Income tax question

domi1989

Hiya

I've just started a new job that pays every other week and have worked out that my yearly wage to be £13,105. As I understand it, I have a tax free allowance of £6,475 each financial year. I was therefore suprised to see I was being taxed 20% on my first earnings (£61.80 off £309.66) considering that from now until the end of the tax year I won't have made above £6,475. Should I be getting taxed on my current earnings and if, as I believe, I shouldn't be, how do I sort this?

Thanks

dori2o

Is this your first job since 6 April 2010? Do you have a P45 from a previous employer?

If this is your first job since 6 April 2010, complete a P46 form (this can be obtained from your employer) and select option A. This will instruct your employer to put you on the correct tax code.

If this is not your first employer since 6 April, hand in the P45 that your last employer gave to you. If you do not have it for whatever reason,ask your employer for a P46 and select option B. Your employer will put you on the emergency tax code and when HMRC receive the P46 they will issue the correct code to your employer.

The overpaid tax will be refunded to you once the correct tax code is operated for the first time.