New job and tax

princessk1

Hope this is in the right place!

My husband started a new job 2weeks ago at a garden centre,they are paying him weekly in cash-this I thought to be a bit odd but apparantly everyone is paid in cash.
He has been paid today and on his wage slip it has NI deductions but nothing has been taken off in tax.
Am I right in thinking this is wrong?what can he do to cover himself as obviously we really don't want a huge tax bill coming through when someone realises he hasn't been paying it!
Thanks

Happy_Girl_2

How much is the gross pay? What tax code is state on the payslip?

princessk1

His tax code says 647L and the gross pay is 10800

jem16

princessk1 wrote: »

His tax code says 647L and the gross pay is 10800

If he only started work 2 weeks ago and has not worked since 6th April this year he will have some allowances for April and part of May ( approx 5/6 ) weeks to use up first which will probably mean the first few weeks will not be due any tax.

Did he work then?

princessk1

Ok,phew!he didn't work but was on jobseekers,so 'earnt' £404 in that time.
So I shouldn't worry for another couple of weeks about him not being taxed,I will be back if it continues
Thank u

jem16

princessk1 wrote: »

Ok,phew!he didn't work but was on jobseekers,so 'earnt' £404 in that time.

Jobseekers is taxable so would count towards his income. Did he hand in his P45 or did he complete a P46?

So I shouldn't worry for another couple of weeks about him not being taxed,I will be back if it continues
Thank u

Can you just confirm if anything was after the 647L code like Wk1/Mth1?

princessk1

He did hand his p45 in to his new boss and it says 647L W1 on the slip,does that make a difference?

jem16

princessk1 wrote: »

it says 647L W1 on the slip,does that make a difference?

Yes - a big difference.

647L W1 is a non-cumulative tax code so it does not take into account what has happened since April 6th so you can forget what I said about those tax-free allowances for April/May.

In that case he should have paid £16.63 on each week's wages assuming he has been paid £207.69 for each week.

If he was paid £124.52 or less for each week (gross) then he would pay no tax.

chrisbur

princessk1 wrote: »

He did hand his p45 in to his new boss and it says 647L W1 on the slip,does that make a difference?

This is emergency tax. Check part 1A of the P45 to see if the tax code had an X after it and had entries in box 8. If that is the case then you need to wait a little while until the tax office sends full details to employer. If there was no X and P45 had details in box 7 then these details should have been used, it may be that they missed the payroll run and will be used next time so check with employer.
On weekly pay NI will be payable on gross of over 110.00 and tax (on emergency code) on gross over 124.60. If his gross was 108.00 he should not have paid NI or tax, could this have been his net pay?

Regarding the emergency tax code this will probably be his correct tax code but there may be some unused allowance which will reduce his tax a little on the week it is applied.

jem16

chrisbur wrote: »

If his gross was 108.00 he should not have paid NI or tax, could this have been his net pay?

The OP wrote that gross pay was 10800 - no sign of a decimal point.

I read that to mean £10,800pa and not £108.00

Could the OP clarify?

chrisbur

jem16 wrote: »

The OP wrote that gross pay was 10800 - no sign of a decimal point.

I read that to mean £10,800pa and not £108.00

Could the OP clarify?

Yes I agree, now that I look at it properly.