Daughter's first pay- not been taxed

piggybankrupt

Hi
Any advice appreciated!

My 18 year old Daughter started her 1st proper job 6 weeks ago & has just had her first pay as they didn't get her set up in time for last months pay - so has just had 6 weeks pay today.

Her annual salary for 30hrs per week is £10,300 & she earned around £2000 from April to October with a weekend job before she got this job.

She is concerned that she has recieved too much in her payslip for the 6 weeks & when I look she has recived just over £1200 . They have deducted NI & Pension (NHS pension scheme) but no tax. Is this correct? Do you earn all your £6300 before you start paying tax - I pay tax all year (also NHS) - they don't seem to wait until I've earned £6300 before they start deducting it!

We are confused & she needs to make some payments from her salary but is frightened to spend it in case she has to pay some back & we are also unable to work out her budget & how much keep she will pay etc as we can't work out what her normal monthly pay will be.

Hope this makes sense to someone!

chriiiiiiiis

She needs to hand her P45 from her weekend job to her new employer.

jem16

piggybankrupt wrote: »

Hi
Any advice appreciated!

My 18 year old Daughter started her 1st proper job 6 weeks ago & has just had her first pay as they didn't get her set up in time for last months pay - so has just had 6 weeks pay today.

Her annual salary for 30hrs per week is £10,300 & she earned around £2000 from April to October with a weekend job before she got this job.

She is concerned that she has recieved too much in her payslip for the 6 weeks & when I look she has recived just over £1200 . They have deducted NI & Pension (NHS pension scheme) but no tax. Is this correct? Do you earn all your £6300 before you start paying tax - I pay tax all year (also NHS) - they don't seem to wait until I've earned £6300 before they start deducting it!

No it doesn't work that way. Each month you get one twelfth of your allowances. However if she had not worked from April to October she would have had 6 months of tax-free allowances to get so it is possible that the first month could see no tax being deducted.

However what complicates matters is that she had a job from April to October and would have been getting her allowances with that job although not all of them as she didn't earn quite enough. It's therefore likely that she should have paid some tax.

We are confused & she needs to make some payments from her salary but is frightened to spend it in case she has to pay some back & we are also unable to work out her budget & how much keep she will pay etc as we can't work out what her normal monthly pay will be.

Hope this makes sense to someone!

On £10,300 a year normal gross monthly pay would be £858.33 and net pay would be £742.88. This doesn't take into account pension payments though.

Did she hand in her P45 from her weekend job when she started work? Or is she still working at the weekend job?

CLAPTON

assuming it's her november salary then she can have earned 6035x8/12 = 4023 before paying tax

how much has she earned since april ?
what is her tax code?

LizzieS_2

CLAPTON wrote: »

assuming it's her november salary then she can have earned 6035x8/12 = 4023 before paying tax

Agree.

Earnings quoted by OP are £2000 April to October (looks like that job now ceased) and then £1200 for part of October and all November.

As the monthly pay is £858, she will not pay tax until at least February (I say that as the NHS pensions contributions are also tax exempt so depending how much she pays it could be March before any tax is deducted).

piggybankrupt

Thanks everyone!
She did hand in P45. Her tax code says 603L Cummulative whatever that means!.
She spoke to wages office & they said she won't start paying until she gets to £6030 but why then do her Dad & I pay tax all year not just when we've earned £6030??.

CLAPTON

piggybankrupt wrote: »

Thanks everyone!
She did hand in P45. Her tax code says 603L Cummulative whatever that means!.
She spoke to wages office & they said she won't start paying until she gets to £6030 but why then do her Dad & I pay tax all year not just when we've earned £6030??.

it works like this

the 6035 is divided over the year so each month you get the benefit of 1/12 the 6035 ..otherwise you would pay no tax for the first 2/3 months then be taxed heavily thereafter

so month one you can earn 502 before any tax ... if you earn approximately the same each month then you get 502 tax free each month

however, if you earn less than 502 (like your daughter ) then you get the un-used bit of the allowance in the next month

so by september (i.e. half the year) you can earn a total for the six months of 3017.5 before you pay tax
by october you can earn up to a total of 3520 (i.e. 6035x7/12)
by november 4023
by dec 4526
by jan 5029
by feb 5532
by march 6035 of course ..your full year's tax allowance