New employee and PAYE ???

[Carpetman]

Hi,
my first Employee starts work with me on Monday, he is a 15 year old school leaver and wont be 16 until the end of July. I am going to pay him £141.20 per week (40 hrs max at the NMW £3.53). I understand he should not have to pay NIC until he is 16 but I have just been told by the HMRC employer helpline that he will have to pay Income tax. My payroll software and the official HMRC CD-ROM both do not show any tax coming off his wage. P 46 filled out with box A ticked, We have put X for the NI table because he has no NI number and when I put in A it deducts NI contributions. I am ever so slightly confused and any help would be appreciated !

Thanks

[Zeno]

Can you leave school at 15?

There are various rules for the employment of under 16s both nationally and from your relevant local authority.

I would look into this before you employ him.

[Carpetman]

Yes you can leave at 15. At 15 if you want to leave school you are described as someone of above school leaving age and under 18 for Minimum wage purposes. He has just finished 4th year in secondary school (In Scotland). No one from the school(I wrote to them to regarding the position) or HMRC has flagged up any opposition to employing a 15 year old. You are right here are strict laws about the hours they can work etc until they are 18.

thanks

[elainec100@cheapaccounting]

here is the rule on this:

1997 The creation of a single school leaving date came into effect on September 1st 1997. which meant that All children of compulsory school age (5-16), both those enrolled in school and those educated otherwise than at school, must remain in education until the last Friday in June in the school year that they reach the age of 16.

[Carpetman]

here is the rule on this:

1997 The creation of a single school leaving date came into effect on September 1st 1997. which meant that All children of compulsory school age (5-16), both those enrolled in school and those educated otherwise than at school, must remain in education until the last Friday in June in the school year that they reach the age of 16.

Thanks for this, but the rules are different in Scotland as follows ;

The answer below is to the question 'When can you leave school ?'

31st May of that year if your 16th birthday is between 1st March and 30th September or the start of the Christmas holiday if your 16th birthday is between 1st October and the last day of February.


It has not been easy to find the relative information but I do believe it is different in Scotland as described above . You guys have certainly made me think though ! :)

[KidsBeeHappy]

The reason that there is probably no tax due is that we're part way through a tax year, and he's no previous wages, so he's got the tax free part accruing for the weeks that he hasn't worked so far this year, if that makes sense.

[Carpetman]

Thanks for that info, thats probably the answer. You would have thought the new employer helpline may have been able to work that out eh ?

Thanks to all who have replied.

Carpetman