cadets wages

[dannyboy]

Just a quick question but as a cadet I know i have to pay NI but do we need to PAYE tax on are wages.

[noworries182]

When i was a cadet between 2007-2010, i didn't pay any national insurance and certainly no tax. It was not considered a wage it was sponsorship and on your 'wage' slips it should say at the bottom what the taxable amount is for each month, that should be Nil. i can't speak for all companies but thats how my company worked.

also, when you're a cadet you should be registered as a student at some college. this means that you can inform the national insurance thieves that you are a student and you will be exempt from paying N.I. until you start earning a 'wage' again.

best bet would be to phone your company, swerve emailing them. there paid to tell you things like this, so make them earn there money! =]

[Ducki52]

I pay some NI on my wage, and a minuscule amount of PAYE, but I have been in full time employment for four years previous to this, and I was already well over the personal allowance when I started my cadetship, so I'm expecting it to take a few months to settle down and also a nice rebate in April

[GuinnessMan]

I pay some NI on my wage, and a minuscule amount of PAYE, but I have been in full time employment for four years previous to this, and I was already well over the personal allowance when I started my cadetship, so I'm expecting it to take a few months to settle down and also a nice rebate in April

Why don't you just claim it all back now your a full time student? It's what I did...

[ETwhat?]

yeah dont wait till april to fill forms in, tell them now that you have become a student and therefore stopped earning and they will calculate it out and theres a vague chance of having it in jaurary.

NI and HE has something funny but at this hour i cant remember,

[thebrookster]

Depends on the company I suppose, but my old company (Clyde Marine) were quite specific that they paid a Sponsorship payment, NOT a wage, and therefore it is exempt from NI and Tax (PAYE).

I would expect all the companies would work on the same basis, because if they were to start paying you wages, then all of a sudden they are subject to minimum wage requirements/NI Contributions etc etc, which would cause a lot of them a bit of a stushie!! Let's be honest, most shipping companies train UK cadets because of tax benefits (tonnage tax etc), so why would they want to pay a wage that means they have to pay even more? Call it a sponsorship, then it avoids it all! (Same as a stipend, often used in Academia for similar reasons).

[jayne57b]

So to clarify, if your company clearly states you are sponsored, not employed, does that mean even if your yearly pay is above HMRC threshold you will not be liable for tax on your sponsorship payments?

[thebrookster]

As far as I am aware, yes.

The best method for making sure however is to speak to your training company, I am not an accountant! My post above is what happened with me, there is of course no guarantee the case will remain the same (tory governments don't want us to actually have money!!)

[lumo030594]

bursaries are free of income tax and NI so what ever your getting is all yours!!!!!