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I reckon iv'e paid too much Income Tax

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Hi, i recently started a new job, and have been given the tax code,747L.
Upon receiving my first pay slip, i notice that i have been deducted Income Tax.
Surely my Employer is wrong to deduct Tax when the first £7,470 is the amount you are able to earn before you start paying it?
I have tried contacting the Inland Revenue several times on the phone today, but when you finally get through nobody bothers to answer your call.

Comments

  • System
    System Posts: 178,330 Community Admin
    10,000 Posts Photogenic Name Dropper
    Divide the £7475 by 12 because it is apportioned equally for each month's pay so that the allowance is spread across the tax year.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    10,000 Posts Combo Breaker
    you are allowed to earn 7475 before tax in the whole tax year

    however, the allowance is allocated by a month by month basis so you take home salary stays the same each month

    so in the first month they allow you 7475/12 (=623 ) before any tax which is charged at 20%
    then the same for subsequent months
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