the Autumn.

Oops, got my years out of synch, I'll try again:

You can use [[http://www.mranchovy.com/calc/paye201213
my calculator]] which says she should take home £948 per month, although it will be a little higher in the first month. When she finishes in June 2013 she will be able to claim back tax paid from April 2013 if she is going back to uni in the Autumn.

If she starts in June she'll earn approximately £10,800 in the remaining 10 months of the 2012/13 tax year. The personal allowance is £8,105. She'll pay 20% income tax on what's left - £539 - and £385 in NI. So she should get around £988/month if her tax code is correct. If her employer puts her on an emergency tax code, her tax bill could be higher to start with. As Mr Anchovy says, for the work she does between April and June 2013 she will be charged tax which can be easily reclaimed if she isn't planning to do any more paid work that tax year.

"If she starts in June she'll earn approximately £10,800 in the remaining 10 months of the 2012/13 tax year. The personal allowance is £8,105. She'll pay 20% income tax on what's left - £539 - and £385 in NI. So she should get around £988/month if her tax code is correct."

No, thats not how PAYE works. She is paid £1,083 a month and the tax allowance is £675 a month meaning that normally she will pay £82 in tax and £54 in NI, leaving £948 a month. But in June she will get 3x£675 allowance so won't pay any income tax, in fact her income won't have 'caught up' with the tax allowance until September when she gets 6x£675 allowance = £4,050 and will have earnt 4x£1,083 = £4,333 so will pay £57 of income tax.

National Insurance however does not work on a cumulative basis so your calculation is wrong there too.

So her take home will be £1,030 in June - August, £972 in September and £948 in October-March.

"If her employer puts her on an emergency tax code, her tax bill could be higher to start with."

No, the correct emergency tax code for someone with no other job since 6 April 2012 is 810L which will give her the tax calculations above. It is possible that the employer does not follow the correct procedure (she should make sure that the employer asks her to complete a P46 form before she is first paid) which would lead to 20% tax being deducted on all of her pay, but then it is possible that the employer does not follow the correct procedure and forgets to pay her at all - anything is possible, but not necessarily helpful to know!

I could have done without taking the time to post all this detail, I don't know why people think it is helpful to post things when they don't know what they are talking about, particularly when a correct answer has already been given by someone who does know what they are taking about.

Perhaps you need to preface each post with I know what I'm talking about so no one else is to post on this thread MrAnchovy - that way the annoying habit of people posting on a public forum after you ...might be minimised

The preface 'Mr' is shorthand for exactly that Toothbrush.

Thank you to all who responded, most helpful and will enable us to do some more detailed budgeting.