Tax codes -how much before tax

hannah58

I have changed jobs 5 weeks ago my p45 says my earnings were 2815.44 when i left ,i have just had my first months pay in the new job,earning 537,77 they took £22 tax,i only work 20 hrs a week. The tax code on my p45 was 647L & the same on my wage slip. Should i be paying tax on this ammount

heretolearn_2

Yes, it sounds about right to me. If that's going to be your monthly pay from Sept - April, that plus your earnings to date, will equal just under £71000 annual income. Your tax free allowance is £6475, so you'll be paying a small amount of tax each month from now on. the number of hours you work doesn't effect this.

CLAPTON

presumably in your previous job you were paying a small amount of tax? .. £4 or £5 .

but with a tax code of 647L then in your new job earning only 537.77 for a full month then you should be paying no tax although you pay about 7 in NI

was the 537.77 for a full month or 4 weeks

on your P45 what was the total tax to date figure?
presumably the previous job covered april 2010 to end august?

chrisbur

It looks to me as if you may have been paid every four weeks in your last job and your final payment took you up to week 24. As your first monthly payment would be paid on month 6 this is the equivalent of week 26 so you only had 2 weeks tax allowance left. If your monthly earnings remain the same you will get a very small tax rebate each month for the rest of the tax year, averageing about 40 pence a month.

hannah58

i have not paid tax on my last job,I got paid every 4 weeks as I said I had earnt 2,815,44 from April to end Aug,now I get paid monthly from my new job.I got my p45 in time.cant understand why they taxed me on 537,77.The money expert calculater says I wouldnt pay it

CLAPTON

for whatever reason you seem to have paid no tax on your earning fRom april to end august whereas you ought to have

so at the end of september your total earning were 3352 (i.e. 2815 + 537)

and your tax allowance for 6 months is 6475/2 = 3237
so you pay tax on 3352-3237 = 114.5
and the tax is 114.5 x 20% i.e. = £22.9

in reality you are paying tax on your earlier earnings... I can't immediately explain why you weren't paying properly in your previous employment

chrisbur

hannah58 wrote: »

i have not paid tax on my last job,I got paid every 4 weeks as I said I had earnt 2,815,44 from April to end Aug,now I get paid monthly from my new job.I got my p45 in time.cant understand why they taxed me on 537,77.The money expert calculater says I wouldnt pay it

As you were being paid four weekly as I suspected your last payment fell in the period week 21 to week 24. This covered the time from August 24 to September 20. It meant that you had received your tax allowance up to September 20 and so when you moved to monthly pay all you had left of your September allowance was the part from September 21 to the end of the month.

It is a quirk of the PAYE system that this sort of thing often occurs when you move from one pay period to another in your case from 4 weekly to monthly.

As I said in my last post from now on to the end of the tax year you will get a very small tax rebate averaging about 40 pence a month.

Tax calculators hardly ever give the correct answer when something like this happens. They work on the basis that you will earn the same amount every payday and all your paydays will be equally spaced, every week every month every four weeks etc. You have changed from 4 weekly to monthly.

Unfortunately the problem with these calculators is that to know when you can use them you have to understand PAYE and if you understand PAYE you do not need to use them.