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Taxed before reaching personal limit?
Beckyy
Posts: 2,833 Forumite
in Cutting tax
I started my current job last July, initially on emergency tax then my code changed to 747L.
I've just recieved my most recent payslip and have been taxed
TAX £39.00
N.I. CAT.D £35.74
But my Taxable Pay YTD is: £7,099.92
Am I missing something glaringly obvious, or should I not have been taxed until my pay this year to date has reached £7470?
I've just recieved my most recent payslip and have been taxed
TAX £39.00
N.I. CAT.D £35.74
But my Taxable Pay YTD is: £7,099.92
Am I missing something glaringly obvious, or should I not have been taxed until my pay this year to date has reached £7470?
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Comments
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I started my current job last July, initially on emergency tax then my code changed to 747L.
I've just recieved my most recent payslip and have been taxed
TAX £39.00
N.I. CAT.D £35.74
But my Taxable Pay YTD is: £7,099.92
Am I missing something glaringly obvious, or should I not have been taxed until my pay this year to date has reached £7470?
Yes you are. Your tax free allowance is divided by the frequency of pay, so of monthly you can earn £622 per month without paying tax. You don't get to earn £7.5k before you start paying it!Science adjusts its views based on what's observed.
Faith is the denial of observation, so that belief can be preserved.
:A Tim Minchin :A
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I started my current job last July, initially on emergency tax then my code changed to 747L.
I've just recieved my most recent payslip and have been taxed
TAX £39.00
N.I. CAT.D £35.74
But my Taxable Pay YTD is: £7,099.92
Am I missing something glaringly obvious, or should I not have been taxed until my pay this year to date has reached £7470?
Yes you are missing the fact that your tax free allowance is divided up into weeks or months depending on your pay frequency. So at month 10 (end of January) your tax free allowance is 10/12ths of £7475.0 -
I did wonder that, but my basic pay is under the tax limit and is only going over through overtime. I have never been taxed before on pay over £622 a month, so found it odd that it's happened now the month before I go over the limit, and not on every pay over £622?0
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I did wonder that, but my basic pay is under the tax limit and is only going over through overtime. I have never been taxed before on pay over £622 a month, so found it odd that it's happened now the month before I go over the limit, and not on every pay over £622?
That's because you were 'using' the unused £622 a month allowance from April to July. Sounds like that's used up - though I'm not doing the maths to check0 -
That is because you had not used your allowances for April, May and June, since you only started working in July. But now you have caught up on your allowance amount, so will pay if you go over the £622 per month.0
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Ohhh! I feel stupid for asking now, it's so obvious once you realise. Thank you for the replies
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