not being taxed...yet...

ZippyMan

Hi,
I recently started a new job and I have just received my second Pay packet.

My first pay saw me earn £2100 and my second pay, £1200. The first pay was so much larger because it was almost two months pay as I missed the cut off point for the previous months payday.

Anyway, my issue is, I have yet to be taxed. My Annual earnings are £15000, and my tax code shows as 647L (Standard code I believe).

In my previous jobs, I have never made enough money to be taxed (This is my first full time job).

Why is it that I haven't been taxed yet? Could it be because I've never been taxed before and I'm yet to hit £6475 this year? I assumed that I should have been taxed because I'm earning more than a 12th of £6475 a month...but this wouldn't seem to be the case...

Any advice would be welcomed.

fengirl_2

You are correct in stating that your 6475 allowance is divided into 12 - 1/12th each month. However, if your earnings so far this tax year have been nil or low, you still have all those 1/12th's to use up before you pay tax.

jem16

Have you had another job since 6th April this year?

If you have did you hand in your P45 from that job or complete a P46 to say that you had another job this tax year?

If it's your only job since 6th April you will be getting the benefit of your tax-free allowances from April till now.

CLAPTON

the 6475 tax free is spread evenly through out the year

so by the end of september you have earn an accumulated tax yearly total income of 3237 before tax is due (i.e. 6475 x 6(months) /12) (i.e. total earning since april 2009)

by the end of October you can earn a yearly total of 6475 x 7/12 = 3777

so it depends upon your total earnings to date this tax year.

ZippyMan

So, if I've understood you correctly, if my Pay next month takes me over 3777 (End of October's tax limit) then I will be taxed?

Or will next months pay need to take me over the end of november's limit (4316)?

My pay day is the 15th of each month.

And yes, I did give in my P45.

CLAPTON

what did your last payslip say was your pay to date?
which month was the payslip for ?

ZippyMan

My pay to date is just over 3300, and it was for this month (October).

jem16

ZippyMan wrote: »

My pay to date is just over 3300, and it was for this month (October).

How much did you earn in your previous job?

ZippyMan

240 before I left this year.

jem16

So £3540 altogether.

For November as you rightly say you will have £4316 worth of tax-free allowances so if next month's pay is £1200 as last month's you will have some tax to pay although not as much as normal.

In December you should be taxed normally.