First job after being a student

digitalphase

I got my first pay check after being a student for four years on 28th August. I last had a part time job well over a year ago.

I noticed that I haven't had any income tax deducted, but have had NI taken off.

Is this correct? Do I get a tax allowance as I've been out of work for so long, until I have to start paying tax? Haven't had student loan deducted either.

I am earning £18,000.

Tax code 647L and I have never claimed JSA or any kind of benefits if that makes any difference.

mrkbrrws

You have a personal allowance of £6,475 for the tax year to 5 April 2010.

As we are 5 months into the tax year, you can earn 5/12 x £6,475 = £2,698 before you start to pay tax. Because you have earnt less than that, no tax has been deducted.

You will have a few months of no tax deductions, which is correct.

National Insurance Contributions are due on earnings over £476 a month, so it is right that you are paying some.

I believe your Student Loan deductions should start from next April.

digitalphase

Ok thanks

So, how many months will I have before I pay tax as my earnings before tax are £1500?

Will I get some taken off next month or will they let me have another month before I have to pay...

suso

end of september you can have earnt 3237.00 without paying tax..

So i'm guessing you have earnt 3000. so no tax should be due.

end of october you could have earnt 3777.00 before paying tax.

if its 1500 per month then you will have earnt 4500, so you will be taxed on 723 - approx 144.00

end of november you could have earnt 4316 before paying tax
your earnings 6000, so you will be taxed approx 192.00

After than on earnings of 1500 per month you'll be taxed approx 192.00

On top of the tax there is also NI contributions but they should stay at the approx same level as you have already paid.

digitalphase

Thanks very much suso, that's explained it well for me