New employee in the UK, what about tax?

NileBoy

Hello,

I am from Egypt and I just arrived in the UK 2 months ago with my wife who is studying her masters in Manchester. My visa is a student dependant visa which entitles me to work full time, I also received a NI number 10 days ago.

I started my new work last week and my salary is 12,000 per anum. I just want to know how much tax will be cut out and how much I am getting per month?

Note that we are exempted from council tax because my wife is a student.

Cheers :beer:

Bennifred

Your wife will be exempt from paying Council Tax because of being a full-time student, but I think YOU will still be liable to pay it (with a 25% reduction if you are the only other adult in the house)

System

You need to complete a P86 Arrival in the UK form now that you have commenced employment.
You can down load it here - http://www.hmrc.gov.uk/cnr/p86.pdf

You should also complete a P46 for your employer and tick box A - http://www.hmrc.gov.uk/forms/p46.pdf

If you are getting £12000 per year you will probably only receive about £4000 up to the end of our tax year which is 5th April 2009.
You are entitled to have £6035 tax free in the current tax year so you should not pay any tax up to April.

After April your personal tax free allowance will increase to £6475, as detailed in the governments Pre Budget report.

This means that from April the first £6475/12 = £539.58 per month or £6475/52 - £124.51 per week will be tax free and everything above that will be taxable at 20%

Cook_County

Pam17 wrote: »

You need to complete a P86 Arrival in the UK form now that you have commenced employment.
You can down load it here - http://www.hmrc.gov.uk/cnr/p86.pdf

You should also complete a P46 for your employer and tick box A - http://www.hmrc.gov.uk/forms/p46.pdf

If you are getting £12000 per year you will probably only receive about £4000 up to the end of our tax year which is 5th April 2009.
You are entitled to have £6035 tax free in the current tax year so you should not pay any tax up to April.

After April your personal tax free allowance will increase to £6475, as detailed in the governments Pre Budget report.

This means that from April the first £6475/12 = £539.58 per month or £6475/52 - £124.51 per week will be tax free and everything above that will be taxable at 20%

I am afraid that this is out of date because of Schedule 7, Finance Act 2008 as the OP is a non-dom.

If the OP had non-income greater than £2,000 in the current tax year he cannot exempt pre-arrival income using the split-year concession. Consequently he only gets the tax-free personal allowance if he declares worldwide income for the entire tax year or non-UK income is below the de-minimis of £2,000.

System

Thanks Cook_County, I read between the lines in the OP's post and added 2and 2 together to get 5 and assumed the OP had no other income prior to arrival in the UK.:o

NileBoy

Bennifred wrote: »

Your wife will be exempt from paying Council Tax because of being a full-time student, but I think YOU will still be liable to pay it (with a 25% reduction if you are the only other adult in the house)

Hello, well the university informed her that as long as we provided documentation we are married then we are both exempted from Council Tax :j

NileBoy

I dont recall my employer asked me to fill any forms, do I still have to? And I am still really lost about how much tax cut will come out of the 1000 a month

briona

NileBoy wrote: »

And I am still really lost about how much tax cut will come out of the 1000 a month

Try http://www.listentotaxman.com/ – it calculates everything for you. Until the tax free allowance (TFA) goes up next April, on a salary of 12K, you will take home something in the region of £840pm (give or take a few pence).

Hope that helps

Briona

Cook_County

Most non-doms arriving in the UK no longer automatically get to claim the personal allowance. The law changed this year.

CLAPTON

If your annual salary is 12,000 then you will earn 4,000 this tax year (i.e.
between now and end March 2009) so you will pay no tax as you are allowed to earn £6035 per annum before tax is liable.

However, you will pay NI at a rate of 11% on earnings above 453 per month

So as you earn 1000 per month you will pay 11% of (1000-453) being about £60 per month.

Next year you will start to pay tax I'm afraid.

NileBoy

briona wrote: »

Try http://www.listentotaxman.com/ – it calculates everything for you. Until the tax free allowance (TFA) goes up next April, on a salary of 12K, you will take home something in the region of £840pm (give or take a few pence).

Hope that helps

Briona

Thanks Briona So you mean the tax cut will actually go down by next April?

Cook County, can you please clarify more?

Clapton, so you mean till April I will receive tax free monthly earnings? After NI deduction of corse

Thanks everyone!