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    • whambam
    • By whambam 10th Sep 17, 9:00 PM
    • 163Posts
    • 22Thanks
    whambam
    Income Tax Personal Allowance
    • #1
    • 10th Sep 17, 9:00 PM
    Income Tax Personal Allowance 10th Sep 17 at 9:00 PM
    How does it work nowadays?

    When I was working before they used to give you an allowance on both income tax PAYE and National Insurance? You used to use up your allowances for the first 5-6 months of the year THEN start to pay tax as your allowances on both Income Tax and NI have been used up for that financial year.

    Has things changed or still the same?
Page 1
    • Caz3121
    • By Caz3121 10th Sep 17, 9:12 PM
    • 10,780 Posts
    • 7,022 Thanks
    Caz3121
    • #2
    • 10th Sep 17, 9:12 PM
    • #2
    • 10th Sep 17, 9:12 PM
    When I was working before they used to give you an allowance on both income tax PAYE and National Insurance? You used to use up your allowances for the first 5-6 months of the year THEN start to pay tax as your allowances on both Income Tax and NI have been used up for that financial year.
    Originally posted by whambam
    PAYE tax your allowance would be spread over the year, e.g. you will receive 1/12th of the allowance per month and tax calculated each month if paid monthly
    NI is also based on pay period and is payable if earned over £x that week/month https://www.gov.uk/national-insurance
    • 00ec25
    • By 00ec25 11th Sep 17, 1:17 AM
    • 4,770 Posts
    • 4,147 Thanks
    00ec25
    • #3
    • 11th Sep 17, 1:17 AM
    • #3
    • 11th Sep 17, 1:17 AM
    income tax has NEVER worked the way you describe, if you are in PAYE, you do not suddenly start paying tax part way through the year.
    If not in PAYE, you pay tax (in simple terms) when you do a tax return

    Read the many websites that explain the facts you are looking for:
    http://lmgtfy.com/?q=how+does+uk+income+tax+work

    NI works on the basis that every time you get paid you get taxed in isolation on that payment only and get the allowance against that payment. the next payment you get then repeats the same process, if you are paid weekly the current allowance is £157, if monthly £680.33. (If a director of a small company there are special rules around annual payments)
    Last edited by 00ec25; 11-09-2017 at 8:17 AM.
    • whambam
    • By whambam 11th Sep 17, 9:45 PM
    • 163 Posts
    • 22 Thanks
    whambam
    • #4
    • 11th Sep 17, 9:45 PM
    • #4
    • 11th Sep 17, 9:45 PM
    Yeah before I don't think I was in PAYE and was expected to do a tax return end of year.
    • 00ec25
    • By 00ec25 12th Sep 17, 7:26 AM
    • 4,770 Posts
    • 4,147 Thanks
    00ec25
    • #5
    • 12th Sep 17, 7:26 AM
    • #5
    • 12th Sep 17, 7:26 AM
    Yeah before I don't think I was in PAYE and was expected to do a tax return end of year.
    Originally posted by whambam
    then your ignorance of how tax works is astounding
    • agrinnall
    • By agrinnall 12th Sep 17, 8:29 AM
    • 18,430 Posts
    • 14,142 Thanks
    agrinnall
    • #6
    • 12th Sep 17, 8:29 AM
    • #6
    • 12th Sep 17, 8:29 AM
    then your ignorance of how tax works is astounding
    Originally posted by 00ec25
    Astounding but sadly (given the questions we see on here every day) not that surprising.
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