Not been taxed for ages is this correct?

BrettMorganxD

I know you can earn £7,470 before you even start to be taxed but I always though they divided it by 12 (your salary).

i have been working for 4 months now and have NI taken but not tax is this right?

if not as soon as I getr to the above amount I am going to phone them up. Do you have to pay it back all in one go if you are taxed wrong or can you split it?

also do you have to pay it back at all??? as it was their error.

shop-to-drop

We are now at the end of the tax year so you have had the full amount of tax free allowance in the time you've been working. They divide it by the number of months left in the tax year. You will probably automatically start paying tax in April.

BrettMorganxD

shop-to-drop wrote: »

We are now at the end of the tax year so you have had the full amount of tax free allowance in the time you've been working. They divide it by the number of months left in the tax year. You will probably automatically start paying tax in April.

so i do not have to worry about the fact no tax has been taken between october 31st and now?

shop-to-drop

No don't worry Brett all sounds as it should be.

BrettMorganxD

shop-to-drop wrote: »

We are now at the end of the tax year so you have had the full amount of tax free allowance in the time you've been working. They divide it by the number of months left in the tax year. You will probably automatically start paying tax in April.

so 11,278/12 x 5 = 4699

so i havn't been taxed because it is under the limit?

shop-to-drop

Yep you haven't earned enough this financial year to pay tax. But come April you will start paying some tax each month so be prepared for a drop in income.

BrettMorganxD

is end of tax year march 31st?

Does that mean I will have one last tax-free payment considering payday is on the 28th

shop-to-drop

Yes one more tax free pay day as financial year starts 6th April.

BrettMorganxD

oh thank you shop to drop I was panicing as I was told they divide your salary by 12 and the first 7470 divided by 12 is untaxable

thanks.

Mikeyorks

No they divide your personal allowance (£7475 this year - £8105 next) by 12. Then deduct that from pay to give a taxable figure.

Hence Month 1 you had £623 of tax free allowances to offset against pay. By Month 2 you had £1246 to set off against your accumulated gross pay ...... and so on. Until it all restarts with the first pay period after 6th April.

So you started being paid this year with several months worth of allowance in reserve. And haven't yet caught up. That's the accumulative nature of PAYE. NI works purely on pay periods - no accumulation.

heretolearn_2

Not to worry you but this is all ok only as long as you weren't working elsewhere earlier in the year?

Also jsa is taxable - so that would take up part of your tax free allowance if you were claiming.

Did you come off JSA to start work? Did you give your employers the P45 to get all your year to date figures correctly set up?