employees tax?

helenad1

Hi!

10 weeks ago i started a 6 month temp contract through reed recruitment and on my payslips for the last two weeks something called employees tax (ET) has appeared on my payslip. at first i thought it was income tax but i'm no where near the personal allowance threshold so i don't think I've started to pay that yet. NI & student loan (SL) payments come out every week.

Last week i payed 40p employee tax which was 0.01544% of my wage before NI/SL/ET. This week my employees tax jumped up to 23.60 although i earned a lot less this week so it was 0.61832% of my wage before NI/SL/ET.

I've looked around but i don't think i'm looking in the right place for information on this, if anyone can help me out with some information or some place to start reading on this i'd be grateful,

thanks

Savvy_Sue

Welcome.

You start to pay tax as soon as your monthly income goes over a certain amount, depending on your tax code, based on the assumption that what you earned this month is what you're going to earn for the rest of the year, and relating back to what you've already earned this year / what was on your P45 or P46.

You don't only start to pay tax when your earnings are above your personal allowance.

If you're earning enough to pay NI and student loans, I'm not surprised tax has been taken off too.

However, if you don't understand your payslip, especially abbreviations, the best people to ask are your payroll people.

chrisbur

helenad1 wrote: »

Hi!

10 weeks ago i started a 6 month temp contract through reed recruitment and on my payslips for the last two weeks something called employees tax (ET) has appeared on my payslip. at first i thought it was income tax but i'm no where near the personal allowance threshold so i don't think I've started to pay that yet. NI & student loan (SL) payments come out every week.

Last week i payed 40p employee tax which was 0.01544% of my wage before NI/SL/ET. This week my employees tax jumped up to 23.60 although i earned a lot less this week so it was 0.61832% of my wage before NI/SL/ET.

I've looked around but i don't think i'm looking in the right place for information on this, if anyone can help me out with some information or some place to start reading on this i'd be grateful,

thanks

I think that you may have got your decimal points in the wrong place.
Best way to have your figures checked is to give full details. Tax code and basis, along with the gross for these two weeks with all deductions and most important of all your total taxable earnings from all employments for this tax year.

KiKi

As Sue explained, you don't earn £7475 and only THEN start to pay tax. HMRC assume that what you're earning each week is what you'll continue to earn each week until 05 April 2012. If this puts you over the personal tax allowance (including all earnings since 06 April 2011), then you will be taxed.

HTH
KiKi

Savvy_Sue

Thank you for explaining that so much better than I did Kiki and for putting the numbers in. I can never remember what they are.