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Can someone explain income tax changes to me?

rubytob
rubytob Posts: 32 Forumite
in Boost your income
Hi,

I am starting a new job and will earn just £ 500 over the £9205 tax allowance announced today.
Does that mean that I get taxed on £500 a year? or have I completely misunderstood this.
Silly question I know, but am trying to work out my take home pay and this has confused me a little.

Thanks in advance

ruby

Comments

  • Bigmoney2
    Bigmoney2 Posts: 640 Forumite
    9205 doesn't come in till april 2013.
    Currently the personal allowance is 7475, from 6th April 2012 it will be 8105. Anything you earn over this amount will be taxed at 20%, plus NI reduction as well, less any pension contributions.
  • rubytob
    rubytob Posts: 32 Forumite
    Thanks so no changed until next year then - thanks for that x
  • heretolearn_2
    heretolearn_2 Posts: 3,565 Forumite
    It is changing. It changes in April 2012. You are not currently on an 8105 allowance.

    It changes every year.
    Cash not ash from January 2nd 2011: £2565.:j

    OU student: A103 , A215 , A316 all done. Currently A230 all leading to an English Literature degree.

    Any advice given is as an individual, not as a representative of my firm.
  • steve_luton
    steve_luton Posts: 16 Forumite
    Hi,

    If you want an accurate calculation, google "net pay calculator" and enter your details (gross pay). It will show your pay based on monthly or weekly amounts.

    Most are now updated for 2012/13 tax year and will often show current year as well.
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