Personal Tax Allowance

golden_slumbers

Hi all,
I started work full time in July after graduating. This is my first job since last summer when I worked for about 3 months without being taxed.

So far my gross pay is about £3500. About 2 weeks ago I started being taxed (Around £45 a week). I assumed I hadn't been paying tax before then becasue I hadn't gone above my personal allowance, but that doesn't seem to be correct because the allowance is £6035.
Can anyone shed some light on why I have started being taxed after earning £3500?
Thanks.

Velja

At the end of this finanacial year (April 2009), once you get your P60 you will be able to see if you overpaid the tax and claim it back.

You don't get taxed after you exceed your Personal Allowance. I am not sure why you worked for 3 months without being taxed..

Mikeyorks

Because your Personal Allowance is allocated proportionately through the year - otherwise you'd pay no tax in the first few months and then disproportionate amounts later on.

So you have £6035 / 12 = £503 of your PA allowed each month. But as you only started work after April ..... you've been catching up the unused allowance - and just have!

Mikeyorks

Velja wrote: »

You don't get taxed after you exceed your Personal Allowance.

What on earth does that mean? Your PA is essentially a £0 rate tax band - and you are taxed once you exceed that.

Velja

Mikeyorks wrote: »

What on earth does that mean? Your PA is essentially a £0 rate tax band - and you are taxed once you exceed that.

I meant to say that it doesn't mean that you get taxed only after you exceed your personal allowance. It gets spread out over 12 months.
But I can see how it could be misread. Poor choice of grammar on my behalf!

Mikeyorks

DIY_Accounting wrote: »

Gross earnings 7 months to 30 Sept £3,500
Personal allowance 7 months to 30 Sept £3,520 (6035 x 7/12)

With the avalanche of threads regarding 'the £60 rebate' .... most would realise that Apr - Sept (inc) is 6 months!

johnllew

Mikeyorks wrote: »

With the avalanche of threads regarding 'the £60 rebate' .... most would realise that Apr - Sept (inc) is 6 months!

Perhaps a case for getting a professional in, rather than DIY?

Mikeyorks

As this one is 'just a bit of arithmetic' - but another one was as wrong as it's possible to be ........ it's an observation I was tempted to make.

In particular as there's some less than subliminal advertising going on.

jimmo

johnllew wrote: »

Perhaps a case for getting a professional in, rather than DIY?

Oh yeah! I get that.
Very good! :rotfl: :rotfl: